Pakistan and African countries have launched the Pakistan-Africa Economic Council (PAEC) with a target of raising bilateral trade to $15 billion by 2030, as both sides seek to deepen economic ties, promote investment and tap underutilized market opportunities.
The commitment was reaffirmed at the inaugural PAEC ceremony in Islamabad, where representatives from Pakistan and several African countries discussed ways to expand trade, investment, economic cooperation and business ties.
Pakistan’s annual bilateral trade with African countries has remained around $4 billion, highlighting the scale of expansion needed to reach the new target.
The two sides also agreed to bring private-sector stakeholders, including chambers of commerce, closer together and use long-term planning to expand commercial engagement.
“The two sides reiterated their commitment to promoting mutual investment and fully exploiting their untapped resources to take bilateral economic and trade relations to new heights,” according to state-run Radio Pakistan.
Agriculture, IT and minerals among priority sectors
The ceremony brought together ambassadors, high commissioners and consuls general from several African countries, including Rwanda, Mauritius, Morocco, Zimbabwe, Sudan, Kenya and Ethiopia.
Speakers identified agriculture, textiles, pharmaceuticals, information technology, minerals and mining, technology, food, education and infrastructure as sectors with significant potential for trade and investment in African markets.
They also emphasized the large populations, natural resources and expanding markets on both sides as opportunities for greater economic cooperation.
Federal Minister for Defence Production Muhammad Raza Hayat Harraj said the new forum could help strengthen commercial ties between Pakistan and African countries.
“The [PAEC] forum would play a great role in enhancing economic and trade ties between African countries and Pakistan,” he said.
Harraj described the initiative as a milestone in the economic history of both sides and highlighted Africa’s population of around 1.5 billion as a major potential market for Pakistan.
He also stressed the importance of the private sector in expanding economic and trade relations.
Focus on private-sector connectivity
Khyber Pakhtunkhwa Governor Faisal Karim Kundi said the council would work to strengthen economic and trade relations between Pakistan and the African region.
He said Africa had a great future and that a rising Africa and an emerging Pakistan had significant potential for mutual growth.
PAEC Patron-in-Chief Hamid Asgher Khan described Africa as a “slumbering giant” that was awakening and said the continent would play a major role in the global geo-economy.
He argued that stronger economic and trade connectivity between Pakistan, African countries and other potential markets could further strengthen ties.
Khan said existing bilateral trade remained well below its potential and called for efforts to raise it to $15 billion in the coming years.
He also pointed to Pakistan’s IT sector, saying its current economic and trade potential stood at $2.7 billion and could double with stronger connectivity with African markets.
Pakistan seeks broader engagement with Africa
The launch of PAEC comes as Pakistan seeks to expand its economic engagement with African markets as part of efforts to increase exports, investment and connectivity.
Prime Minister Shehbaz Sharif last year directed enhanced engagement with Africa, particularly in trade, investment and commercial relations.
For Pakistan and its African partners, reaching the $15 billion target by 2030 would require a substantial increase in two-way trade, along with greater diversification of products and services, stronger private-sector links and expanded investment and market access.
The newly launched council is intended to provide a platform for advancing that economic agenda.