ISLAMABAD: Pakistan and the Gulf Cooperation Council (GCC) have concluded the final round of negotiations on the Pakistan-GCC Free Trade Agreement.

Federal Minister for Commerce Dr Gohar Ejaz and Secretary General GCC Jasem Mohamed Albudaiwi signed the joint statement on the successful conclusion and finalization of the FTA negotiations.

The final round of the Pakistan-GCC FTA (PAK-GCC FTA) was held from September 26-28, 2023 at the GCC Headquarters in Riyadh.

The commerce ministry said 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.

Speaking on the occasion, Dr Gohar Ejaz said that Pakistan has excellent relations with all the GCC countries and the FTA will ensure that our economic ties commensurate with these relations.

The statement said both parties look forward to the expeditious signing, ratification and implementation of the agreement which will mark a new chapter in the economic relations between both sides.

This will now be followed by an internal administrative and approval process before signing and entry into force of the agreement.

The Pakistan Business Forum (PBF) has commended the efforts of the Ministry of Commerce for finalizing the Pakistan-GCC Free Trade Agreement, calling it a “remarkable step” for export growth.

PBF President Mian Usman Zulfiqar said the FTA has been the first by GCC with any country since 2009. He said FTA will ensure that our economic ties commensurate with excellent relations with GCC countries.

Pakistan and the GC signed a framework agreement to discuss the free trade pact in August 2004 but only a few rounds of talks took place. The two sides resumed the negotiations in 2021.

PBF President also noted that this historic economic agreement represents an important turning point in cooperation and would contribute to growth and prosperity that serves the interests of both sides.

“One should understand that FTA is a basic tool to enhance trade between the nations and this step is very welcoming because of the future growing market of the Middle East,” Zulfiqar said.

“There is huge potential for trade enhancement and investment in the GCC region as countries including Saudi Arabia are rapidly growing.”

PBF President said the share of Pakistani exports to the Saudi market was very limited which would be addressed through the removal of trade barriers under the FTA. Similarly, the FTA would provide a competitive level playing field to Pakistan compared with its South Asian neighbours including India and Bangladesh.

“This FTA will also 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,” Zulfiqar added.

He also stated that 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.

The PBF is has been a vocal advocate for the FTA, arguing that it would boost trade between Pakistan and the GCC countries and create jobs in Pakistan.

The GCC – a regional bloc of six Arab countries – is a major trading partner of Pakistan. The FTA is expected to increase trade between the two sides by up to 50%. The development will allow Pakistan to boost its exports to GCC countries and the FTA would help enhance trade with Gulf nations.

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