Pakistan and Gulf Cooperation Council sign ‘preliminary’ free trade agreement

Secretary General of the Gulf Cooperation Council (GCC), Jassem Mohamed Albudaiwi, right, and Dr. Gohar Ejaz, Pakistan's minister of commerce sign preliminary Free Trade Agreement (FTA) between the GCC and Pakistan in Riyadh, Saudi Arabia on September 28, 2023. (Photo courtesy: GCC)
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Updated 29 September 2023
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Pakistan and Gulf Cooperation Council sign ‘preliminary’ free trade agreement

  • Pakistani commerce ministry calls deal “milestone in both sides' economic cooperation”
  • FTA to enhance Pakistani exports to GCC nations through the removal of trade barriers

KARACHI: Pakistan and the Gulf Cooperation Council (GCC) have signed a “preliminary” free trade agreement (FTA), Pakistan’s commerce ministry announced on Friday, calling it a “milestone in both sides' economic cooperation.”

The preliminary FTA was signed by the Secretary General of the GCC, Jassem Mohamed Albudaiwi, and Dr. Gohar Ejaz, Minister of Commerce for Pakistan, on Thursday at the headquarters of the General Secretariat in Riyadh.

Last year, both sides held technical-level talks to examine the possibility of signing a free trade agreement that could help Pakistan boost its exports to the six-country bloc, which includes Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait. In March this year, a delegation of senior Pakistani diplomats met top GCC officials in Riyadh to discuss the agreement’s modalities. Last week, the foreign minister of Pakistan also met the GCC Secretary General and called for the “early conclusion” of the FTA.

“This is a significant development as the FTA is the first by GCC with any country since 2009 and marks a milestone in both sides' economic cooperation,” the Pakistan commerce ministry said in a statement.




Secretary General of the Gulf Cooperation Council (GCC), Jassem Mohamed Albudaiwi, right, and Dr. Gohar Ejaz, Pakistan's minister of commerce shake hands after signing preliminary Free Trade Agreement (FTA) between the GCC and Pakistan in Riyadh, Saudi Arabia on September 28, 2023. (Photo courtesy: GCC)

The GCC also released a statement, saying the “historic” agreement represented “an important turning point in cooperation and would contribute to growth and prosperity in a way that serves the common interests of both sides.”

“GCC countries are moving forward with the file of free trade negotiations with other countries, aiming to open and enhance the prospects for trade and economic cooperation for the Council member states regionally and internationally.”

The preliminary deal will now be followed by an internal administrative and approval process before the final agreement is signed and comes into effect.

Muhammad Zubair Motiwala, Chief Executive Officer at the Trade Development Authority of Pakistan (TDAP), the country’s export promotion arm, called the signing of the preliminary FTA a “positive step for export growth.”

“This is a very positive development which would help Pakistan to boost its exports to GCC countries,” Motiwala, who is also the chairman Businessmen Group (BMG) at the Karachi Chamber of Commerce and Industry (KCCI), said.

Furqan Abdul Qadir, who serves as the Director of the Pakistan-Saudi Arabia Business Council at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the FTA would help enhance trade with Gulf nations.  

“FTA is a basic tool to enhance trade between the nations and this step is very welcoming because of the future growing market of Middle East,” Qadir said. “There is huge potential for trade enhancement and investment in the GCC region as countries including Saudi Arabia are rapidly growing.”

The share of Pakistani exports to the Saudi market was very limited, Qadir said, an issue that would be addressed through the removal of trade barriers under the FTA.

Ahsan Mehanti, a director at the Pakistan-UAE Business Council at the FPCCI, said the FTA would provide a competitive level playing to Pakistan compared with its South Asian neighbors including India and Bangladesh.  

 “The FTA will increase trade volume with GCC nations because if we compare our trade [with GCC] with India, it is doing well in GCC, while we are lagging,” Mehanti said.

The signing of the FTA comes as Pakistan is pushing to pitch an improved business climate and its potential for foreign direct investment in a range of sectors. In June the South Asian nation set up a Special Investment Facilitation Council (SIFC) — a civil-military hybrid forum — to fast-track decision making and promote investment from foreign nations, particularly Gulf countries.

The council has identified five sectors as priority, namely agriculture, mining, information technology, defense production and energy, as Pakistan deals with a balance of payments crisis and requires billions of dollars in foreign exchange to finance its trade deficit and repay its international debts in the current financial year.

Speaking to reporters on Thursday, Foreign Minister Jalil Abbas Jilani said the SIFC forum had become “extremely popular” among international investors and was attracting interest from Middle Eastern countries.

