Key Points
- Islamabad seeks early signing of the free trade agreement with the GCC
- Negotiations were concluded in September 2023
- Talks also focus on industrial cooperation, agriculture, investment and regional connectivity
ISLAMABAD: Pakistan and Saudi Arabia have renewed efforts to accelerate a free trade agreement between Pakistan and the Gulf Cooperation Council (GCC), seeking improved market access for Pakistani exporters across six Gulf economies.
Commerce Minister Jam Kamal Khan and Saudi Arabia’s newly appointed ambassador to Pakistan, Dr Rajeh Albugamy, discussed the issue in Islamabad on October 31, according to an official statement.
Jam Kamal said the proposed Pakistan-GCC Free Trade Agreement would provide an important opportunity to expand market access, increase bilateral trade and strengthen economic engagement between Pakistan and the Gulf countries.
The renewed push comes more than three years after Pakistan and the GCC concluded negotiations on the agreement in September 2023.
Although both sides finalised negotiations and signed a joint statement at the GCC headquarters in Riyadh, the agreement has yet to become operational.
Pakistan completed its domestic approval process and forwarded the approved agreement text to the GCC Secretariat on December 31, 2025, according to the Ministry of Commerce.
Deputy Prime Minister and Foreign Minister Ishaq Dar said in October that the agreement was close to completion, with approval from one GCC member state potentially outstanding.
The six-member GCC comprises Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman.
The agreement is expected to provide a framework for expanding trade and investment between Pakistan and the Gulf region. However, its actual benefits will depend on the final tariff concessions, product coverage and implementation arrangements.
Industrial and agricultural cooperation
During the Islamabad meeting, Jam Kamal also highlighted opportunities to connect Saudi Arabia’s economic diversification programme, Vision 2030, with Pakistan’s industrial and production capabilities.
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He identified potential areas of cooperation, including expanding production, improving product quality, adopting modern technologies and strengthening industrial competitiveness.
The minister said closer collaboration could help Pakistani businesses meet the Saudi market’s requirements while creating opportunities for mutually beneficial economic activity.
He also stressed the importance of expanding Pakistan’s export base and strengthening private-sector partnerships to translate improved bilateral relations into tangible trade outcomes.
Ambassador Albugamy reaffirmed Saudi Arabia’s commitment to strengthening economic relations with Pakistan and identified regional connectivity and agricultural cooperation as areas with considerable potential.
Both sides agreed to maintain regular coordination and follow-up engagement to advance cooperation in trade, investment and agriculture.
A long-pending regional trade agreement
The Pakistan-GCC agreement represents an important proposed expansion of Pakistan’s trade arrangements with the Gulf.
Arabian Gulf is a major destination for Pakistani workers and a significant source of remittances, investment and energy supplies.
Pakistan’s Commerce Ministry described the September 2023 conclusion of negotiations as a significant development. It marked the GCC’s first concluded free trade negotiations with a trading partner since 2009.
However, the delays in completing the subsequent approval and signing requirements have kept the agreement from entering into force.
Pakistan’s renewed engagement with Saudi Arabia, alongside earlier discussions with Bahrain and Qatar, reflects Islamabad’s efforts to secure support from individual GCC members and move the agreement towards implementation.
The latest meeting did not announce a signing date or a timetable for the agreement to take effect.
Trade and investment cooperation with the Gulf therefore remains an important part of Pakistan’s efforts to diversify exports and strengthen economic links with regional markets.
