In the fiscal year 2023–24, bilateral trade between Pakistan and the United Arab Emirates (UAE) exceeded US$10.9 billion, encompassing both goods and services. Ambassador Faisal Niaz Tirmizi highlighted that these figures not only underscore the strength of the economic partnership but also reflect the significant role of the Pakistani diaspora in supporting Pakistan’s economy.
Remittances from UAE-Based Pakistanis Near $7 Billion
Ambassador Tirmizi further disclosed that remittances from the Pakistani community residing in the UAE reached $6.7 billion in 2024 and are projected to surpass $7 billion in 2025. He emphasized that these remittances are crucial in bolstering Pakistan’s national economy.
Trade Balance and Sectoral Highlights
In the goods sector for 2023–24, trade totaled $8.41 billion. Pakistan’s exports saw a significant increase of 41.06% to $2.08 billion, while imports from the UAE decreased by 14.45% to $6.33 billion. This resulted in a 28.28% reduction in the trade deficit. The services sector also experienced growth, with total trade reaching $2.56 billion, a 20.54% year-on-year increase.
Continued Growth in Trade Activities
Between July 2024 and January 2025, goods trade increased by 21.63%. Pakistan’s exports during this period grew by 7.53%, indicating sustained momentum in economic engagement between the two nations, reports WAM.
UAE Investments in Pakistan’s Key Sectors
The UAE has made substantial investments across various sectors in Pakistan, including communications, services, tourism, information technology, oil and gas, housing, banking, and real estate. Prominent UAE companies such as Etihad Airways, Emirates, Emaar, and Dubai Islamic Bank have established operations in Pakistan, further strengthening bilateral economic ties.
Collaborative Efforts and Future Outlook
Ambassador Tirmizi praised the role of the Special Investment Facilitation Council (SIFC) in enhancing Pakistan’s investment climate through streamlined processes and increased transparency. He also acknowledged the contributions of the Pakistani diaspora in the UAE, urging them to utilize legal banking channels for remittances to ensure compliance with local laws and regulations.
Looking ahead, both countries are optimistic about further enhancing their economic relationship, with ongoing negotiations such as the Comprehensive Economic Partnership Agreement (CEPA) aiming to boost trade and investment. Ambassador Tirmizi expressed hope for significant progress in these negotiations, which are expected to provide new opportunities for collaboration across various sectors.
These developments highlight the robust and growing economic partnership between Pakistan and the UAE, underscored by increasing trade volumes, significant investments, and a strong commitment to mutual growth and cooperation.
