https://arab.news/29hzx
- Pakistan’s exports to the UAE reached $1.59 billion during the last financial year, according to official figures
- Pakistan’s diplomatic mission wants to set up the Pak-UAE Joint Business Council to further increase commerce
ISLAMABAD: Pakistan plans to increase its exports to the United Arab Emirates to $2 billion by the end of the next fiscal year, one of its diplomats in the Gulf state said over the weekend, pointing to a progressive increase in bilateral trade over a five-year period.
The UAE is Pakistan’s third-largest trading partner after China and the United States, with a bilateral trade volume of nearly $5.6 billion during the fiscal year 2023-24. Of this, Pakistani exports to the UAE reached $1.59 billion, while its imports stood at $4 billion.
Additionally, with over 1.8 million of its nationals residing in the Arab state, the UAE is the second-largest source of remittances for Pakistan, contributing around $5.5 billion last year, which constituted nearly 18% of the country’s total remittances.
“Over the last five years, Pakistan’s exports to the UAE have shown a steady upward trend, rising from $1.09 billion in 2019-20 to $1.17 billion in 2020-21, $1.30 billion in 2021-22, $1.40 billion in 2022-23 and $1.59 billion in 2023-24,” Ali Zeb Khan, Trade and Investment Counselor at the Pakistan Consulate in Dubai, told Arab News over the phone.
“From $1.59 billion, we expect to increase our exports to $1.75 billion in this financial year [2024-25] and up to $2 billion in 2025-26,” he added.
Pakistan’s main exports to the UAE include rice, meat, fruits, vegetables, fish, frozen food, edible oil, dairy products, beverages, textile articles and footwear.
“Currently, Pakistan’s exports to the UAE are valued at $1.59 billion, while the actual potential is much greater than that,” Khan said.
He informed that based on trade data, patterns and market intelligence, key sectors and products had been identified for export enhancement to the UAE.
“These include agro-products such as cereals, rice, maize, meat, fresh fruits and vegetables, such as potatoes, onions, mangoes and citrus, seafood, spices, condiments, pickles, halal processed meat products, dairy and sugar confectionery,” he continued.
The Pakistani diplomat said other focused sectors included apparel and textile products, engineering goods such as electric fans, sports goods, surgical products, cutlery, plastics, iron and steel along with other minerals.
Asked about the challenges to the development of bilateral trade potential, he mentioned the insufficient availability of a centralized database of bilateral business entities and traders, saying it slowed down the pace of networking and business matching efforts.
“Another challenge is the non-existence of regional offices of sector-wise Pakistani Business Associations in the UAE … for collective and synergized efforts,” he said.
“The escalation in freight charges has also increased the cost of Pakistan’s major export commodities, such as textiles, rice, and fruits,” he continued.
Khan said the Pakistan mission had been in regular contact with the relevant authorities to increase the country’s exports to the UAE, seeking the establishment of the Pak-UAE Joint Business Council.
He informed that the mission was also working to arrange visits of business chamber delegations since the identification of potential sectors.
Khan pointed out that the UAE’s strategic location and ease of doing business had made it a vital global trade and transit hub, serving other markets in the Middle East and Africa.
“Since the UAE is also home to world-class trade events, Pakistan’s companies operating in various sectors also actively participate in many mega exhibitions like Gulfood, Arab Health, Gitex and ME Energy to showcase their products and make good business deals,” he continued while describing Pakistan’s trade with the Gulf state as “of utmost importance.”