UAE, Pakistan trade set to hit $9bn in 2011

Bilateral trade between the UAE and Pakistan trade is set to grow to $9bn in 2011, backed by rising crude oil prices and a higher demand for Pakistani products, the Commercial Counsellor of the Pakistani Embassy in Abu Dhabi said.

UAE imports to Pakistan are expected to rise to $7bn in the coming year, an increase of $2bn from the previous year’s figures of $5bn, Bilal Pasha told Arabian Business.

“UAE imports are expected to increase in value as oil prices have increased,” he said, adding that items like chemicals, heavy machinery and construction equipment would be the main focus of trade.

Pakistani imports to the UAE, its third largest importer, are expected to reach $2bn in 2011, up from $1.7bn in 2009-2010, Pasha said.

Food items such as rice are expected to form a significant part of the rise in trade value, helped by a global jump in the cost of basic commodities.

Last week, the UN's Food and Agriculture Organization announced that food prices for basic commodities hit record highs in December.

“Pakistani has not been immune to the global rise in food prices and the prices of food commodities reflect that,” said Pasha.

The UAE is home to Pakistan’s second largest collection of expats, with more than one million of them residing in the Emirates.

The community is expected to provide Pakistan with its largest source of remittance in 2011, with more than $2bn being invested back into the country, Pasha said.

Although the tense regional situation has affected Pakistan’s trade, the Commercial Counsellor said that he was optimistic about Pakistan’s growth in the coming year, predicting a two to three percent rise in gross domestic product, though he added that this figure could be revised by the end of February, depending on the success of the cash crops.