Pakistan and the United Arab Emirates have elevated their bilateral relations to higher levels at all political, economic and social levels, thanks to the dynamic leadership of both countries. The strong foundation of such privileged relations was laid by the founder of modern UAE late Sheikh Zayed bin Sultan Al Nahyan.
It continues to be patronised by H. H. Sheikh Khalifa bin Zayed Al Nahyan, the President of the UAE and H. H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President, Prime Minister and Ruler of Dubai together with the other Rulers of the Emirates. Pakistan has always valued its characteristic relationship with UAE which has been getting strength to strength with the passage of every year. It also encouraged people to people interaction.
Both the countries shared principal stances on the important regional and international issues and worked jointly for the Arab causes. Moreover, the government of Pakistan has been very positive towards the Gulf Co-operation Council. Pakistan supports UAE's efforts to restore the three islands from Iran through amicable settlement and maintain their national identity. Pakistan also showed solidarity with the UAE at the time of Iraqi invasion of Kuwait. Furthermore, both the countries want a durable peace in Afghanistan.
Pakistan was the first country to accord formal recognition to the establishment of the UAE's Federation in 1971. Bilateral relations and joint co-operation is going on an on steadily ever since. More than 1.2 million skilled and semi-skilled Pakistanis are working in UAE. Their working remittances are playing great contribution to the foreign reserves of Pakistan. The ongoing consultations and collaborations between the leadership of both the countries and frequent exchanges of high officials reflect the time-tested relations.
TRADE VOLUMES: The UAE is Pakistan's second largest trading partner and it is also the second largest source of home remittances from Pakistani expatriates working in UAE. Prospects of joint ventures and mutual co-operation are immense. Concrete efforts, frequent visits and exchange of business communities, sharing of information, data, and collaboration would be useful to increase the trade volumes.
Imports from UAE to Pakistan includes Petroleum and petrochemical products, iron ore and scrap wares, plastics, chemical products, non-ferrous metals-machines and spare parts of cars, ships and boats. Pakistan exports Nylon textiles, silk and wool - textile-rice-Cotton textiles Crochet-dye and textile-treatment requirements of fabrics and clothes, towels, marble and surgical instruments.
The increase in overall exports from Pakistan has come primarily from non-traditional exports items accounting for 67 percent of the increase followed by 35 percent from textile manufacturers and four percent from other manufacturers. Moreover, Pakistan also tries to have free trade agreement with the GCC countries.
PREFERRED AREAS OF INVESTMENTS: Telecommunication, construction, oil & gas, insurance, banking and aviation were the main sectors for the attraction of FDIs in the country. The good thing is that more and more UAE private companies are willing to make investments in different sectors of the economy. Pakistan has sought assistance from United Arab Emirates to overcome ongoing energy crisis in the country and for the development of airline industry. Pakistan also sought UAE's expertise in seaport sector, particularly for the functioning of Gwadar Port. It is suggested that agricultural transformation along with adequate power generation are the two critical areas for overcoming Pakistan's economic problems. In this connection, UAE can play a very important role.
JOINT VENTURES: There is great potential of having joint ventures in various fields so that the bilateral economic, commercial and cultural relations, between UAE and Pakistan, may be further strengthened. It is suggested that petroleum and petroleum products, aluminium products, agriculture (Horticulture, corporate agricultural farming, dairy farming and livestock), financial sector, housing (prefabricated houses and affordable low income houses) and power (Hyde) and alternative sources may provide an ideal platform for joint ventures between the two countries. It would be beneficial and a win-win situation for both the countries.
FRIENDS OF DEMOCRATIC PAKISTAN FORUM: Friends of Democratic Pakistan Group stands as an important forum to compliment Pakistan's efforts and strategies towards socio-economic development with an institutional role of the UAE. The UAE took the initiative for forming Pakistan Friends Group Forum together with the United States of America in New York, January 2008.
Recently, UAE Foreign Minister H. E. Sheikh Abdullah bin Zayed Al Nahyan affirmed that the UAE is committed to advance efforts for development and stability in Pakistan. He showed great commitment for the contribution of the UAE's private sector in shouldering the responsibility with governments of member states of FoDP. The UAE had pledged $300 million in the Tokyo donor conference in April 2009.
Economists are of the opinion that regular meetings on joint ministerial commission and follow-up of the signed MoUs and agreements between the two countries may bring dividends for both countries. They say that in order to increase the bilateral trade volumes and other related business activities, effective role of Pak-UAE Business Council, frequent visits of respective chambers of commerce, holding of exhibitions and expos, sharing of information among the business community and potential investors must be enhanced. The two countries can consider co-operation in the fields of education, alternative energy, science and technology fields.
Foreign Direct Investments: According to the data of SBP and BOI, the UAE is also one of the biggest investor in Pakistan. Pakistan has tremendous opportunities for investment in the core infrastructure development; electricity generation, or water desalination, providing technology for agricultural enhancement and also for processing and packaging of agricultural goods for export. The inflows of the UAE FDIs was US $592.2, 178.1 and 243.1 million in 2007-08, 2008-09 and 2009-10 respectively in Pakistan which contributed for the stability and sustainability of the macro-economy of Pakistan. According to the latest figures of the BOI, the total investment so far has reached $20 billion. The government of Pakistan has invited UAE's public and private sectors to invest in energy sector, airline and infrastructure.
Energy Needs: In order to help Pakistan meet its immediate energy needs, the first consignment of a 320MW duel fuel power plant gifted by the UAE arrived in Pakistan with the entire plant scheduled to reach in three phases by the beginning of November. The President of UAE H. H. Sheikh Khalifa bin Zayed Al Nahyan in his meeting with President Asif Ali Zardari earlier offered the power plant to Pakistan as a gift, keeping in view the serious energy shortage the country was facing. The signing ceremony was witnessed by President Asif Ali Zardari
The United Arab Emirates has inked in February 2009 a Memorandum of Understanding (MoU) to hand over a gas-fired power plant. This agreement was inked by Chairman of the Abu Dhabi Electricity and Water Authority (ADEWA) Sheikh Diyab bin Zayed Al Nahyan and Minister for Water and Power, Raja Pervez Ashraf. The Pakistan Electric Power Company (PEPCO) spokesman said the gift by the UAE government not only fulfils the commitment made by the late Sheikh Zayed bin Sultan Al-Nahyan, but also reflects the close and friendly ties between the two countries.
ECONOMIC RELATIONS: The two brotherly countries have common concerns/ perceptions on many regional and international issues. Frequent exchanges of high level visits and regular consultations reflect the strong, trustworthy and time-tested mutually beneficial relations over the years. The whole gamut of such relations can be further strengthened on boosting ties in economic, trade and investment, energy and defence co-operation.