ISLAMABAD: Pakistan has finalized a strategy to enhance trade with Middle Eastern countries including Saudi Arabia but not via signing of pacts due to disagreement on template of Bilateral Investment (BIT), well-informed sources told Business Recorder.
Major economies of the Middle East are Saudi Arabia (GDP $ 1.108 trillion) UAE ($ 507 billion), Kuwait ($ 184 billion), Iraq ($264 billion) and Qatar ($ 237 billion).
Pakistan’s top 10 export destinations and export figures of FY 2023-24 are as follows; (i) UAE ($ 1.590 billion); (ii) Saudi Arabia ($ 698 million) ;(iii) Oman ($ 210 million); (iv) Qatar ($ 158 million); (v) Kuwait (127 million); (vi) Bahrain ($64 million); (vii) Yemen ($ 118 million); (viii) Iraq ($ 58 million); (ix) Jordan $ 39 million; and (x) Lebanon ($ 15 million).
NA body calls for enhancing trade ties in region
Pakistan-Middle East bilateral trade stood at $ 15.970 billion of which Pakistan’s exports share was only $ 3.080 billion.
Pakistan’s main imports from Middle East were: (i) petroleum oils and oils obtained from bituminous minerals, crude; (ii) petroleum oils and oils obtained from bituminous minerals (excluding crude), preparations $ 4.588 billion; (iii) petroleum gas and other gaseous hydrocarbons $ 3.6375 billion;(iv) polymers of propylene or of other olefins, in primary forms $ 525.2 million; (v) polymers of ethylene, in primary forms $ 525.2 million;(vi) ferrous waste and scrape, re-melting scrap ingots of iron or steel(excluding slag scale and others.
Pakistan’s major exports to Middle East during 2023-24 were: (i) rice ($ 564 million; (ii) meat of bovine animals, fresh or chilled $ 351.92 million; (iii) petroleum and oils and oils obtained from bituminous minerals (excluding crude) preparations containing $ 197.22 million; and (iv) men’s or boys’ suits, ensembles, jackets, blazers, trousers, bid and brace overalls, breeches $ 128 million, etc.
The sources said Government has held internal discussion on trade ties with Saudi Arabia on post-FTA negotiation and devise future strategy as FTA cannot be signed until BIT is finalised. The GCC members including Saudi Arabia and Qatar are eager for the finalisation of BIT before making any investment in Pakistan.
Restrictions on exports of seafood products from Pakistan to Saudi Arabia have been removed.
According to sources, single country exhibition in Saudi Arabia is scheduled on 5-7 February, 2025 whereas a ‘Lifestyle Show’ in Saudi Arabia in also on the cards in 2025.
A trade delegation from UAE is expected within a couple of weeks. Ministry of Commerce is tasked to engage and align leading business associations and chambers to get maximum benefit from the visiting business delegation.
UAE side has appreciated the work/progress made on the following sectors: (i) agri- 14 projects shared; (ii) mining; and (iii) finance.
The UAE side has communicated that the response of Pakistan’s Commerce Ministry is slow on Comprehensive Economic Partnership Agreement (CEPA), which needs to be expedited.
On proposed investment cooperation in the logistics sector, Ministry of Railways briefed the forum that following previous meeting instructions, they wrote to the Foreign Office on June 24, 2024 to engage the Ambassador of Pakistan in UAE to coordinate with DP World for sharing the commercial agreement.
On July 19, 2024, the Ministry of Foreign Affairs requested clarifications on the project which was provided by Ministry of Railways along with all necessary data to apprise the Ambassador.
The sources said process for creation of Joint Working Groups (JWGs) has been started with Iraq, Kuwait, Jordan, Oman and Yemen. Meeting of Joint Ministerial Commission with Iraq and JWG with Syria are expected very soon. Trade delegation to Iraq and Syria are in pipeline. Planning of 18th OIC Trade fair is in process in December 2024.
The sources further stated that three new Missions at Iraq, Kuwait and Oman have been approved. Work is being done on list of concessions with OIC countries.
Copyright Business Recorder, 2024
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