UAE investment and trade with Pakistan stands out

[Salman]

UAE investment and trade with Pakistan stands out


While world is beset with financial and business crisis, the UAE investment and trade with Pakistan stand out. Their relations are booming. Investors and businessmen of the UAE have just unveiled plans to invest more in Pakistan, and enlarge the two-way foreign trade.

The plans were made known at the just concluded conference of chief executive officers (CEOs) and directors of investment corporations and joint venture companies, investing in Pakistan.

Iran, too, is going to step up its economic cooperation with Pakistan, including new joint ventures, and trade, according to high level decisions just announced.

Pakistani Commerce Minister Makhdoom Amin Fahim has applauded the investment and trade levels between the UAE and Pakistan. “But, the scope of enhancing both investment flows and trade on a still higher level does exist. The leadership of the two countries is earnestly trying to expand them,” Fahim said in his address at the conference. The UAE Ambassador to Pakistan, Eissa Abdullah Al Basha Al Noaimi, in his address, spoke highly of the already existing investment and trade relations, and outlined the scope for further expansion.

The UAE-Pakistan current bilateral trade is $7.6 billion, while 27 companies of Pakistan and the UAE are working together in joint ventures. The value and size of the joint ventures is $21 billion, Ambassador Al Noaimi informed the conference. “The UAE firmly believes in the importance of strengthening economic coordination with Pakistan, as this country provides suitable environment for investment, he also emphasised. The UAE-Pakistan relationship is a model one, thanks to its solid foundations and diversification, which covers different fields. We consider the meeting of the businessmen and investors of both the countries will further provide the common ground to discover and make use of more investment opportunities,” the Al Noaimi said. “The UAE leadership, including the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and Foreign Minister Shaikh Abdullah bin Zayed Al Nahyan are taking personal interest in enhancing ties with Pakistan.”

The UAE investment in Pakistan covers several sectors, including telecom, aviation, navigation, banking real estate and energy, while more are being constantly added.

The UAE-Pakistan talks in Islamabad were immediately followed by the visit of a high-level Iranian team led by Ali Saeedlou, Vice-President for International Affairs. In the talks between the Iranian team, Pakistan’s President Asif Ali Zardari and Adviser Finance Abdul Hafeez Shaikh, the two sides set a $5 billion a year target for their mutual trade. It will more than triple the volume of trade from the present $1.5 billion a year, by “exploring new avenues of business cooperation.” The announcement was made at the conclusion of Pakistan-Iran bilateral talks.

The two sides agreed to speed up completion of the ongoing projects, especially Iran-Pakistan Gas Pipeline and supply of Iranian electricity to Pakistan, which will start with 1,000 megawatts and will help this country overcome its present energy crisis.

Hafeez Shaikh said: “both the countries have a huge trade and investment potential, as well as capacity to launch joint ventures, which need to be exploited for the benefit of their people.”

Pakistan has identified several sectors for Iranian investment, including IT and manufacturing industries as “priority one.” Other sectors include energy and livestock development. The two sides also decided to promote cooperation in transportation, customs and financial and banking services.

Iran and Pakistan will also promote trade in commodities, including rice, fruits and vegetables. They agreed to remove many tariff and non-tariff barriers on mutual trade and to provide incentives to the private sector for expanding trade.