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Pakistan-Qatar economic relations

Pakistan-Qatar relations refer to the bilateral links between the Islamic Republic of Pakistan and the State of Qatar. Pakistan has an embassy in Doha while Qatar maintains an embassy in Islamabad and a consulate-general in Karachi.

Relations between the two are shaped by Pakistan’s generally close relations with the Arab world. Like other nearby Gulf states, there is a large Pakistani community in Qatar, which numbers over 50,000. They work in diverse fields and send remittances each year. During the 2010 Pakistan floods, Qatar provided timely assistance to the country.

Other than this, Qatar had assured the newly formed Government of Pakistan regarding investments in energy sector and also would help for Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC).

BILATERAL TRADE RELATIONS BETWEEN PAKISTAN AND QATAR

Both the countries have signed BIT in 2009 and DTT. According to the State Bank of Pakistan, Pakistan exported goods of worth $ 70.63 million to Qatar during Fiscal Year 2014-15 as against $80.56 million in the same period last year showing decline of 12%.

The goods imported by Pakistan from Qatar stood at $236.35 million during FY15 as against $199.08 million in the same period last year.

TRADING COMMODITIES BETWEEN PAKISTAN AND QATAR

Trading commodities between Pakistan and Qatar are cereals, fertilizers, mineral fuels, iron, steel, organic chemicals, meat and edible meat offal, plastics , articles of leather, animal gut, harness and travel goods, etc.

POTENTIAL FOR ENHANCING BILATERAL TRADE RELATIONS BETWEEN QATAR AND PAKISTAN

There is sufficient trade potential that exists between the two countries. If Pakistan utilizes the DTT and BIT well, it can reap much more exports from Qatar in the textile sectors.

ECONOMY OF QATAR

Qatar is an independent state with significant oil and natural gas revenues. During the late 1980s and early 1990s, the Qatari economy was crippled by a continuous siphoning off of petroleum revenues. In 2001, Qatar resolved its longstanding border disputes with both Bahrain and Saudi Arabia. As of 2007, oil and natural gas revenues had enabled Qatar to attain the highest per capita income in the world.

Qatar has not experienced the level of unrest or violence seen in other near Eastern and North African countries in 2010-11, due in part to its immense wealth. Qatar’s international image is bolstered, which has provided comprehensive coverage of the Near East and North African Arab revolutions.

Additionally, Qatar played a significant role in the Libyan revolution by pressing the Gulf Cooperation Council and the Arab League to assist the Libyan rebel movement.

ECONOMY OF QATAR

Qatar has prospered in the last several years with continued high real GDP growth. Throughout the financial crisis, Qatari authorities sought to protect the local banking sector with direct investments into domestic banks. The country’s economic policy is focused on developing Qatar’s non-associated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues.

Oil and gas have made Qatar; the world’s highest per-capita income country and the country with the lowest unemployment. Proved oil reserves in excess of 25 billion barrels should enable continued output at current levels for 57 years. Qatar’s proved reserves of natural gas exceed 25 trillion cubic meters, more than 13% of the world total and third largest in the world.

Qatar’s successful 2022 World Cup bid is likely to accelerate large-scale infrastructure projects such as Qatar’s metro system, light rail system, and the Qatar-Bahrain causeway.

KEY INDUSTRIES OF QATAR

The key industries of Qatar includes Liquefied Natural Gas, crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement and commercial ship repair.

QATAR’S MAJOR TRADING COMMODITIES AND PARTNERS

Major export commodities of Qatar are liquefied natural gas (LNG), petroleum products, fertilizers, steel which it export to its key partners Japan (26.6%), South Korea (19%), India (12%), Singapore (5.7%), China (5.4%). Major import commodities of Qatar are machinery and transport equipment, food, chemicals while its major importing partners are US (14.2%), UAE (11%), Saudi Arabia (8.3%), UK (6.4%), Japan (6%), China (4.8%), Germany (4.7%), Italy (4.4%) and France (4.4%).

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