OIman and Pakistan are strategic partners and neighbours. The arch of political, parliamentary and military exchanges has been growing since 2017. Pakistan and its people hold His Majesty Sultan Qaboos and the Omanis in high esteem.
Oman places heavy emphasis on the values of tolerance, peace and coexistence with other faiths. Oman relationship with Pakistan has been established on a solid foundation originating before contemporary Pakistan. There are strong reasons for further bilateral cooperation in defence, trade, tourism, human resources, oil and gas, ports, industry, China–Pakistan Economic Corridor, infrastructure and foreign policy.
Most recently, both countries have agreed to enhance cooperation in trade and economy. It is hoped that the creation of Pakistan-Oman Friendship group in Oman’s Majlis Ash’shura would further connect the two countries. Moreover, regular political consultations and joint commission would promote and expand bilateral ties in diverse fields.
However, bilateral trade can be boosted by taking advantage of geographical proximity, the investment friendly policies of Pakistan, and Pakistan’s potential of exporting food items, construction materials, leather and surgical goods to Oman.
Pak-Oman Investment Company is the prime example of increasing financial cooperation between the two countries which has been established with $100 million during the visit of His Majesty Sultan Qaboos. It has a strong focus on infrastructure development and SME financing. It is one of the seven joint ventures (JV) which Pakistan has established with its strategic partners including China, Saudi Arabia and Brunei, to name a few. Pak-Oman is one of the most profitable such JV for the last many years. The assets of the company have now increased up to $600 million.
Pakistan and Oman desires to boost bilateral ties in petroleum sector. The delegation from Oman showed the desire of expanding ties with Pakistan. The delegation displayed a keen interest in getting engaged with the petroleum sector of Pakistan including the signing of a MoU with Pakistan LNG Ltd.
The bilateral trade relations between Pakistan and Oman are on the rise. According to Pakistan’s official figures (February 2018), Pakistan exported goods to Oman worth $142.3 million, which is 67 per cent higher than $85.2 million worth of exports in 2017. The volume of goods imported from Oman was recorded at $234.1 million in 2018, higher by 21.7 per cent, compared to $192.4 million worth of imports in 2017.
The trade balance, which stood at $91.8 million, has bettered by 14.9 per cent in favour of Pakistan as compared to $107.19 million in FY17, yet it needs attention of the authorities as to how Pakistan’s volume of export to Oman could be enhanced.
For the further strengthening of bilateral trade and business activities between both the countries, a joint business council of Chambers of Commerce of Pakistan and Oman is going to set up in Oman. Pakistan’s exports to Oman stand at approximately $118 million, well below to its potential. The poultry industry, for instance, is a niche that Pakistan could foster trade with Oman. Presently, Oman imports around 57.5 per cent of its poultry, while Pakistan produces a poultry surplus. Likewise, Oman could export energy resources to Pakistan.
Most recently, Oman’s Chief of Staff of Sultan’s Armed Forces Lt Gen Ahmed bin Harith al Nabhani visited Pakistan and met with various high officials including Prime Minister Imran Khan who reiterated the government’s resolve to further deepen bilateral cooperation between Pakistan and Oman in diverse fields. The Prime Minister highlighted the close, cordial relations between the two brotherly countries.
Joint ventures, foreign direct investments, free economic zones/corridors and above all strong political commitment play an important role in achieving sustained bilateral relations.
Dr Mehmood Ul Hassan Khan
Oman Observer is now on the WhatsApp channel. Click here
