According to the State Bank of Pakistan (SBP), commerce between Pakistan and the United Arab Emirates (UAE) reached a healthy $10.1 billion in fiscal year 2025, demonstrating the exceptional pace of the two countries’ bilateral economic ties. This increase demonstrates how crucial collaboration between the two nations is becoming in a number of areas, including as trade, investment, energy, information technology, and human resource development.
The trade balance is still significantly tilted in favor of the UAE notwithstanding these advancements. In FY25, Pakistan’s imports reached around $8 billion, while its exports to the UAE totaled $2.1 billion. While imports rose by $1.62 billion, exports have plateaued as compared to FY24, indicating a 20.24% increase in total bilateral trade from the prior year.
The 12th session of the Pakistan-UAE Joint Ministerial Commission, a significant forum that was gathered after 13 years, was held recently in Islamabad, and the revived vigor of relations was obvious. Trade, energy, aviation, food security, and information technology were among the many topics discussed, demonstrating the two countries’ dedication to deepening their relationship. Experts point out that more legislative actions are necessary to realize this partnership’s full potential.
The Chairman of the Pakistan-UAE Business Council at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Dewan Fakhruddin, underlined the necessity of extending visa exemptions to legitimate investors and business executives outside of diplomatic circles. He contends that this action would promote more direct business-to-business and business-to-government cooperation, which would promote long-term growth in bilateral commerce.
Fakhruddin also highlighted the UAE’s leadership in renewable energy, especially solar power, as an opportunity for Pakistan. Adopting UAE-supported green technologies could help alleviate Pakistan’s ongoing energy crisis and reduce dependence on costly imported fuels, while attracting further investment from Gulf countries.
Trade analysts point out that the UAE ranks among Pakistan’s top three global trading partners and remains the second-largest source of remittances after Saudi Arabia. In FY25, remittance inflows from the UAE reached $7.83 billion, playing a critical role in stabilizing Pakistan’s current account and foreign exchange reserves.
Lahore-based exporter Faizan Majeed underscored the strategic importance of leveraging the UAE’s position as a regional logistics hub. Utilizing Dubai’s ports and free zones, Pakistani exporters could access key African, Middle Eastern, and European markets more efficiently. To capitalize on this, Majeed called for streamlined customs, reduced bureaucracy, and dedicated trade facilitation centers for UAE-bound goods.
Economists predict that with improved policies, elimination of non-tariff barriers, and stronger private sector engagement, Pakistan UAE trade could easily double within five years. The rapidly expanding Pakistani IT and fintech sectors are already attracting Gulf investors, given their innovative talent pool and cost advantages.
Ultimately, fostering private sector partnerships and providing incentives will be crucial in deepening economic ties. Enhanced cooperation between Pakistan and the UAE not only promises increased exports but also regional stability and shared prosperity, opening doors to broader Middle Eastern markets.
