The discussions between Pakistan and the Gulf states regarding a Free Trade Agreement (FTA) have advanced significantly, as reported by Pakistani state media on Friday.
Last September marked a milestone as Pakistan and the Gulf Cooperation Council (GCC) signed a “preliminary” FTA, a move hailed by the country’s commerce ministry as a significant step in bilateral economic cooperation. The GCC, in turn, emphasized the importance of the agreement, labeling it as a pivotal moment in their collaboration.
Since 2022, both parties have engaged in technical-level talks aimed at exploring the feasibility of an FTA designed to bolster Pakistan’s exports to the six-nation bloc, which includes prominent economic players such as Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait.
During a recent trade sector meeting chaired by Prime Minister Shehbaz Sharif, officials were directed to formulate trade policies with the primary objective of facilitating the domestic business sector, as reported by the state-run APP news agency.
The Prime Minister was apprised during the meeting that discussions on the Free Trade Agreement between Pakistan and the Gulf states were in the advanced stages, with transit trade agreements with Uzbekistan and Tajikistan already materialized.
A notable event was the Pakistan-Saudi Business Conference, where approximately 450 business-to-business meetings were held, accompanied by a steady rise in e-commerce trade volume. Moreover, over 3,000 firms are now enlisted on the Pakistan Trade Portal, indicating a burgeoning interest in trade partnerships.
Pakistan has recently played host to various foreign officials and business delegations, signaling its openness to international partnerships and encouraging exploration of investment opportunities across diverse economic sectors.
Of particular significance was the visit of a Saudi business delegation comprising senior representatives from around 35 companies, which concluded its engagements in Pakistan after participating in multiple business-to-business meetings. Additionally, Prime Minister Shehbaz Sharif met with a group of Japanese industrialists, advocating for investment in Pakistan’s emerging electric car industry.
Anticipation is high for the upcoming visit of Saudi Crown Prince Mohammed bin Salman later this month, with hopes pinned on substantial investment inflows that could further boost economic ties between the two countries.
During the recent trade sector meeting, the Prime Minister urged for steps to enhance exports of non-traditional goods and emphasized the importance of promptly paying certified duty drawbacks to exporters. Furthermore, he underscored the necessity of consulting stakeholders during policy formulation and implementing strategies to uplift the auto sector, a crucial segment of Pakistan’s economy.
The Prime Minister directed the relevant ministry to develop a comprehensive strategy to evaluate the performance of trade and investment officers stationed in Pakistan’s missions abroad. Plans are underway to reward competent officers and remove underperformers to ensure efficient representation of Pakistan’s economic interests on the global stage.
These developments unfold against the backdrop of Pakistan’s ongoing efforts to stabilize its economy, with the country seeking a fresh bailout from the International Monetary Fund (IMF) following the completion of its $3 billion IMF bailout deal last year, which helped prevent a default.
While Pakistan currently maintains Free Trade Agreements with key partners such as China, Malaysia, and Sri Lanka, there is an ongoing endeavor to explore and expand export opportunities to additional trade destinations, ensuring the diversification and resilience of Pakistan’s economy in the global market.
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