Pakistan, Gulf states in final stages of talks on Free Trade Agreement — PM Sharif

Prime Minister Shehbaz Sharif chairs a review meeting on trade related matters in Islamabad on May 10, 2024. (Photo courtesy: PMO)

• Pakistan and the Gulf Cooperation Council signed a ‘preliminary’ FTA in September last year
• The development comes amid Pakistan efforts to boost trade to stabilize dwindling economy

ISLAMABAD: Pakistan and the Gulf states are in final stages of discussions regarding a Free Trade Agreement (FTA) between the two sides, Pakistani state media reported on Friday.
Pakistan and the Gulf Cooperation Council (GCC) signed a “preliminary” FTA in September last year, with the country’s commerce ministry calling it a “milestone in both sides’ economic cooperation.” The GCC also said the agreement represented “an important turning point in cooperation.”
In 2022, both sides held technical-level talks to examine the possibility of an FTA that could help Pakistan boost exports to the six-nation bloc, which includes Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait.
Presiding over a meeting on the trade sector, Prime Minister Shehbaz Sharif asked the authorities to formulate trade policies with the core objective of facilitating the country’s business sector, the state-run APP news agency reported.
“In the meeting, the prime minister was told that the discussion on the Free Trade Agreement between Pakistan and the Gulf states was in the final stage and transit trade agreements with Uzbekistan and Tajikistan had already been materialized,” the report read.
During a recent Pakistan-Saudi Business Conference, according to the report, around 450 business-to-business meetings were held and the volume of e-commerce trade was witnessing a constant increase, with the enlisting of over 3,000 firms on the Pakistan Trade Portal.
Pakistan has welcomed numerous foreign officials and business delegations in recent weeks, encouraging local partnerships and asking them to explore investment opportunities across various economic sectors.
A Saudi business delegation, consisting of senior representatives from nearly 35 companies, recently concluded its visit to Pakistan, during which the delegates held several business-to-business meetings. Additionally, Prime Minister Shehbaz Sharif met with a group of Japanese industrialists, urging them to invest in Pakistan’s nascent electric car industry.
The country is also expecting the visit of Saudi Crown Prince Mohammed bin Salman later this month, hoping it would bring several billion dollars in investment.
During the meeting on the trade sector, the prime minister called for steps to promote exports of non-traditional goods and instructed authorities for immediate payment of certified duty drawbacks to exporters, according to the APP report.
He instructed officials to ensure consultation with them during the policy-making and implement the deletion policy to uplift the auto sector.
“Prime Minister Shehbaz directed the relevant ministry to devise a comprehensive strategy to scrutinize the performance of trade and investment officers posted in Pakistan’s missions abroad by rewarding the good performers and removing the incompetent ones,” the report read further.
The development comes as Pakistan seeks a fresh bailout from the International Monetary Fund (IMF) to stabilize its dwindling economy after completing its $3 billion IMF bailout deal that helped avert a default last year.
The South Asian country currently has Free Trade Agreements with China, Malaysia, and Sri Lanka, but it still needs to increase exports to other trade destinations.