Pakistan’s Caretaker Commerce Minister Gohar Ejaz arrived in Saudi Arabia for the finalization of investment-related chapter of a proposed free trade agreement (FTA) between Pakistan and the Gulf Cooperation Council, the Pakistani commerce ministry said on Saturday.
Pakistan and the six-member GCC bloc signed a framework agreement to discuss the FTA in August 2004 but only a few rounds of negotiations took place in subsequent years. However, the GCC and Pakistan resumed the discussions in 2021 after a significantly long period.
Last year, both sides held technical-level talks to examine the possibility of signing the agreement that could help Pakistan boost its exports to the six-nation bloc, which includes Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait.
The Pakistani commerce minister on Saturday held parleys with the GCC’s chief negotiator to finalize investment-related part of the proposed agreement.
“The technical teams from two sides held extensive discussions on the remaining details of the investment chapter, including investment protection and facilitation,” the Pakistani commerce ministry said in a statement.
“They also discussed the potential impact of the FTA on bilateral trade and investment flows.”
The FTA is expected to boost trade and investment between Pakistan and the GCC, according to the statement. The agreement will also create new jobs and opportunities for businesses in both regions.
“This is a major step forward in our efforts to strengthen economic ties between Pakistan and the GCC,” Ejaz was quoted as saying by his ministry.
It said the investment chapter was an important part of the agreement and it was confident that an agreement would soon be reached between the two sides.
“The two sides also discussed the possibility of holding a joint business forum in the near future to promote trade and investment between Pakistan and the GCC,” the ministry added.
The development comes as Pakistan treads a tricky path to economic recovery after securing a crucial $3 billion bailout deal with the International Monetary Fund (IMF) in June.
Currently, the South Asian country has free trade agreements with China, Malaysia, and Sri Lanka, but it still needs to increase exports to other trade destinations.—AN
