(MENAFN- Khaleej Times) Pakistan Finance Minister Ishaq Dar said bilateral trade with the UAE has the potential to grow further and will cross the $10 billion mark this financial year.
"Bilateral trade with the UAE rose steadily in past years and hit $9 billion in fiscal year 2013-14 with balance of trade is in favour of the emirate due to our heavy imports comprising of more than 75 per cent of petroleum products. We are taking appropriate steps to realise the true potential of trade with the UAE," Dar told Khaleej Times in an interview.
Pakistan-UAE trade climbed 17.68 per cent in the past four years as it rose from $7.67 billion in financial year 2010-11 to $9.02 billion in 2013-14. Pakistan's exports to the UAE, in fact, declined by 7.5 per cent from $1.85 billion in 2010-11 to $1.71 billion in 2013-14 while its imports from the UAE rose 25.73 per cent from $5.81 billion to $7.30 billion during the period.
Latest available data indicates that bilateral trade between the two countries advanced 11.44 per cent in the July-December 2014 period to $5.05 billion and is expected to hit $12 billion by 2017-18 when the PML-N-led government will complete its five-year term. Pakistan is expected to increase its exports to the UAE to over $3 billion during the period, but the balance of trade will remain in favour of the Emirate.
"We have a very close relationship with the UAE. It is also our second major source of remittances in the GCC after Saudi Arabia as overseas Pakistanis working here sent $3.10 billion in 2013-14. The remittances from the UAE reached $1.97 billion in July-December 2014 period and will hit new peak this fiscal year ending on June 30," Dar said.
Pakistan-India relations
The finance minister further said the government is keen to develop close relations with all countries to put the economy on road to progress and development in the next three years. "Developing cordial relations with immediate neighbours and Muslim countries is the focal point of our strategy that will help revive the Pakistan economy through trade and mega economic projects launched by the government," the minister said.
Dar said there is a lot of scope to enhance bilateral trade and economic ties with neighbouring India, but unfortunately no progress was made despite a bold initiative of Prime Minister Nawaz Sharif, who attended the oath-taking ceremony of Indian Prime Minister Narendra Modi at his invitation last year.
"We are ready to engage in talks again, provided a composite dialogue restarts and [we] discuss all pending issues. It was at a very advanced stage before the Indian elections, but unfortunately there is hardly any progress so far after Modi took office last year," Dar said.
India-Pakistan bilateral trade slightly rose in financial year 2013-14 and reached $2.70 billion compared to $2.60 billion in the corresponding fiscal year. The balance of trade is heavily in India's favour as it exported goods worth $2.27 billion in 2013-14, reflecting an increase of 10 per cent. Contrary to this, Pakistan's exports to India dropped by 21.22 per cent at $426.88 million in 2013-14 as against $541.87 million in 2012-13. "Pakistan is ready to discuss non-discriminatory market access to India; that discussions were in the final stages with the previous Congress government, but Prime Minister Nawaz decided that whoever wins the election, we would engage ourselves with the new government," Dar said.
Afghanistan, Iran relations
To a question, the finance minister said confidence-building measures with Afghanistan are yielding positive results and are paving the way for peace and stability in the region.
"We accord top priority to deal with Afghanistan's new leadership led by President Ashraf Ghani. We want to work jointly for bringing peace, eliminating terrorism, expanding our bilateral and multilateral ties, and that is the agenda of our government. If peace prevails in Afghanistan then it will bring peace to Pakistan and vice-versa," he said.
About $7.5 billion Iran-Pakistan gas pipeline project, the minister said Pakistan is developing a 700km pipeline from Nawabshah to Gwadar and awaits the removal of international sanctions against Iran, which has already completed a 900km pipeline section on its territory.
"We hope that the international sanctions against Iran are lifted as early as possible, so that it can do normal business with the rest of the world," he said.
Iran and Pakistan launched the construction of a multi-billion natural gas pipeline project in March 2013 that will help Pakistan to overcome energy shortage.
"As soon as the sanctions are lifted then we would need to construct only 78km to connect with Iran. That is the priority of the government, but because of the sanctions, we are doing part of that project on our side, and then obviously once the sanctions are lifted we will be very happy to complete the project," Dar said.
Pak-China Economic Corridor
About the Pak-China Economic Corridor, the finance minister said this vital project would not only usher in a new era of development and prosperity in Pakistan, but also in the entire region.
"China has been a great friend of Pakistan and it has agreed to invest in some special projects in the country. First and foremost important project is the economic corridor that will link Kashgar in China's Xinjiang province to Gwadar port in Pakistan," Dar said.
The $45 billion project would create a 3,000km road and rail links as well as pipelines to transport oil and gas to China from port city of Gwadar. The under-construction project, which is expected to be completed by 2030, is considered central to the Pakistan-China economic relations. "The economic corridor is not going to benefit China and Pakistan alone, it's going to benefit the entire region - Central Asian states, India, Afghanistan and other neighbouring countries. It's a win-win position for everyone," Dar concluded.
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