“There are a lot of MOUs and agreements which are in the works, and we are expecting delegations from respective GCC countries very soon,” Jilani said, adding that agreements would be finalized in the fields of agriculture, information technology, mines, and minerals, energy, and defense production, mostly as joint ventures.

“This [FTA] will help us meet our export growth targets and increase investment from GCC countries in Pakistan," said Mehanti at the Pakistan-UAE Business Council. 

"It will also help Pakistan to meet the objectives of the SIFC.”


Thousands gather in Pakistan’s Karachi to celebrate Gaza ceasefire

Updated 20 January 2025
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Thousands gather in Pakistan’s Karachi to celebrate Gaza ceasefire

  • The truce took effect on Sunday with the release of first three hostages held by Hamas and 90 Palestinians freed from Israeli jails
  • Jamaat-e-Islami, which organized the Karachi rally, urged the Pakistani people to support its initiative for the rebuilding of Gaza

KARACHI: Thousands of Pakistanis gathered on Monday on a main thoroughfare in the southern port city of Karachi to celebrate a ceasefire between Israel and Hamas in Gaza, describing it as a “victory of resistance forces.”
The truce in the 15-month-old war, which has laid waste to the Gaza Strip, took effect on Sunday with the release of the first three hostages held by Hamas and 90 Palestinians freed from Israeli jails.
Now, attention is starting to shift to the rebuilding of the coastal enclave which the Israeli military has demolished, killing more than 47,000 Palestinians since Oct. 7, 2023 attacks by Hamas on Israel.
To celebrate the ceasefire, the Jamaat-e-Islami (JI) religious party organized a congregation on Shahrah-e-Quaideen thoroughfare in Karachi, which was attended by thousands of men, women, children and elderly.
“What happened in Gaza once again exposed the United States as it was the sponsor of the genocide,” JI chief Hafiz Naeemur Rehman told the attendees. “The freedom fighters [of Gaza] defeated Israel in all the dimensions.”
The attendees at the rally carried the Palestinian flags and chanted slogans in support of the people of Gaza.
Rehman urged them to support a JI initiative for the rebuilding of Gaza and continue their boycott of Israeli products and the products of the countries that sided with Israel.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters.”
The South Asian country has dispatched several relief consignments for Gaza, besides establishing the ‘Prime Minister’s Relief Fund’ that aims to collect public donations for the war-affected people.
In his address with the participants through a video link, Hamas official Khalid Qadoumi said Gaza proved to be “Vietnam for Israel.”
“Israel opted to retreat due its heavy military losses in the strip,” he was quoted as saying by the JI party.
“Israel displaced 90 [percent] population of Gaza, killed around 50,000 innocent, unarmed people, majority of them women and children, but it couldn’t defeat the resolve of Palestinian Muslims.”
Muhammad Farooq, a Pakistani provincial lawmaker, said the Pakistani nation stood by the Palestinians in their struggle for freedom.
“The freedom movement of Palestine has proved that life of nations is linked with resistance against oppression,” he added.


Iran’s top general meets Pakistani leaders, discusses security and border management

Updated 20 January 2025
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Iran’s top general meets Pakistani leaders, discusses security and border management

  • Pakistan, Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy
  • Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both countries claiming to target alleged militant hideouts

ISLAMABAD: Maj. Gen. Mohammad Bagheri, chief of general staff of Iranian armed forces, on Monday held talks with Pakistani civilian and military leaders with regard to regional security, counter-terrorism measures and joint border management, Pakistani authorities said.
Pakistan and Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy. Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both claiming to target alleged militant hideouts in each other’s territory.
The two-day trip of the Iranian general is aimed at resolving security issues between Pakistan and Iran, while expanding friendship and economic ties along their shared border, Iranian media reported ahead of Major General Bagheri’s arrival in Pakistan on Sunday night.
On Monday, the general held separate meetings with Pakistan’s President Asif Ali Zardari, Defense Minister Khawaja Asif and Army Chief Asim Munir. In his meeting with President Zardari, the two figures exchanged views on matters of bilateral importance and stressed the need to promote bilateral trade and economic relations.
“It was also highlighted that terrorism was a shared challenge, and both countries needed to take effective and coordinated measures to address this challenge,” the Press Information Department (PID) of the Pakistani government said in a statement.
In his conversation with the visiting dignitary, Defense Minister Asif expressed satisfaction over positive progression of bilateral relations between the two countries in all fields.
“Both sides showed satisfaction on progress in various areas of mutual interest, including joint border management and counter-terrorism measures, aimed at enhanced cooperation in areas of common interest in future,” the PID said.
Separately, Major General Bagheri met Pakistan’s army chief at the General Headquarters in Rawalpindi, where he was presented a guard of honor.
“During the meeting, both sides discussed matters related to the prevailing regional security environment and bilateral defense cooperation,” said the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
In a bid to ease tensions, late Iranian president Ebrahim Raisi had also traveled to Pakistan on a three-day visit in April 2024. During the visit, the two sides had signed memorandums of understanding in the fields of trade, science technology, agriculture, health, culture, and judicial matters.
Raisi’s visit was followed by a two-day visit to Islamabad by Iranian Foreign Minister Seyed Abbas Araghchi in Nov. to hold consultations with the Pakistani leadership on the Middle East situation, following Israel’s invasion of Gaza and Lebanon, and to discuss bilateral ties with Pakistan.


