Pak-Saudi trade relations: potential and prospects
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The closeness of relations is manifested in various aspects. The two sides have long-established time-tested strategic ties. Saudi Arabia has extended economic cooperation to Pakistan many a times in the need of hour. Workers remittances from this brother Islamic country play a substantial role in strengthening balance of payment of Pakistan.
The two sides are also close-knit in religious terms. When seen in the backdrop of this overall picture, one aspect of the relations i. In turn, Pakistan supplies food-group items mainly rice, meat, meat products, spice and fruits; home textile products; chemicals; footwear and leather goods.
There has been slight downward trend sincewhich may be partly attributed to somewhat slowing down of economic activities in Saudi Arabia due to falling oil prices.
However, even if pakistan saudi arabia trade statistics by country disregards the phenomenon of temporary slow growth in Saudi Arabia, it is still palpable that magnitude of trade relations between the two countries is not in sync with their long-established close-knit ties. The fact of the matter is that Pakistan caters to merely 0. Considering the manufacturing base of Pakistan and our thriving services sector, Pakistan saudi arabia trade statistics by country has much more to offer to Saudi Arabia and actually there is a huge potential of bilateral trade lying unrealized between the two countries.
In this behalf, Pakistan has some natural advantages as well. Apart from being a time-tested ally, Pakistan is geographically proximate to Saudi Arabia and bilateral trade is comparatively feasible both through air and sea routes. Moreover, Saudi Arabia hosts the largest expatriate community of Pakistan anywhere in the world.
Most of these Pakistani citizens are long-settled in Saudi Arabia and are well familiar with the local culture in all walks of life including the business environment. Due to their huge number 2. Presence of this large expatriate community can play a significant role in furthering the bilateral business, commercial and trade relations between Saudi Arabia and Pakistan.
There are a number of areas in which trade magnitude can be possibly enhanced. Pakistan specializes in textiles products, which account for more than half of our total global exports. The share of textiles especially value-added garments can see a big jump if the circumstances are aligned. Similarly Pakistan manufactures state-of-the-art surgical instruments and the world-standard sports goods, which can easily find their place in Saudi Arabian market.
There is also a great cushion of expansion in the market share of food sector products already being exported. Pakistan can also easily cater to the rapidly growing sector pakistan saudi arabia trade statistics by country organic foods in Saudi Arabia. Similar potentials exist in services sector be it financial services, insurance sector, facilities management, IT services, entertainment industry etc. There are a number of interventions at bilateral level as well as at the level of institutions, business bodies and individual companies which may help realizing the trade and business potential to its fullest.
So far two rounds of negotiations have been held in the past and the broader contours have also been agreed upon. Conclusion and signing of this agreement will result in quantum jump in trade volumes of Pakistan not only with Saudi Arabia but also with the whole Gulf region. Similarly signing of a Bilateral Investment Treaty between Pakistan and Saudi Arabia is also a possibility in the near future. This agreement will liberalize, promote and reciprocally protect the investments made by companies of the two countries in each other and will help them capitalize pakistan saudi arabia trade statistics by country the opportunities arising on both sides i.
Apart from this, bilateral business bodies are warranted to play an active role. Frequent exchange of business delegations and enhanced business-to-business interactions are guaranteed to accelerate the commercial relations. Liberalized business visa regime on both sides will greatly facilitate such interactions.
Pakistan and Saudi Arabia both understand the significance of enhanced pakistan saudi arabia trade statistics by country and trade relations and the two sides are already making progress in various areas.
Pak-Saudi Joint Ministerial Commission exists since which serves as the apex body to discuss all bilateral matters relating to economic, trade, business and commercial relations of the two countries. The Commission is slated to meet this year as well. Highest bodies representing industry on two sides i.
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