ISLAMABAD: Pakistan and the United Arab Emirates have renewed their resolve to fast-track negotiations on a comprehensive trade and investment agreement, the commerce ministry said on Wednesday, as Islamabad looks to further strengthen economic ties with the Gulf state.
The commitment was reaffirmed during a meeting between Pakistan’s Commerce Minister Jam Kamal Khan and UAE Ambassador Salem Mohammed Salem Al Zaabi, where both sides agreed to maintain close coordination to push forward talks on the Pakistan-UAE Comprehensive Economic Partnership Agreement (CEPA).
The proposed agreement aims to expand economic cooperation by improving market access, attracting investment and enhancing collaboration across key sectors, including trade, logistics, ports, infrastructure and manufacturing. Pakistani officials view CEPA as a mechanism to convert long-standing political goodwill and people-to-people links into a more balanced and sustainable trade and investment relationship.
“Both countries are keen to translate this closeness into a stronger and more balanced trade and investment partnership that reflects the true potential of bilateral relations,” Khan said, according to the statement, adding that both sides reaffirmed their commitment to expediting progress on the agreement.
The commerce minister outlined Pakistan’s ongoing economic reforms and said the government was working to create a more business-friendly environment, despite short-term challenges faced by the private sector due to economic stabilisation measures. He added that the government’s focus remained on medium-term growth, export expansion and enhanced regional connectivity, particularly with Gulf countries.
The UAE ambassador praised Pakistan’s market size, skilled human capital and strategic location, and conveyed Abu Dhabi’s strong interest in expanding cooperation in trade, logistics, ports, infrastructure, manufacturing and investment facilitation.
Pakistan and the UAE maintain close economic relations, with Abu Dhabi having provided crucial financial support to Islamabad during periods of economic stress, including deposits placed at Pakistan’s central bank to help stabilise foreign exchange reserves amid a balance-of-payments crisis.
Last month, Deputy Prime Minister Ishaq Dar said Pakistan was in discussions with the UAE to convert $1 billion in deposits into equity investments, potentially involving stakes in companies associated with the Fauji Fertilizer Group, a move that would remove repayment obligations on that amount.
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The commerce ministry said the two sides also explored opportunities for joint ventures, trilateral cooperation in third-country markets and collaboration in regions such as Central Asia and Africa, and agreed to continue working closely to advance the CEPA process.
