Pakistan’s economic outreach to the Gulf

Pakistan’s current economic interaction with the Gulf Co-operation Council (GCC) member states is far below its real potential. If trade is taken as a barometer, the balance of trade is heavily tilted against Pakistan. Total annual exports close to five billion dollars plus are nowhere near true potential. 

Pakistani manpower working in these countries does to some extent fill the gap between imports and exports through remittances. But these remittances cannot be taken as a permanent factor. Instead, there are some untapped, underutilized areas that can be relied upon to correct the imbalance and make economic interaction fruitful for both sides. New avenues have to be explored.

The government of Pakistan has started a well- planned economic outreach campaign in the GCC countries focusing on transitioning from a relationship based on financial aid and labor export to one centered on investment, trade and strategic partnerships. The Special Investment Facilitation Council (SIFC), created to fast track investments from friendly nations, has identified 28 major projects for Gulf investors focusing on mining, energy, agriculture, information technology and construction. The Pakistan-GC Free Trade Agreement is in its final stages of negotiations and will give a much required boost for Pakistani exports to its member countries.

In a highly competitive international labor market, Pakistani workers should be second to none.

Javed Hafeez

 

 It is clear that the way to sustainable development passes through growing exports and foreign direct investment flows. Current Pakistan exports to the GCC countries include textiles, rice, meat, fruits and vegetables. Most of these items have limited price ranges and little value addition. Any quantum jump in Pakistani exports to the Gulf would demand the diversification of items and the inclusion of higher-priced products. One such item could be the fighter aircraft recently displayed at the World Defense Show in Riyadh. 

Information technology is another promising field for Pakistan which has shown an impressive export growth rate recently. At the same time, the production volume and exportable surplus of traditional items can be increased through GCC investments in agriculture, dairy farming and livestock. 

 Compared to Philippino and Indian workers in the Gulf, the per capita remittance of their Pakistani counterparts is a bit lower. It is necessary to educate Pakistani workers about the desirability of using banking channels to the maximum. It is also necessary to improve the technical skills of workers going to the Gulf. Philippines has been a leader in introducing the concept of ‘handyman’ in these countries; one person with multiple skills. 

In a highly competitive international labor market, Pakistani workers should be second to none.

Pakistan is actively enhancing its trade presence in the GCC countries through its Trade Development Authority, with a focus on diversification. New areas are health, information technology, beauty and processed food items. Pakistan has taken part in several exhibitions through its companies all over the GCC countries. In fact, 40 Pakistani companies displayed their medical devices, surgical goods recently at the World Health Exhibition 2026 in Dubai earlier this year. Last year, the Made in Pakistan Exhibition and Business Forum 2025 was also held at the Jeddah International Exhibition and Convention Center. It was a major effort to boost trade with the Kingdom and over a hundred Pakistani companies exhibited their products. Non-traditional items included engineering, information technology services and construction materials.

 The World Defense Show in Riyadh has become a well-known annual international event. The Pakistan pavilion was the center of attention this year as it displayed its JF-17 Thunder fighter aircraft, which has resulted in great global interest due to its performance and reasonable price tag. The Pakistan Air Force contingent took part in this defense exhibition and displayed its air power while flying the Chinese-collaborative, locally made aircraft. And since the Kingdom plans to spend 50 percent of its defense budget locally by 2030, the objective could be achieved in collaboration with Pakistan considering its expertise in defense production.

 Pakistan has had excellent political relations with GCC countries. Government-to-government and people-to-people equations have both been of high quality. Defense co-operation, identical views on many international issues and a common objective of keeping sea lanes secure have added a distinct flavor to these ties. A robust economic relationship will add more strength and depth and make the bond wholesome.

 The envisaged GCC investments in corporate farming, mining and defense production would be hugely beneficial mutually. These will create jobs in Pakistan, promote food security on both sides and extract mineral wealth for industrial use. They can also learn a lot from one another by jointly managing investments. Their geographic proximity augers well for a blossoming trade and economic relationship.

 However, a thriving economic relationship requires regional peace and stability. Weakness invites aggression and eternal vigilance is required to protect and preserve both liberty and freedom.