DefinePK

Abstract

This study examines the trade potential of Pakistan with the countries of the Gulf Cooperation Council (GCC). Trade potential is estimated using the RCA (Revealed Comparative Advantage) index technique, utilizing HS-8 tariff line level data from 2007 to 2021. Our findings identify 102 products at the tariff line where Pakistan enjoys a comparative advantage. These products span various sectors, including copper, iron, steel, minerals, wood, pharmaceutical, paper, tobacco, sugar, and plastic. Furthermore, the paper discusses the trade hindering effect of factors such as the absence of effective trade agreements, shortage and high energy prices, and other high input costs.