Fifth session of Pakistan-Yemen JMC: TDAP asked to examine potential for trade expansion

Ministry of Commerce (MoC) has asked the Trade Development Authority of Pakistan (TDAP) to examine the potential of trade expansion with Yemen. Through a recently issued letter, the MoC demanded proposals from the authority for enhancement of bilateral trade to be discussed in the forthcoming 5th session of the Pakistan-Yemen Joint Ministerial Commission (JMC).
The ministerial level meeting is scheduled to be held in Islamabad during the first week of November 2010, where a comprehensive discussion concerning the existing bilateral co-operation between the two countries would be held, sources told Business Recorder on Wednesday. The two sides would also examine the implementation status of the agreements, signed by the Commission in its previous sessions held in both the countries. According to a report of Federal Board of Statistics (July to April 2009-10), Pakistan's export to Yemen increased from $57.26 million to $83.31 million.
Yemen being one of the potential import markets of Middle East region, with estimated imports of over $10.54 billion has also a good demand for Pakistani products like cotton, rice and pharmaceutical items. The import of pharmaceutical items from Pakistan also increased after the visit of a seven-member buyers' delegation of Yemen to Islamabad in November 2009 to participate in the Expo Pakistan. Yemen also imports its 80 percent of rice from Pakistan.
Besides, Pakistan exports textile yarn and fabrics, articles for apparel cloth accessories, surgical instruments, petroleum products, tobacco, and pharmaceutical products to Yemen. Pakistan imports many goods including high diesel oil, kerosene, raw goat skin, machinery, gaseous hydrocarbon, liquid, raw sheep skin, turning shaving clips, furnace oil, acid oils, etc from Yemen.
Pakistan's trade relations with Yemen have been showing an upward trend with the passage of time and it would further strengthen if the agreed policies are implemented. As one of the obstacles for the trade activities between the two Islamic countries was the propaganda of security threats after the September 11, 2001 incident, sources said, the two sides would also discuss security co-operation, particularly fighting terrorism and exchanging experiences in the coming JMC session.
According to the sources the economic relations between Pakistan and Yemen have improved since the two countries signed a reciprocal trade agreement in 1999. Under the agreement the free transfer of capital, profits and returns in accordance with the relevant procedure benefited investors of both the countries. The forthcoming session is of significant importance for Islamabad, as it would seek more trade concessions from Yemen to cope with the devastating floods, which have affected the country's economy badly, sources said.