In a significant move to deepen economic ties, Pakistan and the United Arab Emirates (UAE) have mutually decided to expedite negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The agreement aims to substantially enhance bilateral trade and investment flows between the two nations.
High-Level Meeting Sets Accelerated Timeline
The decision was reached during a crucial meeting between Pakistan's Commerce Minister, Gohar Ejaz, and the UAE's Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi. The discussions took place on the sidelines of the 13th Ministerial Conference of the World Trade Organization (WTO) in Abu Dhabi. Both ministers underscored the strategic importance of the economic relationship and committed to a fast-track negotiation process.
Minister Gohar Ejaz emphasized that the CEPA is a top priority for the Pakistani government. He highlighted the potential for the agreement to unlock new opportunities for Pakistani exports, particularly in sectors like agriculture, textiles, and information technology. The UAE side expressed a strong desire to strengthen the partnership, recognizing Pakistan's role as a key economic player in the region.
Objectives and Expected Benefits of the Pact
The proposed Pakistan-UAE CEPA is designed to be a wide-ranging economic pact. Its primary goals include the elimination or reduction of tariffs, the removal of non-tariff barriers, and the facilitation of investments. The agreement seeks to create a more predictable and transparent trading environment for businesses in both countries.
For Pakistan, the deal is seen as a vital tool to increase exports, attract foreign direct investment (FDI) from the UAE, and create employment opportunities. The UAE, with its strategic location and advanced logistics hubs, offers Pakistani products enhanced access to regional and global markets. Enhanced cooperation in the energy and food security sectors is also a key area of mutual interest.
Building on Strong Foundations
The push for a CEPA builds upon already robust economic relations. The UAE is among Pakistan's largest trading partners and a major source of remittances. A significant Pakistani diaspora resides and works in the Emirates, contributing to the strong people-to-people links that underpin the bilateral relationship.
This agreement follows Pakistan's recent conclusion of a similar, though less extensive, Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC). The UAE-specific CEPA is expected to be more comprehensive and tailored to the unique economic synergies between the two nations. The fast-tracking of talks signals a shared political will to translate diplomatic warmth into concrete economic gains.
The commerce ministries of both countries are now expected to schedule intensified rounds of technical discussions to iron out the specifics of the agreement. The business communities in Pakistan and the UAE have largely welcomed the development, anticipating reduced costs and smoother market access.
