In a significant milestone for economic cooperation, Pakistan and the Gulf Cooperation Council (GCC) have concluded their negotiations and inked a preliminary free trade agreement (FTA) in Riyadh, Saudi Arabia.
This development was confirmed on Friday, shedding light on the prospects of enhanced trade relations between the two parties.
The finalization of the FTA came after the culmination of the last round of talks, which took place from September 26 to 28, 2023, at the GCC headquarters in Riyadh. The Ministry of Commerce issued a press release today, announcing the successful conclusion of these negotiations.
Interim Commerce Minister Gohar Ejaz and GCC Secretary General Jassem Mohamed Albudaiwi took part in the historic signing of the joint statement, symbolizing the commitment of both parties to strengthening economic ties.
According to the joint statement, “Both parties looked forward to the expeditious signing, ratification, and implementation of the agreement, which will mark a new chapter in the economic relations between our parties.”
Before the FTA becomes official, it will undergo an internal administrative and approval process, ensuring that all necessary legal procedures are in place.
The GCC Secretary General emphasized the importance of this preliminary deal, describing it as a “recognition of the importance of strengthening trade relations and economic cooperation with countries and international blocs.” He further pointed out that this “historic economic agreement” represents an “important turning point” in cooperation between the two sides, with the potential to contribute significantly to growth and prosperity.
Ejaz, Pakistan’s Commerce Minister, also expressed his enthusiasm for the agreement, noting that it is the GCC’s first FTA with any country since 2009. He emphasized the excellent relations between Pakistan and the GCC member states and how this FTA will elevate their economic ties to match these diplomatic relationships.
The pursuit of an FTA with the GCC has been a long-standing endeavor for Pakistan, dating back to 2005. The recent development aligns with the Joint Action Plan for Strategic Dialogue (2022-26), which was finalized in January of the previous year. This comprehensive plan aims to deepen cooperation in various fields, including political, security, trade and investment, agricultural and food security, transportation, energy, environment, health, culture, and education, reflecting the commitment of both parties to multifaceted collaboration.
