RCEP: An Opportunity to Increase Pakistan’s Trade & Investment Potential

April 1, 2021


  1. With India unlikely to join RCEP in the medium-term, Pakistan’s ICT industry, particularly financial technology, business process outsourcing, consultancy and software development has the opportunity to gain a modest share in the regional value chain.

  2. With labor costs lower than most RCEP members, Pakistan has the opportunity to develop its regional value chain in the manufacturing and exports of mobile phones.

  3. Joining RCEP may inject new momentum to Pakistan’s export strategy by geographically diversifying its existing exports.

  4. Being part of RCEP would provide the much-needed push to Pakistan’s trade and investment policy by bringing transparency, simplicity and predictability in the policy making.

  5. Being an outsider, Pakistan is likely to face a larger trade deficit, potential loss of BRI financing and forgo the benefits of deeper regional and global trade integration.