Pakistan eyes East African market with new sea trade corridors

Amid an escalating trade war following United States (US) President Donald Trump’s announcement of trade tariffs, Pakistan is setting its sights on expanding trade with the East African Community (EAC) with new sea trade corridors.

The East African Community, comprising eight countries – Burundi, Democratic Republic of the Congo, Kenya, Rwanda, Somalia, South Sudan, Tanzania, and Uganda – is home to more than 500 million people and a collective gross domestic product (GDP) of approximately $345 billion.

Pakistan’s total trade with Eastern Africa in the first 9 months of the current financial year (FY25) stood at $1.30 billion, according to the State Bank of Pakistan’s (SBP) data.

Pakistan exports to Eastern Africa stood at $617.12 million while imports were recorded at $688.20 million during the said period. Kenya remained the top destination for both imports and exports.

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In a statement on Saturday, Federal Minister for Maritime Affairs Junaid Anwar Chaudhry said new maritime trade corridors would be launched to enhance trade with the EAC.

“Our goal is to provide Pakistan’s industrialists, exporters and investors with a direct and efficient route to tap into the lucrative East African market.

“This strategic initiative will not only bolster our export potential but will also contribute to Pakistan’s economic growth by opening new avenues for trade and investment,” he said.

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The minister emphasised that the establishment of new maritime corridors would serve as a catalyst for enhancing bilateral trade relations between Pakistan and the EAC member states, which are “undergoing rapid economic growth, present a substantial trade opportunity, particularly in agriculture, textiles, manufacturing, and technology sectors”.

To ensure the successful implementation of the plan, Junaid Anwar Chaudhry added, an inter-ministerial consortium would be formed of relevant ministries including other stakeholders.

“These institutions will operate under a comprehensive coordinated framework to provide integrated support in areas such as trade, finance, diplomacy, and technology,” the minister explained.

“This collaborative effort will make certain that Pakistani businesses have the necessary tools and support to succeed in the East African market.”

Chaudhry further said the first phase of the plan involved the establishment of a direct shipping line connecting Karachi Port to Djibouti, a key gateway to East Africa.

“Djibouti serves as a critical logistics hub for the region, offering easy access to ports in neighboring countries, including Somalia and Ethiopia.

“The launch of the Karachi-Djibouti shipping line will significantly reduce transit times and costs, enabling Pakistan to export goods more efficiently and at a competitive rate,” the minister said.

Meanwhile, the second phase of the plan would see the full development of Gwadar Port, transforming it into a long-term export hub specifically designed to cater to the African market as well.

“Gwadar, located strategically on the Arabian Sea, holds immense potential to become a cornerstone of Pakistan’s maritime trade network, offering direct access to both the Middle East and Africa,” the minister said.

He outlined the positive impact of the new trade corridors, expressing confidence that the targeted export goals would be met.

The minister emphasised that increased exports would present a major economic opportunity for Pakistan, not only by boosting revenue but also by deepening ties with East African nations.

“Pakistan has a strong industrial base, and our products, ranging from textiles and agricultural goods to pharmaceuticals and machinery, are in high demand in East Africa. Our aim is to provide a direct and efficient pathway for these goods to reach consumers across the region, while also fostering long-term partnerships with EAC nations,” he said.

Earlier this month, US President Trump ignited a potentially ruinous global trade war Wednesday as he slapped sweeping tariffs on imports from around the world and harsh additional levies on key trading partners.

Trump imposed 29% reciprocal tariff on Pakistan, besides over 185 countries and territories, saying that Islamabad charges 58% tariff on goods imported from the US.

Last week, Pakistan government said it would send a high-level delegation to the US to promote trade relations and hold talks on the reciprocal tariff.

Asian governments, including Pakistan’s, might buy more US oil and gas as they scramble to lower their trade surplus with Washington in hopes of easing their tariff burdens under Trump’ new import duties, Reuters reported on Thursday.

Amid rising global trade tensions, Pakistan’s pivot toward the East African market through new maritime trade corridors marks a strategic move to diversify its exports and safeguard its economic interests.