Pakistan signs D-8 dispute mechanism in Egypt, calls for activating preferential trade deal

Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, addresses the Fourth D-8 Trade Ministers Council in Cairo, Egypt, on December 8, 2025. (Commerce Ministry)
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Updated 03 December 2025
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Pakistan signs D-8 dispute mechanism in Egypt, calls for activating preferential trade deal

  • Pakistan urges D-8 members to expand digital trade, logistics connectivity and private-sector partnerships
  • Jam Kamal Khan says the bloc must respond collectively to supply-chain disruptions, climate-related shocks

KARACHI: Pakistan has signed the Developing-8 (D-8) dispute settlement mechanism, an official statement said on Wednesday, as its commerce minister urged member states to operationalize the bloc’s preferential trade agreement (PTA) and expand cooperation in digital trade to boost regional economic integration.

The eight-nation grouping, founded in 1997 by Indonesia, Malaysia, Bangladesh, Pakistan, Iran, Türkiye, Egypt and Nigeria, aims to promote economic cooperation among large Muslim-majority developing states, though progress has often been uneven.

Commerce Minister Jam Kamal Khan made the remarks at the Fourth D-8 Trade Ministers Council in Cairo, where delegations met to review trade commitments and discuss the PTA’s implementation.

“The signing of the protocol — together with the operationalization of the PTA among D-8 member states — is expected to further enhance trade, facilitate smoother economic engagement and support the long-term vision of a more integrated D-8 economic bloc,” the commerce ministry said.

“Jam Kamal Khan stressed the urgency for regional platforms like the D-8 to respond collectively to rising protectionism, supply chain disruptions, climate-related shocks and commodity market volatility,” it added. “Strengthened cooperation, he noted, is essential to maintain resilience, sustain trade flows and foster market confidence.”

Khan also welcomed Azerbaijan’s accession as the grouping’s ninth member, calling its inclusion a boost to the bloc’s economic potential.

He emphasized the need to make the PTA fully functional, saying Pakistan was committed to harmonizing procedures, resolving operational hurdles and streamlining documentation to expand intra-D-8 trade.

The minister called for stronger institutional linkages in customs cooperation, standardization, mutual recognition and logistics connectivity to unlock regional trade.

He added that efficient transport corridors, predictable transit systems and deeper digital integration were critical for competitiveness.

Khan also urged member states to strengthen private-sector collaboration through joint ventures, technology partnerships and sector-specific cooperation.

He identified food security, textiles, agriculture, energy and technological innovation as priority areas for joint work aligned with sustainable development goals.

“Together,” he said according to the statement, “with the right policies and a strong spirit of partnership, we can transform the D-8 region into a dynamic center of trade, development, and opportunity for all our peoples.”


Saudi Arabia leads Pakistan’s foreign remittances for January as inflows surge by 15.4%

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Saudi Arabia leads Pakistan’s foreign remittances for January as inflows surge by 15.4%

  • Pakistan received $3.5 billion in remittances in January, with Saudi Arabia leading inflows with $739.6 million
  • Foreign remittances are crucial in increasing Pakistan’s foreign reserves, stabilizing cash-strapped nation’s currency

KARACHI: Pakistan received $3.5 billion in foreign remittances in January 2026, the central bank said on Tuesday, with Saudi Arabia once again leading the inflows that Islamabad considers crucial to ensure economic stability. 

Foreign remittances are key for cash-strapped Pakistan as they increase foreign reserves, cushion the country’s current account and stabilize the national currency.

As per data released by the State Bank of Pakistan (SBP), foreign remittances increased 15.4% on a year-on-year basis in January 2026. 

“Workers’ remittances recorded an inflow of $3.5 billion during January 2026,” the SBP said in a statement. 

It added that cumulatively, with an inflow of $23.2 billion remittances increased by 11.3% during the July-January period of the current fiscal year. Last year, Pakistan reported receiving $20.9 billion during the same period.

Saudi Arabia remained the top source of foreign remittances in January with inflows recorded at $739.6 million, followed by the UAE with $694.2 million. The UK reported the third-highest inflows at $572.1 million while remittances from the USA totaled $294.7 million in January.

According to SBP data, remittances reached a record $38.3 billion in fiscal year 2024-25, up from about $30.3 billion the year before, reflecting strong labor migration to Gulf countries and improved formal banking channels. 
 
Millions of Pakistanis work abroad in Gulf countries, Europe and USA, sending money to their families in Pakistan to support them financially. Islamabad has attempted to take advantage of this development in recent years, encouraging the use of formal channels and cracking down on illegal money transfer systems such as hawala and hundi.