Foreign Office confirms one more Pakistani survivor of Morocco boat capsize

Updated 20 January 2025
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Foreign Office confirms one more Pakistani survivor of Morocco boat capsize

  • The boat sank off Morocco’s coast last week with 86 people on board
  • The confirmation brings the total number of Pakistani survivors to 22

ISLAMABAD: Pakistan’s Foreign Office on Monday confirmed one more survivor of a migrant boat capsize off the coast of Morocco last week, bringing the total number of survivors to 22.
The migrant boat capsized near Morocco’s coast on Jan. 15 while en route to Spain. It was carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later that 36 people were rescued from the vessel which left Mauritania on Jan. 2, while Foreign Office confirmed on Sunday the survivors included 21 Pakistani nationals.
“Based on verified information, one more Pakistani national named Muhammad Adeel s/o Muhammad Rasheed has been identified among the survivors of the boat tragedy,” the Pakistani foreign office said on Sunday.
The incident near Morocco has once again underscored the dangerous journeys many migrants, particularly Pakistanis, embark on due to conflict and economic instability in their home country.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a ship wreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests.
Prime Minister Shehbaz Sharif has urged increased collaboration with international agencies to ensure swift action against human trafficking networks.


McCullum sees India series as ideal prep for Champions Trophy in Pakistan

Updated 20 January 2025
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McCullum sees India series as ideal prep for Champions Trophy in Pakistan

  • The tourists, led by Jos Buttler, will face India in the first of five T20 internationals in Kolkata on Wednesday
  • India series marks England’s first limited-overs tour under coach McCullum, previously in charge only of Test side

KOLKATA: England coach Brendon McCullum said Monday he hopes his side emerge from a host of limited overs matches against India in “good shape” for the upcoming Champions Trophy.
The tourists, led by Jos Buttler, will face India in the first of five T20 internationals at Kolkata’s Eden Gardens on Wednesday.
The India series marks England’s first limited-overs tour under McCullum, previously in charge only of the Test side.
“I’m desperate for us to play a really watchable brand of cricket,” McCullum told reporters. “With the talent we have, there’s no reason we can’t.”
The teams will play three one-day matches, before they move into the eight-team ODI Champions Trophy starting February 19 in Pakistan and Dubai.
“We’ll use the next few weeks to try and hit the ground running, I’m sure there will be some times where we don’t quite get it right,” he added.
“But, hopefully, we will chisel away at that over the next few weeks, and we’ll be in good shape come that Champions Trophy.”
The 43-year-old McCullum said Buttler, who will only play as a batsman and not keep wicket on the tour, will leave a lasting legacy as England’s white-ball leader.
“He’s in a really good space, he’s excited about the team we’ve got, and excited about the opportunity that sits in front of us,” the former New Zealand skipper said.
“I’m sure we’ll see Jos over the next couple of years really enjoy himself, and hopefully finish with a real strong enjoyment for the game at the back end of his career.”
But India, led by Suryakumar Yadav, remain the favorites on home turf — and have been boosted by the return of fast bowler Mohammed Shami after he recovered from a foot injury.
Shami, 34, last played for India in the ODI World Cup final in November 2023 and recently participated in a few domestic matches to mark his return to competitive cricket.
“It’s a really good sign for us,” India’s T20 vice-captain Axar Patel said. “We hope he continues what he did in the World Cup.”


