Trade between Pakistan and the UAE reached $10.1 billion in FY2024-25, according to the State Bank of Pakistan. This marks a 20.24% increase compared to the previous year.
The growth shows stronger cooperation in energy, IT, and investment. But the trade balance remains unequal and favors the UAE.
Pakistan exported goods worth $2.1 billion to the UAE. In contrast, imports from the UAE hit $8 billion this year. Imports rose by $1.62 billion, widening the trade gap.
Experts welcome the growing trade volume. However, they warn that the widening gap is a concern. They suggest that Pakistan must improve its export performance and reduce reliance on imports.
One positive step is the revival of the Pakistan-UAE Joint Ministerial Commission. It met recently for the first time in 13 years. This shows both sides want closer cooperation and new opportunities.
Analysts recommend that Pakistan strengthen its export strategy. They also call for more joint ventures with UAE companies. Attracting UAE investment in local industries is also key.
These actions could reduce the deficit. They would also help create jobs and grow the economy.
The State Bank says both countries can grow ties in modern sectors. These include renewable energy, digital tech, and logistics.
If Pakistan focuses on these sectors, it can improve exports. It will also build long-term trade strength.
There is also strong support from the Pakistani community in the UAE. Over 1.6 million Pakistanis live and work there. Their remittances exceeded $3 billion last year.
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Experts suggest using this diaspora network for business growth. They can promote exports and bring in investment and innovation.
The $10.1 billion milestone is a sign of strong Pakistan-UAE trade ties. But it also highlights the need for balance.
Smarter trade policies, stronger exports, and innovation can help. These steps will make trade more equal and beneficial for both nations.
