Pakistan Sign Historic Agreement with GCC

Unlocking Trade Horizons: Pakistan's Milestone Agreement with GCC

After 19 years of anticipation, Pakistan and Saudi Arabia forge a groundbreaking investment consensus, paving the way for a long-awaited free trade agreement with the Gulf Cooperation Council (GCC).

Interim Commerce Minister Gohar Ejaz led a high-powered delegation in Riyadh for critical discussions, finalizing the investment segment crucial for GCC Foreign Ministers' meeting approval in Doha. This significant agreement could become the first in 15 years for the GCC.

Dispute Resolution Innovation:

The resolution of local disputes within eight months before resorting to international courts marks a pivotal decision. Minister Ejaz highlights a graduated approach, fostering mutual settlement between investors, enhancing the dispute resolution process.

Historical Agreement:

Initially conceptualized in 2004, the FTA journey faced delays until revived in 2021. The recent investment chapter, demanded by Saudi Arabia, brings both nations closer to a mutually beneficial agreement that can boost Pakistan's exports to the GCC bloc.

Investment Template Evolution:

Pakistan's response to ICSID penalty led to a new investment treaty template focusing on local arbitration. Saudi Arabia's insistence on ICSID inclusion prompted a revision, leading to a three-pronged international arbitration approach approved by the Special Investment Facilitation Council.

Cabinet Approval and Expanded Agreements:

Interim Prime Minister Anwaar ul Haq Kakkar oversaw the cabinet's approval of the revised investment template. The expanded chapter now includes international arbitration bodies for dispute resolution with Saudi Arabia and Qatar, applying to future GCC investments.

Pakistan's strategic negotiation and willingness to adapt have unlocked the potential for enhanced trade and investment with the GCC. This historic agreement signifies a positive step towards strengthening economic ties and fostering regional cooperation.