For win-win cooperation between Egypt & Pakistan

 

For win-win cooperation between Egypt & Pakistan

 

Analysis by Ahmed Kamel

The post-Covid economic planning should bank on a solid basis for boosting joint investment and trade. The world is changing with the repercussions of the Covid-19, new trade partners should bridge the gap as many world countries may reduce their reliance on Chinese exports.

Egypt should reshape its trade with the world, focusing more on the southern developing world, especially countries like Indonesia, Malaysia and Pakistan.

In a previous article, I argued that India may become a strong candidate to replace China as a major trade and investment partner as part of south-south long-term strategy.  

In the following lines, I will cast light on Pakistan as a potential trade partner in the coming years.

Why Pakistan?

I will not go through the stereotypical rhetoric about history and how Pakistan appointed its first ambassador to Egypt in 1948 [the first Pakistani ambassador sent to the Middle East].

Pakistan is a member of the D-8 countries, which share similar aspects with the Egyptian economy, i.e. growing population, large market and prosperous business potentials for the Egyptian private sector.

In 2018, Pakistan ranked the world’s 39^th economy in terms of GDP, according to World Bank data. Egypt was the world’s 43^rd economy in terms of GDP in 2018. The gap is not big. 

The problem facing the boosting of bilateral trade between Egypt and Pakistan is that both countries have similar needs. Pakistan’s imports are similar to Egyptian imports.

However, a closer look at the two countries’ traded commodities may open up opportunities for cooperation.

Egypt’s foreign trade

Egypt's top exports include crude petroleum, fertilizers, natural gas and gold. Egypt’s agricultural exports include citrus, dried legumes, potatoes, grapes, onion, frozen fruits, frozen vegetables, preserved vegetables, perfume plants, and others.

Egypt’s exports include acyclic alcohols, ammonia, cleaning products, glass, garments, house linens, rubber tires and plastics.

Egypt's top export markets are Italy, the United States, Turkey, the United Arab Emirates and Saudi Arabia.

Egypt’s top imports include wheat, refined petroleum, semi-finished iron, crude petroleum, cars, medicines and palm oil. China, Russia, the United States, Germany, and Saudi Arabia are the top exporters to Egypt.

Pakistan’s trade

Pakistan’s exports include house linens, rice, garments, cotton yarn, sugar, sports equipment, medical instruments and alcohol.  

Pakistan’s top exports markets are the United States, China, Germany, Afghanistan, and the United Kingdom.

Pakistan's imports include refined petroleum, crude petroleum, natural gas, palm oil, and scrap iron.

China, the United Arab Emirates, Saudi Arabia, the United States, and Indonesia are the top exporters to Pakistan.

Win-win situation

From the abovementioned, there are opportunities for both countries on a win-win level. Egypt imports yarn for its textile industry. Pakistani exporters may supply Egyptian-based textile manufacturers with yarn.

The private sector in both countries may start B2B meetings via fairs, expos and other events. The long-term objective is to embark on joint ventures. Pakistani investors may well study the Suez Canal Economic Zone as a base for long-term business strategy.

China, which is a major trade partner of both countries, may become an investment liaison in tripartite projects in the Suez Canal Economic Zone.

China is a leading investor in Egypt and plans to launch an industrial hub in the Suez Canal Economic Zone.

Beefing Egypt

Egypt is one the largest markets for beef. Egyptians just love halal beef, which should be another focus of bilateral trade. The Pakistani authorities should encourage the private sector to boost the country’s bovine exports banking on its cattle inventory.

Egypt imports bovine products from Brazil, India, Sudan and other countries. Surprisingly, Pakistan is not one these countries.