GCC and Pakistan Free Trade Deal is a Historic Economic Agreement

The Gulf Cooperation Council (GCC) and Pakistan have hailed the free trade agreement between the two as a historic milestone. It represents a significant turning point in cooperation between the GCC and Pakistan. The free trade agreement emphasizes strengthening of economic relations between countries.

Jasem Mohamed Al-Budaiwi, GCC secretary-general, said the deal will strengthen the economic ties between the GCC states and Pakistan. He believes it will benefit both sides in their respective common economic and commercial interests.

The free trade agreement comes as a relief for Pakistan as it has been struggling with a political and financial crisis for much of 2022-2023. It has been dealing with backbreaking inflation, a depreciating currency and low foreign reserves.

GCC’s First FTA With Any Country

The GCC describes the free trade agreement with Pakistan as the first by the Gulf Cooperation Council with any country since 2009. “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.” The GCC is also looking forward to 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.

Al-Budaiwi said the Council is working towards achieving integration among the GCC states, by achieving the goal of establishing the customs union and activating a common market. Highlighting the intra-Gulf cooperation, the secretary-general said it’s at the highest level in terms of politics, security and military levels, but there is a need to complete economic integration. This requires flexibility.

Positive Development for Pakistan

Muhammad Zubair Motiwala, CEO at the Trade Development Authority of Pakistan (TDAP), applauded the free trade agreement, saying it’s a positive step for export growth. It will help Pakistan boost exports to GCC countries. Furqan Abdul Qadir, Director of the Pakistan-Saudi Arabia Business Council at the Federation of Pakistan Chambers of Commerce and Industry, said the free trade agreement would enhance trade with Gulf nations.

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