Trade with Saudi Arabia increases as Pakistan’s Gulf exports surge 26.6% in current fiscal year

National flags of Saudi Arabia and Pakistan hoisted in Islamabad, Pakistan, on February 16, 2021 (AN photo)
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Updated 27 December 2023
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Trade with Saudi Arabia increases as Pakistan’s Gulf exports surge 26.6% in current fiscal year

  • Pakistan has been focusing on GCC countries to strengthen its economy and increase foreign investment
  • State Bank of Pakistan records 50 percent rise in trade with Saudi Arabia and 33 percent with the UAE

KARACHI: Pakistan’s exports to the Gulf region witnessed a significant increase of 26.6 percent in the first five months of the current fiscal year, according to the central bank data released this month, with 50 percent rise in its trade with Saudi Arabia and 33 percent with the United Arab Emirates.

The country established the Special Investment Facilitation Council (SIFC) – a civil-military hybrid forum – in July to fast-track decision-making and promote investment from foreign nations, particularly from the Gulf countries.

Pakistan also announced in September it had signed a “preliminary” free trade agreement with the Gulf Cooperation Council (GCC) and described it as a “milestone in both sides’ economic cooperation.”

According to the State Bank of Pakistan, the country’s trade with Saudi Arabia touched $275.7 million between July and November as compared to $183.7 million in the corresponding period last year.

The quantum of Pakistan’s trade with the UAE also increased significantly from $614.9 million to $818 million during these months.

However, the country’s trade with Qatar, Bahrain and Oman witnessed reduction of 16.5, 6.3 and 6.2 percent, respectively.

With Pakistan beginning to focus more on Kuwait, its trade with the Gulf country went up by 7.4 percent from $48.2 million to $51.8 million.

Caretaker Prime Minister Anwaar-ul-Haq Kakar went to the Middle East on a week-long visit in November to explore economic opportunities for his country and seek foreign investment.

During his stay in the region, he signed deals worth billions of dollars in the United Arab Emirates and Kuwait, though their impact is likely to become clear in the coming months.

Pakistani officials have sought early implementation of its free trade agreement with the GCC, hoping it to be a major “turning point” for the country’s economy.


Pakistan offers Kyrgyzstan Arabian Sea access as two states sign 15 cooperation accords

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Pakistan offers Kyrgyzstan Arabian Sea access as two states sign 15 cooperation accords

  • Pakistan and Kyrgyzstan sign MOUs spanning trade, energy, agriculture, ports, education, security cooperation
  • Kyrgyz president is on first visit to Pakistan in 20 years as both sides push connectivity and CASA-1000 power links

ISLAMABAD: Pakistan on Thursday offered Kyrgyzstan the shortest and most economical route to the Arabian Sea as the two countries signed 15 agreements and memoranda of understanding aimed at boosting cooperation across trade, energy, agriculture, education, customs data-sharing and port logistics.

The accords were signed during a visit to Islamabad by President Sadyr Zhaparov, the first by a Kyrgyz head of state to Pakistan in two decades, and part of Islamabad’s renewed push to link South Asia with landlocked Central Asian economies through ports, power corridors and transport routes.

For Pakistan, Kyrgyzstan offers access to hydropower through CASA-1000, a $1.2 billion regional electricity transmission project designed to carry surplus summer electricity from Kyrgyzstan and Tajikistan through Afghanistan into Pakistan. For Bishkek, Pakistan provides overland access to warm-water ports on the Arabian Sea, creating a shorter commercial route to global markets.

“President Asif Ali Zardari has reiterated Pakistan’s readiness to offer Kyrgyzstan the shortest and most economical route to the Arabian Sea,” Radio Pakistan reported after Zhaparov met the Pakistani president. 

The two leaders also discussed expanding direct flights to deepen business, tourism and people-to-people ties.

Zardari welcomed Kyrgyzstan’s completion of its segment of the CASA-1000 project and “reaffirmed Pakistan’s commitment to completing its part of the project, which is now at an advanced stage,” the state broadcaster said. 

Zhaparov thanked Islamabad for supporting Bishkek’s candidacy for a non-permanent UN Security Council seat and invited Zardari to visit Kyrgyzstan at a time of his convenience. Both sides expressed satisfaction with progress under the Quadrilateral Traffic in Transit Agreement, designed to facilitate road movement between Pakistan, Kyrgyzstan, Kazakhstan and China.

Earlier, both governments exchanged 15 sectoral cooperation documents covering commerce, mining, geosciences, power, agriculture, youth programs, the exchange of convicted persons, customs electronic data systems and a sister-city linkage between Islamabad and Bishkek.

According to APP, the MOUs were signed by ministers representing foreign affairs, commerce, economy, energy, power, railways, interior, culture, health and tourism. Agreements also covered cooperation between Pakistan’s Foreign Service Academy and the Diplomatic Academy of Kyrgyzstan, as well as collaboration between universities, youth ministries and cultural institutions.

“Our present mutual trade, comprising of about $15–16 million will be enhanced to $200 million in the next two years,” Prime Minister Shehbaz Sharif said after the agreements were signed, calling them “a framework for structured, result-oriented engagement and closer institutional linkages.”

Sharif said Pakistan was ready to serve as a maritime outlet for the landlocked Central Asian republic, offering access to Karachi, Port Qasim and Gwadar to help Kyrgyz goods reach regional and global markets.