New Trump administration to view Pakistan through ‘China-India lens’ as Islamabad pledges stronger ties — experts

Updated 20 January 2025
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New Trump administration to view Pakistan through ‘China-India lens’ as Islamabad pledges stronger ties — experts

  • Islamabad-Washington ties, strained over Pakistan’s alleged support of Taliban, further worsened after ex-PM Khan blamed his ouster on Washington
  • Analysts suggest Islamabad to make a clear agenda with defined milestones, cautiously approach developments in relations and respond accordingly

ISLAMABAD: The new United States (US) administration of President Donald Trump will continue viewing Pakistan through the “China-India lens,” Pakistani foreign affairs experts said on Monday, as Islamabad pledged to strengthen its relations with Washington.
Trump’s inauguration is scheduled for Monday at 1700 GMT inside the Capitol Rotunda as he returns to the presidency four years after being voted out during a pandemic-driven economic collapse, marking an unprecedented political comeback.
Relations between Islamabad and Washington, once close allies, had been strained because of Pakistan’s alleged support of the Taliban in Afghanistan, a claim Islamabad denies. Ties worsened further during the tenure of Prime Minister Imran Khan, who welcomed the Taliban’s 2021 takeover and accused Washington of trying to oust him. Since Khan’s ouster in 2022, PM Shehbaz Sharif’s government has made frequent efforts to repair the damaged relations.
But Pakistani foreign affairs experts believe that the US is unlikely to seek a significant expansion of ties with Islamabad in the near future and will approach it keeping its China and India policies in view, and remaining largely focused on security cooperation, particularly in counterterrorism and Afghanistan.
“The biggest challenge for Pakistan is that the Trump administration will continue its previous policies of looking at Pakistan through the China-India lens,” Dr. Zafar Nawaz Jaspal, a professor at Quaid-e-Azam University’s School of Politics and International Relations, told Arab News.
“Now, the biggest challenge for us is how to convince the Americans that though we will be not a part of the American policies to contain China, but at the same time, we could be a part of Americans’ policies in addressing the non-traditional security challenges and on Afghanistan.”
He said the new Trump administration could use the incarceration of Pakistani political figures, including ex-PM Khan, to influence the incumbent Pakistani government.
“People think that Imran Khan is an established fact, the political divide in Pakistan exists and that divide could be exploited by the external powers for pursuing their agendas within the country or in the region,” Dr. Jaspal added.
Trump’s special envoy nominee Richard Grenell urged President Joe Biden’s administration to use its last days in power to push for the release of Khan, who has been in jail for more than a year on a slew of charges, so he could run for office in Pakistan.
While a Pakistani Foreign Office spokesperson declined to comment on Grenell’s statement at the time, the Pakistani government and allies have criticized Grenell’s comments.
On Monday, Pakistani Foreign Office spokesperson Shafqat Ali Khan said Pakistan maintained close relations with the US, marked by multi-layered cooperation in economy, trade, people-to-people connections, security and counter-terrorism, and Islamabad seeks to further solidify them.
“Pakistan-US relations have a very long history, and the relations remain rich and dense, and we would continue to work with the new administration to further solidify and strengthen this vital relationship,” Shafqat told Arab News.
“We seek to further strengthen these ties by ensuring the continued positive growth of bilateral relations.”
Senator Sherry Rehman, who has previously served as Pakistan’s ambassador to the US, said every transition offers opportunities for a reset, and Pakistan needs to state its own goals for a broader bilateral path to widen its relationship with the US from a highly “securitized” lens to a more robust economic and commercial one.
“Islamabad should make a clear agenda with defined milestones for consistent engagement over better terms of trade, not just wait for Washington to respond to regional headwinds, in which Pakistan finds itself seeking balance against an Indian arms race in South Asia,” she told Arab News.
“There should be no diplomatic diffidence in stating the country’s strategic interests while iterating confidence in rebuilding trust between the two countries [Pakistan and the US].”
Masood Khan, another former Pakistani ambassador to the US, said Pakistan should try to invest “new energy” into economic cooperation between the two countries and remove any “shackles” in the strategic domain.
“The full contours of President Trump’s policy toward South Asia haven’t become very clear, but we have shared strategic interests in the region and beyond,” he told Arab News.
“This is called Trump 2.0, so it will not be the repetition of the previous tenure,” he said, adding that Trump is more “clear-headed and more forthright” regarding his priorities this time.
Dr. Salma Malik, another foreign affairs expert, said if the US adopts policies directed against China, every action or policy decision it takes will have a “direct or indirect impact on Pakistan.”
“Therefore, it is important not to overreact or panic, instead, we should cautiously approach developments, assess opportunities, and respond accordingly,” she said.