UAE eyes ‘comprehensive’ economic agreement with Pakistan to promote bilateral trade, exports

A general view of sea port in Karachi, Pakistan on January 11, 2023. (AFP/File)
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Updated 03 August 2023
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UAE eyes ‘comprehensive’ economic agreement with Pakistan to promote bilateral trade, exports

  • UAE deputy head of mission calls for enhancing business-to-business ties with South Asian country 
  • Says Pakistan ‘most favorable’ country for tourism, urges improving Pakistani tourism infrastructure

ISLAMABAD: The United Arab Emirates (UAE) is working to sign a ‘Comprehensive Economic Partnership Agreement’ with Pakistan, a UAE diplomat said on Thursday, adding that it would create opportunities to enhance bilateral trade and exports between both countries.

The UAE is Pakistan’s third-largest trade partner after China and the United States. It is also viewed as an ideal export destination by policymakers in the South Asian country due to its geographical proximity which reduces transportation and freight costs and facilitates commercial exchanges.

The Gulf country is also home to an estimated 1.5 million Pakistani expatriates and the second-largest source of remittances for the South Asian nation, after Saudi Arabia.

“The United Arab Emirates (UAE) was working to sign a Comprehensive Economic Partnership Agreement (CEPA) with Pakistan that would create many new opportunities for the entrepreneurs of both countries to promote bilateral trade and exports,” Rashid Abdul Rehman Al Ali, deputy head of Mission of the UAE embassy, told members of the Pakistani business community during his visit to the Islamabad Chamber of Commerce and Industry (ICCI). 

According to a press release issued by the ICCI, Ali said he was “quite optimistic” about Pakistan’s economic future, given that the South Asian country was receiving Foreign Direct Investment (FDI) from Saudi Arabia, UAE, China, and Qatar. 

The diplomat said that the UAE wanted to further promote investment with Pakistan with a focus on agriculture, textiles, marble & tiles, gemstone, mining, and petroleum. Ali called for enhancing government-to-government and business-to-business relations between both countries. 

“He said that Pakistan was the most favorable country for tourism and that an improved tourism infrastructure would attract more tourists,” the ICCI said. 


Pakistan’s military chief Asim Munir in spotlight over Trump’s Gaza plan

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Pakistan’s military chief Asim Munir in spotlight over Trump’s Gaza plan

  • Sources say Munir is expected to visit Washington in the coming weeks for talks with the US president on Gaza
  • Any Pakistani troop role in Gaza could trigger backlash from pro-Palestine, anti-US groups at home, analysts say

ISLAMABAD: Pakistan’s most powerful military chief in decades faces the toughest test of his newly amassed powers as Washington pushes Islamabad to contribute troops to the Gaza stabilization force, a move analysts say could spark domestic backlash.

Field Marshal Asim Munir is expected to fly to Washington to meet President Donald Trump in the coming weeks for a third meeting in six months that will likely focus on the Gaza force, two sources told Reuters, one of them a key player in the general’s economic diplomacy.

Trump’s 20-point Gaza plan calls for a force from Muslim nations to oversee a transition period for reconstruction and economic recovery in the war-torn Palestinian territory, decimated by over two years of Israeli military bombardment.

Many countries are wary of the mission to demilitarize Hamas in Gaza, which could drag them into the conflict and enrage their pro-Palestinian and anti-Israeli populations.

But Munir has built a close relationship with the mercurial Trump to repair years of mistrust between Washington and Islamabad. In June, he was rewarded with a White House lunch — the first time a US president hosted Pakistan’s army chief alone, without civilian officials.

“Not contributing (to the Gaza stabilization force) could annoy Trump, which is no small matter for a Pakistani state that appears quite keen to remain in his good graces — in great part to secure US investment and security aid,” said Michael Kugelman, Senior Fellow, South Asia at Washington-based Atlantic Council.

‘PRESSURE TO DELIVER’

Pakistan, the world’s only Muslim country with nuclear weapons, has a battle-hardened military having gone to war with arch-rival India three times and a brief conflict this summer. It has also tackled insurgencies in its far-flung regions and is currently embroiled in a bruising war with militants who it says are operating from Afghanistan.

Pakistan’s military strength means “there is a greater pressure on Munir to deliver his capacity,” said author and defense analyst Ayesha Siddiqa.

Pakistan’s military, foreign office and information ministry did not respond to questions from Reuters. The White House also did not respond to a request for a comment.

Pakistani Foreign Minister Ishaq Dar said last month that Islamabad could consider contributing troops for peacekeeping but disarming Hamas “is not our job.”

UNPRECEDENTED POWER

Munir was earlier this month anointed chief of the defense forces to head the air force and navy as well, with a job extension until 2030.

He will retain his field marshal title forever, as well as enjoy lifetime immunity from any criminal prosecution under the constitutional amendments that Pakistan’s civilian government pushed through parliament late last month.

“Few people in Pakistan enjoy the luxury of being able to take risks more than Munir. He has unbridled power, now constitutionally protected,” Kugelman added.

“Ultimately, it will be Munir’s rules, and his rules only.”

THE HOME FRONT RISK

Over the past few weeks, Munir has met military and civilian leaders from countries such as Indonesia, Malaysia, Saudi Arabia, Turkiye, Jordan, Egypt and Qatar, according to the military’s statements, which Siddiqa said appeared to be consultations on the Gaza force.

But the big concern at home is that the involvement of Pakistan troops in Gaza under a US-backed plan could re-ignite protests from Pakistan’s religio-political parties that are deeply opposed to the US and Israel.

These parties have street power to mobilize thousands. A powerful and violent anti-Israel party that fights for upholding Pakistan’s ultra-strict blasphemy laws was banned in October.

Authorities arrested its leaders and over 1,500 supporters and seized its assets and bank accounts in an ongoing crackdown, officials said.

While Islamabad has outlawed the group, its ideology is still alive.

The party of former jailed premier, Imran Khan, whose supporters won the most seats in the 2024 national elections and has wide public support, also has an axe to grind against Munir.

Abdul Basit, Senior Associate Fellow, S. Rajaratnam School of International Studies in Singapore, said if things escalated once the Gaza force was on the ground, it would cause problems quickly.

“People will say ‘Asim Munir is doing Israel’s bidding’ — it will be foolhardy of anyone not to see it coming.”