Pakistan-UAE Business Council urges policy continuity as bilateral trade hits over $10b
Business
The UAE remains steadfastly positioned as Pakistan’s third-largest trading partner after China and the United States, according to the PUBC.
KARACHI (Web Desk) - The Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) Pakistan-UAE Business Council (PUBC) on Saturday called for sustained policy momentum to realize the full potential of bilateral investment and trade flows as bilateral trade surged to $10.1 billion in fiscal year 2024-25.
The UAE remains steadfastly positioned as Pakistan’s third-largest trading partner after China and the United States, according to the PUBC. The economic stability afforded by the 1.8 million-strong Pakistani diaspora in the UAE is evident, with remittances projected to exceed $7 billion in 2025, a vital component stabilizing Pakistan’s external account.
In a statement issued on Saturday, PUBC Chairman Diwan Fakhruddin the relationship between Pakistan and the UAE is transitioning from a fraternal bond to a sophisticated, mutually beneficial economic partnership, driven by deliberate policy reforms.
“However, the persistent trade imbalance (imports significantly outweighing Pakistan’s $2.1 billion exports in FY25) advocates for concerted efforts to diversify Pakistani exports into the UAE market, focusing on value-added textiles, specialized agricultural products, and IT/ITeS services,” he said.
Fakhruddin highlighted the success of a high-level policy mechanism and the recent shift in the UAE’s investment focus.
He urged the government to address all residual regulatory impediments to guarantee successful implementation of these investment projects.
The Gulf nation is a major source of foreign investment in Pakistan valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
Both countries have stepped up efforts in recent years to strengthen their economic relations. In Jan. 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure.
