ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday the South American market could prove beneficial to the Pakistani economy after the federal cabinet approved a trade framework agreement with a bloc comprising Argentina, Brazil, Paraguay and Uruguay, based on the commerce ministry’s recommendation.
Pakistan signed the trade framework agreement with Mercosur, also known as the Southern Common Market, in 2006 with the aim of initiating negotiations to establish a Preferential Trade Agreement (PTA). However, the two sides could not make significant progress in that direction in subsequent years or significantly enhance bilateral economic cooperation.
In early 2019, Pakistan explored the possibility of moving toward a Free Trade Agreement (FTA) with the bloc, saying it could help bridge the trade deficit with the Latin American states, but the initiative once again did not progress far.
“The federal cabinet, on the recommendation of the commerce ministry, has granted ex-post facto approval for the trade framework agreement between Mercosur (a trade bloc in South America comprising countries like Brazil, Argentina, Uruguay and Paraguay, commonly referred to as the Southern Common Market) and the Islamic Republic of Pakistan,” said an official statement issued after the cabinet meeting.
“In this regard, the prime minister said the South American market could potentially be a good market for Pakistani products,” it added. “However, the Pakistani economy has not yet been able to reap the benefits of this market.”
Pakistan plans to increase its textile and other exports to the Latin American market.
Officials have previously said that an FTA would help strengthen the country’s business and trade relations in the region and provide a level playing field against its competitors.
The federal cabinet’s approval of the trade framework agreement comes at a time when Pakistan is seeking foreign investment and exploring international markets for exports to bolster its economy.
Pakistan PM highlights benefits of South American market after cabinet approves trade agreement
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Pakistan PM highlights benefits of South American market after cabinet approves trade agreement
- Pakistan signed the trade framework agreement with a Latin American bloc in 2006 for preferential trade
- It plans to enhance textile exports to the region and secure a level playing field against its competitors
Three Afghan migrants die crossing into Iran as UN warns of new displacement toward Pakistan
- UNHCR says 1.8 million Afghans were forced to return from Iran this year, straining Afghanistan’s resources
- Rights groups warn forced refugee returns risk harm as Afghanistan faces food shortages and climate shocks
KABUL: Three Afghans died from exposure in freezing temperatures in the western province of Herat while trying to illegally enter Iran, a local army official said on Saturday.
“Three people who wanted to illegally cross the Iran-Afghanistan border have died because of the cold weather,” the Afghan army official told AFP on condition of anonymity.
He added that a shepherd was also found dead in the mountainous area of Kohsan from the cold.
The migrants were part of a group that attempted to cross into Iran on Wednesday and was stopped by Afghan border forces.
“Searches took place on Wednesday night, but the bodies were only found on Thursday,” the army official said.
More than 1.8 million Afghans were forced to return to Afghanistan by the Iranian authorities between January and the end of November 2025, according to the latest figures from the United Nations refugee agency (UNHCR), which said that the majority were “forced and coerced returns.”
“These mass returns in adverse circumstances have strained Afghanistan’s already overstretched resources and services” which leads to “risks of onward and new displacement, including return movements back into Pakistan and Iran and onward,” UNHCR posted on its site dedicated to Afghanistan’s situation.
This week, Amnesty International called on countries to stop forcibly returning people to Afghanistan, citing a “real risk of serious harm for returnees.”
Hit by two major earthquakes in recent months and highly vulnerable to climate change, Afghanistan faces multiple challenges.
It is subject to international sanctions particularly due to the exclusion of women from many jobs and public places, described by the UN as “gender apartheid.”
More than 17 million people in the country are facing acute food insecurity, the UN World Food Program said Tuesday.
