Islamabad: The Pakistani government has decided to join the South American trade bloc MERCOSUR to boost its exports.
The federal cabinet has already approved Pakistan’s participation in the American trade bloc, which had previously faced delays due to issues in the bilateral trade agreement between Pakistan and MERCOSUR.
Prime Minister Shahbaz Sharif has expressed concerns about the delays in the trade agreement within the cabinet.
It is noteworthy that some time ago, the Ministry of Commerce presented the trade agreement framework between the Pakistani government and the trade bloc to the cabinet for approval.
The government was informed that the South American trade bloc initially agreed to a preferential trade agreement, which could later be converted into a free trade agreement.
The Ministry of Commerce also informed the cabinet that discussions with countries within the bloc began only after the federal cabinet’s initial approval.
Following this, Brazil, Argentina, Uruguay, and Paraguay were ready for an initial agreement.
According to the Ministry of Commerce, South American markets were chosen under the policy to increase the country’s exports, with the hope that Pakistan would be able to further promote its exports in these markets.