THE People’s Democratic Republic of Algeria holds special strategic significance as the gateway to the African Continent, being the largest country in Africa and largely situated in the southern Sahara. Sharing borders with Tunisia, Libya, Morocco, Western Sahara, Mauritania, Mali and Niger and with a northern coastline of 1,644 kilometers, Algeria plays a vital regional and global role. Its economy is advancing with a clear vision, supported by a robust legislative framework that fosters a win-win approach to investment and trade. With remarkable growth in agriculture, energy and industry, Algeria has become a major regional hub, producing 50 billion cubic meters of gas annually and hosting thousands of new investment projects. Its strategic location, modern infrastructure and commitment to sustainable, mutually beneficial partnerships make it a key destination for economic cooperation and development.
Algeria offers unparalleled diversity in key sectors. The agricultural sector, a vital pillar of the economy, is undergoing remarkable growth. Its fertile land presents extensive opportunities for successful investment, including solar, wind, biomass and hydrogen energy. Amid rapid political and economic changes, Algeria has become a symbol of stability and progress. Historical bonds, deep roots and a shared cultural heritage keep it united with the motherland of Africa, showcasing modern airports, ports, upscale hotels and state-of-the-art conference centres, along with a beautiful blend of culture and civilization. Its sun, sea, desert and rich natural heritage await further investment.
Algeria has become a major energy and industrial hub in Africa, producing 50 billion cubic meters of gas annually. Under a reformed investment law, it hosts 17,000 new investment projects, with its GDP expected to exceed 260 billion US dollars, ranking third in Africa including economic structures like agriculture (14.7%), industry (42.3%) and services (43%). A recent annual investment report released by Rand Merchant Bank (RMB) and the Gordon Business Institute shows that Algeria has risen from three positions to the 7th rank among the most attractive economies in Africa during the 2025-2026 period. This improvement in ranking is attributed to the large market size, direction of economic diversification and a series of policies aimed at enhancing the investment environment. Foreign trade is a crucial pillar of Algeria’s economy. In 2024, exports of goods reached 49.35 billion US dollars, while imports stood at 46.05 billion US dollars, maintaining a surplus of over 3.3 billion US dollars. The country’s economy heavily relies on oil and gas, which account for nearly 30 percent of GDP, over 30 percent of tax revenue and approximately 90 percent of export business.
Algeria is currently the fifth largest producer of natural gas in the world and the second largest exporter. It ranks 13th in production and 9th in crude oil exports. To reduce dependence on oil, the Algerian Government has implemented policies to tighten imports for several years, enhance the attractiveness of investment, promote non-oil and gas exports, incentivize domestic production and subsidize essential goods. The country also maintains a prudent financial policy, with foreign debt at a very low level (less than 3 percent of GDP) and foreign exchange reserves reaching nearly 70 billion US dollars, equivalent to 15.8 months of imports. Algeria is not yet a member of the WTO but has participated in three major FTAs with the European Union, the Arab world and the African continent (AfCFTA). Additionally, the country has signed 58 bilateral trade agreements, including two preferential trade agreements with Jordan and Tunisia.
Pakistan and Algeria share historical and fraternal relations. Recently, the 71st anniversary of the glorious revolution of the People’s Democratic Republic of Algeria, which began on November 1, 1954, was commemorated with a magnificent ceremony paying tribute to the historical struggle, perseverance and unity of the Algerian people. The shared values of friendship, mutual respect and partnership between Algeria and Pakistan were celebrated, reaffirming their historical friendship and economic cooperation while expressing confidence in the continued expansion of their multifaceted partnership. Pakistan also praised Algeria’s principled stance on Palestine. Pakistan fully supported Algeria’s struggle for independence and was among the first countries to recognize the ‘Provisional Government of the Republic of Algeria’ in exile in September 1958, reflecting its foreign policy’s fundamental principles advocating the end of colonialism, solidarity with Muslim causes and support for the right to self-determination. Even before Algeria became an independent state on July 5, 1962, Pakistan was a strong supporter of its freedom. After independence, Pakistan was among the first countries to establish diplomatic relations on August 16, 1963 and since then, both nations have maintained diplomatic missions in each other’s capitals, laying the foundation for enduring cooperation across political, economic and cultural fields.
Undoubtedly, diplomatic relations between Pakistan and Algeria have flourished over the decades, laying the foundation for cooperation in various fields. Overall, bilateral relations have remained positive. Pakistan and Algeria have close cooperation in organizations such as the OIC (Organization of Islamic Cooperation) and the Non-Aligned Movement, as reflected in their similar positions within the OIC and the Group of 77 (G77). Pakistan is making several efforts for the development of the industrial sector and there is an investor-friendly environment in the country. Under the AFRICA ENGAGE program, Algeria holds a special position as a leading country in Africa and the Arab world. The relationship between the two countries is becoming increasingly strong and dynamic in the sectors of energy, IT, industry and the blue economy. There is no doubt that a longstanding partnership exists between Pakistan and Algeria, rooted in mutual respect, historical relations and shared values.
—The writer is Chairman, Tehrik Jawanan Pakistan.
