Ethiopia, Pakistan ink bilateral trade agreement

Addis Ababa, February 14, 2023 (FBC) – The government of Ethiopia and Pakistan have made consultations on ways of strengthening their trade and economic relations and have signed bilateral trade agreement that enables them to work cooperatively with the view of increasing mutual trade flows.

The purpose of signing this cooperative trade agreement is also to enable the governments of the two countries to work cooperatively and further strengthen their trade relationship.

During the occasion of the signing, Kasahun Gofe, State Minister for Trade Relation and Export Promotion Sector, noted that Ethiopia and Pakistan have been enjoying friendly relations since the establishment of their diplomatic relations in 1958 and have strengthened the relationship after the opening of the Pakistan Embassy in Addis Ababa in 1973.

As the state minister stated, since Pakistan has been Ethiopia’s development partner, its government has provided scholarships and training to Ethiopian students and government officials in capacity building and human development fields.

Besides, Ethiopia’s government encouraged Pakistani businessmen to engage in the country’s captivating investment; including textile industries, furniture factories, and food processing industries.

The two countries’ annual trade exchange value reached 46.6 million USD in 2022 and the share of Ethiopia’s export and import trade was about 16.5 million and 30.1 million USD, respectively.

According to the Ministry of Trade and Regional Integration (MoTRI), the annual average trade exchange value of the two countries in the past five consecutive years (2018-2022) was about 71.8 million USD of which Ethiopia’s export and import trade constituted 14.3 million and 57.5 million USD, respectively. This figure shows that the trade turnover of the two countries’ trade has not steadily grown up to the extent of the market potential.

The trade data indicates that Pakistan has the potential to import Ethiopia’s main export products which include oil seeds, pulses, live animals, dairy products, spices and tobacco.

Likewise, Ethiopia has the market potential to import goods that Pakistan has extensively exported to other countries, including textiles and apparel, pharmaceutical supplies, chemicals, plastics, rice, and seafood products.

This agreement can create a conducive environment for the business communities of the two countries to have information on business opportunities, organize trade promotion programs, and explore the trade potentials of the two countries.

Muhammad Sualeh Ahmad, Secretary General in the Ministry of Commerce of Pakistan, for his part, said that the agreement is vital not only for bilateral relations but also to looking and changing the opportunities to development of the two countries, MoTRI stated.

The officials who signed the agreement affirmed that both countries are determined to implement the agreement in a short period of time.