KARACHI: Trade and industry have drawn the attention of policymakers towards the currency swap agreement recently reached between India and United Arab Emirates (UAE), and warned that it would open up new avenues of trade between these two countries.

Most of the business leaders have urged the government to look into this matter and try to offset the expected negative impact on Pakistan’s bilateral trade with the UAE by reaching a similar agreement.

The President of Lasbela Chamber of Commerce and Industry Yakqoob Karim commenting on this arrangement between India and the UAE said that it would immensely facilitate the business community of these countries.

The two-way trade between India and the UAE, he said, had already crossed the figure of $55 billion with a target of $100bn set for 2025, which would be easily achievable due to the currency swap agreement.

Chairman Pakistan Bedwear Exporters Association Naqi Bari said that presently, the bilateral trade between the UAE and Pakistan stands around $8.3bn and has recorded a growth of 9.4 per cent during 2016-17.

But unfortunately, Pakistan’s exports to the UAE stand at $1.75bn only, representing only 7pc of the country’s total exports, he added, whereas the UAE’s exports to Pakistan stands at $7.3bn with oil and gold topping the list of products. Pakistan mostly exports food and textile to the UAE.

By reaching the currency swap agreement, the businesses of the two countries would be able to bypass any other foreign currency as both the countries would be trading directly in AED and Indian rupee, he added.

Chairman of Pakistan Apparel Forum Jawed Bilwani said that the agreement will mean large savings for business communities of both the sides as their trade will soar to new highs.

“It is an agreement between the central banks of both the countries,” he maintained.

Mr Bilwani said that Pakistanis have invested over $100bn in UAE which is one of the largest investments by a single country but we are unable to get even a remote benefit from the UAE government just because of our redundant trade and foreign policies of the government.

Published in Dawn, March 3rd, 2018