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.
