ISLAMABAD: The government in Pakistan’s most populous Punjab province and the United Arab Emirates (UAE) have agreed to form a working group to promote bilateral cooperation, state-run media said on Tuesday.
The UAE is Pakistan’s third-largest trading partner after China and the United States and a major source of foreign investment. The Gulf country is also home to more than a million Pakistani expatriates and serves as an important source of workers remittances.
Pakistani policymakers consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
Punjab Chief Minister Maryam Nawaz met UAE’s Ambassador Hamad Obaid Ibrahim Salem Alzaabi in the eastern city of Lahore on Tuesday, Radio Pakistan said in a report.
“The UAE and Punjab government have decided to form a working group to further boost bilateral cooperation,” the report said. “During the meeting, both the sides discussed ways and means to boost economic cooperation, development projects in Punjab, and the promotion of tourism.”
Nawaz invited UAE investors to invest in Punjab and ensured special incentives and a conducive business environment for them, the state broadcaster said. The UAE envoy said that the Gulf country wants to work on additional projects in Pakistan, Radio Pakistan said.
“Hamad Obaid Ibrahim Salem Alzaabi said that the UAE is committed to promoting durable progress through public-private partnerships with the Punjab Government,” the report stated.
As Pakistan faces a prolonged macroeconomic crisis, it has reached out to Gulf countries in the past two years to attract international investment in vital economic sectors. In May, Pakistan announced that the UAE had committed $10 billion to invest in the country’s key economic sectors.
In January this year, Pakistan and the UAE signed multiple agreements worth over $3 billion for cooperation in railways, economic zones and infrastructure. In November, Pakistan and the UAE signed four Memoranda of Understanding (MoUs) covering customs, rail and airport infrastructure, maritime shipping and logistics sectors during a UAE delegation’s visit to Pakistan.