Pakistan and the Gulf Cooperation Council (GCC) have signed a preliminary free trade agreement (FTA). The agreement was signed at the headquarters of the GCC General Secretariat in Riyadh, with the GCC Secretary General and Pakistan’s Minister of Commerce putting pen to paper. Extensive discussions were initiated last year to enhance Pakistan’s exports to GCC countries, which include economic heavyweights like Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait.
The Gulf Cooperation Council is a regional organization amongst Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The GCC has multiple goals including economic cooperation and development, joint defense
Pakistan’s business leaders and trade experts have hailed this development, expecting it to open up new avenues for exports and bolster trade between Pakistan and the GCC nations. The FTA is anticipated to address existing trade barriers, making Pakistani products more competitive in the Gulf market, a region known for its growing economic opportunities.
In addition to fostering trade, Pakistan has been actively seeking foreign direct investment, particularly from Gulf countries. The sectors of agriculture, mining, information technology, defense production, and energy have been identified as top priorities for investment. To facilitate this, Pakistan established the Special Investment Facilitation Council (SIFC), a platform designed to expedite decision-making and promote foreign investment, especially from Gulf nations.
The SIFC has attracted significant attention from international investors, notably from Middle Eastern countries. Expectations are high that the FTA will pave the way for agreements and joint ventures in key sectors such as agriculture, information technology, mining, energy, and defense production. These ventures are expected to not only boost Pakistan’s export growth but also attract substantial investments from GCC countries, aligning with the objectives of the SIFC.
The signing of this preliminary free trade agreement between Pakistan and the GCC signifies a momentous step in their economic cooperation. With a commitment to removing trade barriers and fostering investment, both parties are poised to benefit substantially from this collaboration. As Pakistan strives to achieve its export growth targets and address economic challenges, this agreement opens up new opportunities for growth and prosperity, not only for Pakistan but also for its GCC counterparts in the rapidly evolving Middle Eastern economic landscape.
Author: Aleksandros Spaho
