ISLAMABAD: Pakistan and the United Arab Emirates are on the verge of signing a Comprehensive Economic Partnership Agreement, a landmark deal poised to transform bilateral economic relations by removing trade barriers and unlocking substantial growth potential. United Arab Emirates Ambassador Hammad Obaid Ibrahim Salem Al-Zaabi announced this development during an address at the Lahore Chamber of Commerce and Industry, highlighting that the agreement is in its final stages. The current bilateral trade stands at approximately eight to ten billion dollars annually, a figure the ambassador described as not fully reflecting the depth of fraternal ties between the two nations. He expressed strong commitment from the UAE government to double this volume in the near future, potentially reaching sixteen to twenty billion dollars.
The forthcoming CEPA is expected to address longstanding impediments in trade and investment flows. By reducing tariffs, harmonizing standards, and facilitating easier market access, the pact will benefit exporters and importers on both sides. Pakistan's exports to the UAE, valued at around two point one billion dollars in the fiscal year twenty twenty-four to twenty twenty-five, primarily include textiles, rice, and leather goods. In contrast, imports from the UAE, amounting to roughly eight billion dollars, are dominated by petroleum products and other energy-related commodities. This trade imbalance underscores the urgency for diversified exchanges under the new framework.
Ambassador Al-Zaabi emphasized the UAE's rapid transformation into an AI-driven and digitized economy, where nearly ninety-nine percent of government services are now accessible online. This shift offers opportunities for collaboration in digital infrastructure and e-governance. Both countries are actively working to streamline visa processes through advanced digital systems, which will ease business travel and skilled labor mobility. Discussions with the Punjab Skilled Labour Authority are advancing to promote cooperation in workforce development and deployment, addressing labor market needs in the Gulf region.
The ambassador underscored his personal involvement at operational and technical levels to guarantee full implementation of existing and forthcoming agreements. This hands-on approach reflects the UAE's dedication to translating commitments into tangible outcomes. Beyond trade, the UAE is intensifying investments across strategic sectors in Pakistan. Key areas include infrastructure development, port modernization, aviation expansion, agriculture enhancement, mineral exploration, and railway upgrades. Recent engagements with Pakistan's Railway Ministry indicate progress toward supply chain connectivity projects, including potential dry port facilities linking northern regions to Karachi.
These investment initiatives align with broader efforts to strengthen economic interdependence. The UAE has historically been a major investor in Pakistan, contributing significantly to energy, logistics, and real estate. Enhanced cooperation in minerals and agriculture could leverage Pakistan's natural resources and arable land, while aviation and ports projects promise improved connectivity and efficiency. Such diversification will help mitigate risks associated with over-reliance on traditional trade items and foster sustainable growth.
The announcement has generated optimism within Pakistan's business community. Leaders at the Lahore Chamber of Commerce and Industry welcomed the envoy's remarks, noting the UAE's role as a vital trading partner and a leading source of remittances. Remittances from over one million Pakistanis in the UAE reached substantial figures in recent years, supporting household incomes and foreign exchange reserves. The CEPA is anticipated to create new avenues for joint ventures, technology transfer, and private sector collaboration.
Experts view the agreement as timely amid global economic uncertainties. For Pakistan, it represents a chance to bolster export competitiveness and attract foreign direct investment. The UAE, pursuing economic diversification beyond oil, sees Pakistan as a strategic partner with a large consumer market and skilled human capital. Streamlined procedures and reduced obstacles will encourage more Emirati firms to explore opportunities in manufacturing, services, and renewable energy.
As negotiations conclude, both sides are poised for a new chapter in their relationship. The CEPA will not only elevate trade volumes but also deepen strategic ties built on mutual respect and shared interests. Implementation will require coordinated efforts to ensure benefits reach businesses and citizens alike.
