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Pakistan and UAE nexus on the corridor of high trade volume

Experts highlight that United Arab Emirates (UAE) has a society which conjoins greater than 200 nationalities and they also added Pakistan’s contribution in the development of the country by living in peace and harmony. It is also explained that 1.6 million Pakistanis were contributing to the development and prosperity of the Emirati state. Experts further stated that the year 2018 is an important year for UAE as it posted a steady evolution in the economic and trade sectors and making substantial progress in social development apart from playing a major role in foreign and regional affairs.

The government officials also recorded that UAE passport’s rise to become one of the world’s strongest travel documents as proof of the emirate’s diplomatic achievements. According to the World Passport Index also show that during 2018, UAE passport ranked third globally, standing 163 states visa-free. Moreover, UAE ranked first among Arab states and 20th globally in the Happiness Index, first in rule of law in the Middle East and North Africa (MENA) region, 5th internationally in the Safety Index, 20th in government effectiveness, internationally two UAE seaports rank among the top 50 world container ports with the Jebel Ali Port, ranking 9th internationally and first in MENA.

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It is expected that the upcoming Dubai Expo 2020 as one of the most significant milestones presently is in process. Predicted to host greater than 200 participating states, the experts also recorded that this exhibition is an effective implementation of global cooperation strategies and plays a central role in enlarging and bolstering bilateral and multilateral relations.

As far as the bilateral relations with the Government of Pakistan is concerned, the experts also mentioned that Pakistan and United Arab Emirates enjoy a fine friend friendship which has withstood many tests while the scope of their cooperation continues to enlarge covering many fields. Different sources also highlight that the UAE-Pakistan relations are the strongest and with every passing day these will bear more fruit for both nations as both governments are working on these lines. The different sources highlighted that a high trade volume of $8 billion between Pakistan and UAE not only signifies the close relationship between the two states but also calls for exploring this trade potential even more.

 

The present Government of Pakistan has been formalizing a broad strategy to advantage overseas Pakistanis and shortly it would be introduced. The government officials also assured that the need for overseas investment in Pakistan and assured full support from the government as Prime Minister and his team was inviting foreign investment in Pakistan to open greater career opportunities and enhance the economy in the long term. Furthermore, the Government of Pakistan has asked UAE for offering similar kind of oil facility on deferred payment up to $3 billion on the basis of 365 days as being finalized by Kingdom of Saudi Arabia.

Statistics also showed that the Government of Pakistan also made request to UAE for placing same rules and regulations as being done by KSA for offering oil facility on deferred payment. This kind of breathing space if agreed to offer through UAE would assist the Government of Pakistan to negotiate a better deal with the International Monetary Fund (IMF). Statistics also showed that Pakistan’s fuel import both oil and LNG reached at $16 billion per annum basis, however, the total foreign currency reserves of the country stood at $13.7 billion out of which the reserves held through SBP reached at just over $8 billion. It is also said that Pakistan imported crude oil mostly from UAE and Saudi Arabia as the country’s dependence on UAE stands at approximately 57 percent and remaining 43 percent on KSA on yearly basis.

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Conclusion

After a visit of Prime Minister of Pakistan, Imran Khan, the experts foresee that the leadership of both states has resolved to further intensify and strengthen their wide-ranging and mutually helpful relationship. The growing ease of doing business in Pakistan and a conducive investment environment, it was a matter of pride that UAE’s public and private corporations were actively spending in main field. I would also like to mention here that UAE and India have inked a currency swap deal to boost bilateral trade. Now, instead of dollar both these states can do trade in their national currencies Indian rupee and dirham. But we should be noted that the trade between UAE and India accounts for almost $50 billion which makes them one of the biggest trade partners, so Pakistan must take lead in its trade relationship with the United Arab Emirates amid having history of brotherly countries connection.

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