Pakistan and GCC Sign Historic Free Trade Agreement

Pakistan and the Gulf Cooperation Council (GCC) signed a free trade agreement (FTA) on Friday, marking a significant development following the conclusion of the final round of negotiations in Riyadh, Saudi Arabia.

Caretaker Commerce Minister Dr. Gohar Ejaz and GCC Secretary General Jasem Mohamed Albudaiwi jointly signed the statement for the Pakistan-GCC FTA.

In a joint statement issued by both parties, it was stated, “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.”

The final round of negotiations took place from September 26-28 at the GCC Headquarters in the Saudi capital.

This FTA is of particular importance as it represents the first such agreement by the GCC with any country since 2009, signifying a milestone in the economic cooperation between the two sides.

Dr. Ejaz emphasized Pakistan’s excellent relations with all GCC countries and expressed the belief that the FTA would ensure that the country’s economic ties would be commensurate with these relations.

The agreement will now undergo an internal administrative and approval process before it can be officially signed and come into force.

“The Preliminary FTA between the Council and the Islamic Republic of Pakistan comes in recognition of the importance of strengthening trade relations and economic cooperation with countries and international blocs,” the statement noted.

The plan for this agreement was finalized in January 2022, in line with the memorandum of understanding (MoU) on Strategic Dialogue between the two sides.

Pakistan has maintained long-standing diplomatic and economic relations with GCC countries, which are a group of six member states, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. These nations have been key trade partners and have hosted a significant number of expatriate Pakistani workers over the years.