Hajra Naz
Trade between Pakistan and the United Arab Emirates (UAE) soared to $10.1 billion during the financial year 2024–25, marking a robust 20.24% increase compared to the previous year, according to data from the State Bank of Pakistan (SBP).
This significant rise in bilateral trade underscores the strengthening of economic relations, particularly in key areas such as energy, information technology, investment, and services.
Trade Imbalance Still Favors the UAE
Despite the overall growth, the trade relationship remains heavily tilted in favor of the UAE.
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Pakistan’s exports to the UAE were recorded at $2.1 billion
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Imports from the UAE reached $8 billion
This means Pakistan imported $5.9 billion more than it exported. The $1.62 billion increase in imports this year has further widened the trade gap.
Experts Call for Urgent Measures to Reduce Trade Deficit
Trade growth is a good sign. But experts warn about the rising trade imbalance. They say Pakistan should boost its export strength. Diversifying what the country exports is also important. This can help reduce heavy reliance on imports.
Key expert recommendations include:
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Developing targeted export promotion strategies
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Encouraging joint ventures with UAE-based companies
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Attracting foreign direct investment (FDI) in local manufacturing and tech sectors
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Offering incentives for businesses to explore non-traditional export markets
Joint Ministerial Commission Revived After 13 Years
A key political step is the revival of the Pakistan–UAE Joint Ministerial Commission. It met recently after more than 13 years. This high-level forum will support better dialogue and policy coordination.
It may also lead to new economic agreements. The renewed talks show both countries want stronger ties in many areas.
Focus on Technology, Energy, and Investment
According to the State Bank, both nations have tremendous untapped potential for collaboration, particularly in:
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Renewable energy
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Information and communication technology
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Infrastructure development
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Logistics and port operations
If leveraged properly, these modern sectors could transform Pakistan’s export landscape and reduce reliance on imported goods and fuel.
Read More: These Pakistani Passport Holders Can Now Travel Visa-Free to UAE
Toward a More Balanced Future
The UAE is one of Pakistan’s top trading partners. It also hosts a large Pakistani expatriate community. This makes their economic ties very important. Experts say Pakistan must act now to secure long-term gains.
Proactive steps are needed to strengthen this relationship.
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Boost local production
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Create value-added products
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Enhance export quality standards
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Negotiate better market access for Pakistani goods and services
Conclusion
The $10.1 billion trade figure shows stronger ties between Pakistan and the UAE. But Pakistan still faces a large trade deficit. To fix this, it must invest in exports and form better trade policies. Collaborating with the UAE on joint business initiatives can be beneficial. Strong actions now can lead to balanced and lasting trade growth.
