Healthy relationship

Pakistan shares strong economic ties with the UAE.

Pakistan and the UAE are bound together by age-old ties of history, culture, tradition and religion. As the first country to accord formal recognition to the UAE on its emergence as an independent nation by establishing a full-fledged embassy in the country's capital, Pakistan shares extensive relations with the UAE.

"The UAE and Pakistan enjoy a special relationship. While our economic relations are productive in various fields, both Pakistan and the UAE share a firm commitment to the principle of peaceful coexistence besides a similar approach to many outstanding international issues," says Ahsan Ullah Khan, Pakistan's ambassador to the UAE.

Pakistan's economic relations with the UAE have recently seen a new dimension with the largest privatisation deal finalised between Emirates Telecommunications Corporation ( Etisalat) and Pakistan Telecommunication Company Limited (PTCL). Etisalat's acquisition of a 26 per cent stake in the Pakistani telecom company is seen as a historic development and milestone in Pakistan-UAE relations. In addition, Pakistan is also under negotiations with DP World for the management of  Gwadar Port, a major conduit for global oil supplies.

"Pakistan is a growing market for investments. This development is seen as a win-win situation, outlining greater investment opportunities for both the countries. The UAE is already the second-largest foreign investor next to the US and we are hopeful that such ventures will promote Pakistan as a safe haven for investments," he says.

Frequent high-level exchanges have enhanced relations taking them to a personal level, points out Khan. "The late Shaikh Zayed Bin Sultan Al Nahyan was a frequent visitor to Pakistan. Recently we were honoured to host President His Highness Shaikh Khalifa Bin Zayed Al Nahyan who visited Pakistan in January to hold talks on cooperation with President Musharraf. We are also expecting an official visit by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, later this year," says Khan.

The UAE is one of Pakistan's major trading partners. Approximately eight per cent of Pakistan's exports come to the UAE, making it the second-largest destination for the country's exports. On the other hand, Pakistan relies overwhelmingly on the UAE for its imports of petroleum and related products.

The trade graph between the countries has registered phenomenal growth during the past four years. In 2002-2003, Pakistan's exports totalled $942.91 million (about Dh3.46 billion) and imports amounted to $1.7 billion (about Dh6.24 billion). In 2004-2005, Pakistan's exports to the UAE amounted to $1.095 billion (about Dh4.021 billion) while imports from the UAE stood at $1.9 billion (about Dh6.97 billion), showing a steady increase.

Major exports from Pakistan include rice, silk, synthetic textiles, bed linens, ready made garments, knitwear, cotton yarn, surgical instruments, marble and onyx products. On the other hand, the UAE's exports to Pakistan include petroleum and related products, chemicals, machinery and parts, gold and automobiles.

Several measures have been initiated in order to boost trade, observes Khan. Besides the establishment of Pakistan's Business Council in Dubai and the UAE, a Pakistan-UAE business council has been set up in Karachi. In addition, Pakistan will soon establish a permanent display centre in Sharjah.

Pakistan is also an active participant in trade fairs and exhibitions held in the UAE. Similarly, about 100 UAE businessmen and investors attended Expo 2005 held in Karachi last year.

"Apart from encouraging Pakistani nationals to seek employment opportunities here, we are trying to encourage investment and bring our expertise here. In this respect, we are also looking at cooperation in the IT sector where Pakistan has tremendous know-how.

"A delegation of Pakistani IT vendors is expected in the UAE to explore areas of cooperation," says Khan.

The ambassador points out that Pakistan now intends to promote its educational institutions in the UAE. "We are working at establishing a full-fledged medical college in Dubai. The LUMS Medical University in Pakistan is also encouraging students from here to study there," he says.

Tourism has also been booming in Pakistan over the past few years, says the ambassador. "For UAE residents, Pakistan is no longer a destination for hunting. More and more tourists from the UAE are visiting Pakistan to explore new destinations, especially in the northern region."

Khan was overwhelmed by the response to the recent Solidarity Day, a charity fair dedicated to the earthquake victims of Pakistan.

"Right from its conception, the Pakistani community has played an important role in the development of the UAE with its involvement in the construction, banking, medical, navy and defence sectors. Emirates airline was initially started with the backing of PIA and we are proud to note the airline's success story. We hope our ties continue to grow stronger," says Khan.