Faiza Tehseen

Ethiopian market holds great potential for Pakistan to take its current volume of bilateral trade to the next level. Ethiopia is the second most populous country in the African region after Nigeria and is a regional hub with access to a broad market. As Ethiopia is a member of the Africa Continental Free Trade Agreement (AfCFTA), the countries investing in Ethiopia can benefit from low tariffs and incentives offered to it under the agreement.

Pakistani firms can involve in joint-ventures with their Ethiopian counterparts in a variety of trade and business sectors as doing so is quite easy in the African country because of its government’s easy and forthcoming economic policies. Due to an open and broad trade policy, countries like China, India, Saudi-Arabia, Germany, Türkiye and the USA are involved in business ventures in Ethiopia like infrastructure, textiles, agriculture, floriculture, etc.

Pakistan can also tap into these sectors and become a formidable investing country in the Ethiopian market. In 2021, Pakistan exported different products to Ethiopia worth $739.87 million and imported multiple items worth $7.57 million.

Senior vice-president of the Islamabad Chamber of Commerce and Industry (ICCI) Jamshed Akhtar Sheikh shared his views with WealthPK about the trade potential lies for Pakistan in the Ethiopian market. “Ethiopia is importing a lot of products from China and India, so it can be a potential market for Pakistani products as well.” He said as Pakistani pharmaceutical companies can exploit the Ethiopian market by setting up production units there with the assistance of Ethiopian firms.

Akhter Sheikh also called for operating direct flights between the two countries for both passenger and cargo services. He also shared that ICCI was also considering arranging regular visits of the trade delegations of both countries to help them understand the business and trade needs on both sides.

Tajamul Hussain Sachal, public relations officer of the Sialkot Chamber of Commerce and Industry, told WealthPK that Pakistan’s trade with Ethiopia is far less than its true potential. “The main reason is the lack of proper bilateral trade and business agreements at the state level. The same is the case with visas, trade tariffs, payment modules, etc.”

He said Pakistan should focus on establishing proper trade and business relations with Ethiopia at the official level. The Ethiopian embassy in Pakistan can play a vital role in giving impetus to trade and business ties between the two countries by arranging regular visits of trade bodies. Pakistan stands a good chance of establishing industrial units in Ethiopia because of the low energy, land, labour and production costs there. Businessmen willing to invest in Ethiopia should be facilitated in speedy processing of their visas.

Credit : Independent News Pakistan-WealthPk