Pakistan, Ethiopia set stage for long-term economic partnership

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MG News | April 20, 2026 at 03:05 PM GMT+05:00

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April 20, 2026 (MLN): Pakistan and Ethiopia have agreed to deepen bilateral trade, industrial collaboration, and regional connectivity, focusing on expanding economic engagement across African markets and unlocking new investment opportunities.

The understanding came during a detailed meeting between Federal Minister for Commerce Jam Kamal Khan and Dr. Oumer Hussein Oba, where both sides reviewed the growing momentum in bilateral relations and stressed the need to translate this engagement into practical, results-oriented partnerships, according to a press release issued.

The Commerce Minister said recent interactions have created a “fresh foundation” to jointly explore not only each other’s markets but also broader opportunities across Africa.

He proposed organizing a multi-country business forum in Islamabad, inviting East African nations to witness Pakistan’s industrial capabilities and strengthen trade linkages.

Highlighting Pakistan’s strengths, he pointed to the country’s robust small and medium enterprise (SME) sector, which produces a wide range of goods including home appliances, engineering products, agricultural machinery, and consumer goods.

He emphasized strong potential for cooperation in agriculture, engineering industries, and tractor manufacturing to support mechanization and productivity in African economies.

The Minister also noted rapid growth in Pakistan’s cosmetics and personal care sector over the past four to five years, proposing joint ventures between Pakistani and Ethiopian firms in cosmetics, perfumes, and related products to tap into rising demand.

Referring to industrial success stories, he invited the Ethiopian delegation to visit Sialkot, describing it as a model of private-sector-led development with global exports in sports goods, surgical instruments, leather, and footwear. He highlighted that the city’s business community has independently developed infrastructure, including an international airport.

On trade logistics, the Minister stressed improving connectivity and reducing reliance on third-country transshipment hubs such as Jebel Ali Port. He proposed direct maritime links through feeder vessels to African ports, potentially cutting transit time from 10–12 days to just 2–3 days.

He also highlighted Karachi’s geographic advantage as a gateway for African exports to Central Asia through regional maritime corridors, including Djibouti.

Both sides also discussed tourism potential, noting Ethiopia’s natural beauty and climate, while describing Pakistan as a “sleeping giant” in tourism.

The Ethiopian side shared plans to hold a Single Country Exhibition in Islamabad later this year, following a successful earlier event in Ethiopia. The Minister welcomed the initiative, calling it an important step toward strengthening trade ties.

It was also shared that Ethiopian Airlines is planning to launch direct flights to Lahore, a move expected to boost business-to-business linkages, improve connectivity, and promote cultural exchange.

The Ethiopian delegation appreciated Pakistan’s economic progress, skilled workforce, and hospitality sector, emphasizing the importance of human capital and calling for enhanced cooperation in education, skills development, and institutional capacity building.

Both sides reaffirmed their commitment to expanding bilateral trade, promoting joint ventures, and building a long-term, quality-driven economic partnership through enhanced industrial cooperation, connectivity, and investment.

 

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