Pakistan nears finalization of FTA with GCC

May 10, 2024 (MLN): The Free Trade Agreement (FTA) between Pakistan and the Gulf Cooperation Council (GCC) countries is likely to be finalized soon, which will strengthen the economic and trade ties of Pakistan with the potential market of the GCC, Federal Minister for Commerce, Jam Kamal Khan informed today. 

After the free trade agreement to these countries with Pakistan, Pakistan's trade relations with these countries will increase and our trade volume will also be enhanced, the minister said while talking to APP, besides of two-day Pakistan-Saudi Arabia Investment Forum.

The Gulf Cooperation Council (GCC) brings together six Arab countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates for integration amongst them.

Saudi Arabia is a major trading partner of Pakistan in the GCC countries, which has vast potential for investment and trade in various sectors including petrochemicals, he added.

Both private and public sectors participated in the Pakistan Saudi Arab Investment Forum and the process of private sector business-to-business discussions has started. 

Replying to a question, he said that 13 different sectors from the private sector participated in the forum and similarly Minerals and Mines and Energy sector from the public sector participated in the negotiations.

The government's fresh approach of focusing solely on facilitation has successfully bolstered the confidence of investors and businessmen in its commitments, paving the way for a new era of economic growth and cooperation, he said.

Unlike in the past, the incumbent government has limited its role to the facilitation and promotion of businesses to build a robust economy, which he said was imperative in shaping foreign policies and fulfilling commitments respectfully.

This new approach had already yielded positive results, with Saudi investors expressing confidence in the government's commitments, the minister added. 

Jam Kamal said the government's efforts have led to an influx of around 100 foreign companies from various sectors, including energy, food, construction, and IT, engaging with Pakistani businesses. 

The minister praised the business community's crucial role in improving the country's economic affairs and acknowledged the government's commitment to creating a conducive environment for economic growth.

The government has taken concrete steps, including reforms in taxation, energy, and tariff matters, to facilitate export-oriented companies and ease the process of doing business.

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