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