Trade between Pakistan and the United Arab Emirates reached a record high of $10.1 billion during the financial year 24-25, as the two countries strengthened their ties.
In a significant boost to economic relations, bilateral trade between Pakistan and the United Arab Emirates (UAE) increased by 20.24% to $10.1 billion in the fiscal year 2024-25 (FY25), up from approximately $8.4 billion in goods and $2.56 billion in services the previous year.
The growth in trade is primarily attributed to a rise in imports from the UAE to Pakistan, which increased by $1.62 billion to nearly $8 billion. Pakistan's exports to the UAE remained relatively stable at around $2.1 billion during the same period.
The Special Investment Facilitation Council (SIFC), a civil-military body established in 2023, played a significant role in this trade growth by effectively fast-tracking Gulf and other foreign investments into Pakistan's key sectors. The SIFC's policies have been credited by the Pakistani Interior Ministry for fostering considerable progress in Pakistan-UAE economic cooperation.
The SIFC is focused on reducing Pakistan’s import burden, attracting capital, and generating employment through investments in key sectors. The council has been instrumental in facilitating investment inflows that aim to bolster the economy.
The increase in bilateral trade and cooperation coincides with the revival of the Pakistan-UAE Joint Ministerial Commission after 13 years. The 12th session of the commission discussed enhanced collaboration across trade, investment, energy, food security, aviation, IT, and human resource development.
The UAE remains a major source of remittances for Pakistan, with inflows reaching $7.83 billion in FY25, supporting Pakistan’s overall economic stability. This figure is expected to exceed $7 billion in 2025.
The progress in Pakistan-UAE cooperation is significant, according to the Interior Ministry. Pakistan aims to leverage these ties to reduce its import bill, attract capital, and create jobs. The Interior Ministry attributes the significant progress to the effective policies of the Special Investment Facilitation Council (SIFC).
The renewed focus on Foreign Direct Investment (FDI) is part of Pakistan's efforts to diversify exports and stabilize its economy. This focus on FDI comes amid Pakistan's efforts to implement an IMF-supported reform program.
Radio Pakistan reported on the collaborations discussed during the 12th session of the Pakistan-UAE Joint Ministerial Commission, signifying both countries’ commitment to deepening economic ties. The progress and focus on FDI are expected to further strengthen these relations in the coming years.
- In light of the Special Investment Facilitation Council's (SIFC) efforts to attract foreign investments in key sectors, the growth in news of increased Pak-UAE trade and cooperation has been linked to a boost in art, finance, and business.
- Amidst the revival of the Pakistan-UAE Joint Ministerial Commission, discussions on enhanced collaboration have included topics like trade, investment, and finance, which are anticipated to foster further advancements in the economy and potentially lead to a rise in remittances from the UAE.
