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We're Exploring New Avenues to Boost Pak-UAE Trade, Investment
Faisal Niaz Tirmizi, Pakistan’s Ambassador to the UAE, says the UAE-Pakistan bilateral trade and investment have bright prospects ahead
Faisal Niaz Tirmizi, Pakistan Ambassador to the UAE
Pakistan remains an important trading partner of the UAE with huge consumer market and both the countries are committed to strengthen bilateral relations by exploring new avenues of cooperation in key sectors of economy, its top diplomat says.
Faisal Niaz Tirmizi, Pakistan’s Ambassador to the UAE, said Special Investment Facilitation Council (SIFC) is proactively engaged with the UAE side to facilitate the flow of investment and provide one window operation for potential investors.
“We have recently signed a number of memorandum of understandings (MoUs) to promote bilateral ties. Various MoUs and agreements between Pakistan and UAE are still in the pipeline. These are related to cooperation in political, cultural, economic, trade, energy and legal matters,” Tirmizi told Khaleej Times during an exclusive interview.
Tirmizi, who assumed his office in the UAE in October 2022, belongs to the Pakistan Foreign Service and had earlier served as an envoy to Kyrgyzstan and played an important role in strengthening Pakistan’s ties with the Central Asian state. He joined the foreign service in 1993 and has handled bilateral, multilateral, consular and administrative assignments both at the headquarters and abroad.
Excerpts from the interview:
Pakistan and the UAE have been enjoying close relations. What is the latest progress on UAE-Pakistan bilateral trade and investment?
Pakistan and the UAE have enjoyed fraternal relations. The foundational elements of this relationship remain historical ties and regular leadership level engagements; geographic proximity; and strong people to people contacts.
The UAE remains Pakistan’s largest trading partner in the Middle East and North Africa (MENA) region with an annual trade, fluctuating between $8 billion to $9 billion. There is still a huge potential in bilateral trade that needs to be explored further through diversification and exploring new avenues of cooperation.
Pakistan and UAE have mutually agreed to strengthen investment cooperation in multifaceted areas. Recently, both sides have signed investment cooperation memorandum of understandings (MoUs) in the fields of energy, port operations projects, waste-water treatment, food security, logistics, minerals, and banking and financial services. The implementation of these agreements through mutually agreed projects will boost the trade and investment between the two countries.
Pakistan remains an important trading partner of the UAE with huge consumer market. It also provides a natural trade corridor between the Middle East and the Central Asia. Special Investment Facilitation Council (SIFC), established last year, is proactively engaged with the UAE side to facilitate the flow of investment, and provide one window operation for potential investors.
The UAE’s economic and technological development has transformed the country into a global trade and tourism hub. The UAE’s immense economic potential can also be gauged from huge investment of Pakistani business people and diaspora in the UAE.
By working together, we can further cement bilateral economic partnership.
Please share important developments to further strengthen bilateral ties between the two countries since you assumed office?
Bilateral relations have witnessed a steep upward trajectory with frequent interactions of the leadership of two countries during last one and a half years. It also included Pakistan’s participation in COP-28 in addition to various bilateral visits. During the same duration, 15 bilateral MoUs or agreements have been signed, providing necessary impetus to further strengthen the entire spectrum of our bilateral relationship and economic partnership. We are also witnessing increase in B2B linkages, leading to rise in exports from Pakistan.
You initiated the process of the Comprehensive Economic Partnership Agreement with UAE last year. What is the progress so far?
The bilateral negotiations on Comprehensive Economic Partnership Agreement (CEPA) are in process. Negotiations are taking place between the technical experts. We are hoping for a positive outcome.
Pakistan and the UAE are keen to promote cooperation in renewable energy and signed MoUs recently. Please share some details.
The two countries have signed an MoU for cooperation in renewable energy sector. The concerned departments from both sides are engaged to develop mutually beneficial projects.
What new initiatives were introduced at the Embassy and Consulate to facilitate visitors to renew ID Cards and passports and attestation of documents, among others?
Providing consular services to more than 1.8 million Pakistani community members in the UAE remains the core responsibility of Pakistan Embassy and the Consulate General in Dubai. We are working on a better queue management system to facilitate and provide all necessary facilities to Pakistani diaspora who are visiting for consular services. This has streamlined the process of submission and collection of documents and help in saving time of the applicants. We have also established a dedicated ‘WhatsApp’ number to respond to consular inquires. The process of upgrading the consular halls to reduce congestion and accommodate more people at one time, is also under way.
The overseas Pakistanis in the UAE are leading the remittances chart, but recently outflows from UAE to Pakistan dropped significantly due to multiple reasons. How will you address this issue?
Pakistani diaspora in the UAE is the second highest source of remittances to Pakistan. The government is taking measures to improve the regular banking channels and make them efficient in a way that overseas Pakistanis can send their money directly to their homes, in a quick and cost-effective way to counter the hawala/ hundi channels, which is an informal and unregulated way of remitting money. Despite our efforts, informal channels are still being used.
The government of Pakistan had launched massive operation to stop illegal trade of foreign currency. As a result, the gap between the official and open markets has reduced. The recent number suggests that the flow of remittance from UAE to Pakistan has improved.
Roshan Digital Account is a good product attracting sizeable foreign exchange. How do you see its outlook?
The Roshan Digital Account (RDA) is a valuable product for Pakistanis in the UAE because it allows them to open and manage a bank account from anywhere. They can easily invest in Pakistan’s financial opportunities like stocks and real estate. Plus, it’s simple to send money back home or abroad. With low costs and good exchange rates, RDAs are a convenient way for Pakistanis to stay connected to their finances and invest in Pakistan’s economy while living abroad.
Tourism and hospitality are among the critical sectors that can lift Pakistan’s economy. How do you see potential in these two sectors and what steps you will suggest to increase tourist inflows from the UAE?
Pakistan holds significant potential for tourism owing to its diverse landscapes, rich cultural heritage, and historical significance. With majestic mountain ranges, picturesque valleys, and serene lakes, Pakistan offers spectacular natural beauty that appeals to travelers seeking adventure and tranquility.
The tourism and hospitality industry has the potential to transform our economy. In order to attract tourists from the UAE, last year, PIA’s direct flights from Dubai to Skardu were commenced but later suspended due to weather conditions.
The regular availability of flights between the two countries provides an important avenue to promote tourism from UAE to Pakistan. Additionally, we are making efforts to develop a tourism eco system in the country that also includes investment in infrastructure and hospitality sectors.
IT exports and services are another area that has the potential to earn foreign exchange. Why were we unable to sustain upward momentum? Are any policy measures proposed to boost IT exports and services?
Pakistan holds significant potential in IT exports. IT sector offers a pathway to boost Pakistan’s economy and create employment opportunities. With more than 60 per cent of its population below the age of 30, Pakistan is a country of about 250 million people that offers im¬m¬ense opportunities in all sectors, especially in the IT sector. A growing number of educational and training institutes are focusing on technology-related fields.
Additionally, Pakistan provides comparatively lower labour costs, making it an attractive destination for outsourcing IT services.
Last year, Pakistan showcased its IT sector at Gitex Global 2023, the world’s largest IT exhibition, with participation of 27 companies and over 45 startups exhibiting under the Tech Destination Pakistan brand. Pakistan’s IT exports and startups have shown a sharp upward trend in recent years, driven by enabling government policies. Today, Pakistan’s IT exports stand at $2.6 billion annually, with the potential to increase to $10 billion within the next 2-3 years.
— muzaffarrizvi@khaleejtimes.com
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