In a promising stride towards enhancing bilateral relations, Egypt and Pakistan are set on strengthening political and economic ties.
Located in close proximity to Gulf countries, Pakistan holds promise as a regional hub and a significant market for trade and investment, leveraging a substantial workforce it is producing a wide array of agricultural products and a diverse. On the international stage, Egypt’s connection with Pakistan is rooted in shared history, culture, and religious kinship. Since Pakistan’s independence in 1947, the two nations have cultivated enduring diplomatic and strategic bonds, shaped by platforms like the Organisation of Islamic Cooperation and the Non-Aligned Movement. Early diplomatic relations flourished under leaders like Gamal Abdel Nasser and Liaquat Ali Khan, marking a shared path of collaboration during the Cold War era. The bonds deepened through military cooperation, with Pakistan supporting Egypt during its conflicts with Israel.
Today, economic ties between the two nations flourish, with textiles, rice, and pharmaceuticals among Pakistan’s key exports, while Egypt supplies chemicals, petroleum, and machinery. Both nations seek to bolster these exchanges through trade agreements that reduce tariffs and promote economic synergy. As cultural exchanges persist—highlighted by the longstanding tradition of Pakistani scholars studying at Egypt’s renowned Al-Azhar University—these two nations continue to strengthen their shared legacy, fostering mutual growth and understanding. Cultural exchanges remain an indispensable pillar in the bilateral relations between Egypt and Pakistan. Egypt’s esteemed Al-Azhar University continues to serve as a beacon for Pakistani scholars while both nations strive to fortify their educational and cultural bonds. Recent high-level diplomatic engagements have underscored a commitment to enhancing cooperation across defense, trade, and diplomatic spheres.
In today’s Egypt, the echoes of the ancient world coexist harmoniously with the vibrancy of contemporary culture. Visitors are invited to immerse themselves in this fusion, where the iconic landmarks of the past—Giza’s pyramids, the awe-inspiring temples of Luxor and Abu Simbel—stand as sentinels of history, while the crystalline waters of the Red Sea beckon adventurers. Nile cruises unveil the scenic grandeur of ancient monuments along its banks, and the bustling markets of Cairo, particularly the bazaars of Khan el-Khalili, offer an immersive encounter with Egypt’s dynamic present. From the serene Siwa Oasis in the Western Desert to the sacred summit of Mount Sinai, Egypt continues to weave its timeless magic upon all who journey there.
For Pakistan, there exists an export potential of around $1.1 billion in Egypt mainly driven by the agricultural sector of $105.7 million, textile sector of $226.5 million, pharmaceutical and surgical sector of $258.0 million, and the plastic and rubber sector of $62.3 million.
A study by the Pakistan Business Council has revealed that bilateral trade between Pakistan and Egypt has been in favor of Egypt for the last seven years because Pakistan’s top exports to Egypt are subject to high tariffs, which are up to 40 percent. However, Egypt is given access to the Pakistani market at relatively lower tariffs of up to maximum 20 percent. It is recommended to initiate negotiations with Egypt to seek tariff parity to enhance Pakistan’s exports to Egypt. Moreover, both countries need to make their visa regimes more friendly, especially for business travelers. The business community recommends the government to work in a PPP mode to help promote the creation of global Pakistani brands. Egypt can be a test case for this. Recently, Pakistan presented its more than 100 top companies in a dozens of sectors for export to MENA countries in Cairo with a view to boost the country’s exports. Furthermore, the government has been working on a strategy to reduce dependence on single source for its energy needs. Signing a long-term deal with Egypt for imports of LNG could be a part of this strategy. Currently, there is no direct flight for Egypt, increasing travel time and restricting the exports of perishable goods. So, it’s urgent need to initiate a direct flight between the two countries.
Reaffirming their commitment to fostering stronger commercial bonds, the Rawalpindi Chamber of Commerce orchestrated a thriving business opportunities conference in September 2023, bringing together over 200 businessmen from both nations. Moreover, highlighting the significance of economic alliances, the Pakistani Ministry of Commerce organized the 4th “Look Africa” conference in Cairo in January 2024, with a special focus on Egypt as a pivotal hub for economic and investment prospects. The concerted efforts made by both countries underscore the shared vision of harnessing mutual prosperity and growth through robust economic engagements.
Coming to the economic tapestry, over the past decade, Egypt’s economic landscape has undergone a remarkable transformation, positioning itself as a thriving hub for trade and investment. Situated at the crossroads of Africa, the Middle East, and Europe, Egypt has attracted a multitude of investors seeking promising opportunities. This strategic positioning was further solidified in March 2024 with the signing of a strategic partnership agreement with the European Union, encompassing contracts worth €7.4 billion. Ambitious projects like the New Administrative Capital, the Suez Canal Logistics Zone, and the coastal city of New Alamein are transforming Egypt’s infrastructure and attracting global investors. Further bolstering the nation’s economic appeal is the recent influx of UAE investments in the Ras El Hekma region on the North Coast, amounting to a staggering $22 billion. These developments underscore Egypt’s commitment to economic diversification and growth, solidifying its position as a dynamic player in the global marketplace.
Under the tenure of Egypt’s Ambassador to Pakistan, His Excellency Dr. Ihab Mohamed Abdel Hamid Hassan, the bilateral relationship has witnessed noteworthy growth. A recent initiative by the Islamabad Chamber of Commerce and Industry organized a visit of ambassadors, diplomats, and top notches of business community to Skardu, where the ambassador, alongside a delegation of foreign dignitaries, had the opportunity to explore the majestic landscapes of northern Pakistan. These endeavors play a pivotal role in nurturing deeper public and diplomatic ties, fostering aspirations for an even more prosperous future between the two nations. The ICCI and its president is committed to strengthening ties with Egypt in all manifestations.
Ghulam Murtaza
The writer is a freelance writer and Secretary General of Islamabad Chamber of Commerce and Industry.
