ISLAMABAD, Pakistan: A new trade link between China and Pakistan will greatly benefit the United Arab Emirates (UAE) and other Gulf Cooperation Council (GCC) countries over the next five to 10 years, said Asif Durrani, Pakistan’s Ambassador to UAE.
Asif Durrani, who has been in the UAE for the past two years, said the China-Pakistan Economic Corridor, which was introduced in April, would significantly increase trade in the region.
“Chinese trade will grow with GCC countries,” he said.
“In five years, the corridor will become almost fully operational, and Pakistan is the foremost transit country so this will enhance the trade with Pakistan and the GCC. It holds the best promise for GCC oil and gas exports,” he was quoted as saying by Abu Dhabi-based newspaper `The National’.
“This corridor will save large ships time and money through,” Durrani said.
“Right now, it is difficult for oil tankers but this is the largest deep seaport in the region so Pakistan will become the foremost transiting country. The UAE is the hub for the Middle East and North Africa, so this corridor will benefit the UAE a lot.”
Analysts said the corridor is one of the largest trade development projects yet.
“For China, the corridor is critical to the development of its western regions, which lag behind the rest of the country. So there’s important political dimensions for Beijing, as well as economic,” said Sabahat Khan, senior analyst at the Institute for Near East and Gulf Military Analysis in Dubai.
“Beijing is also desperate to get a firm footing in Central Asian markets, and faster, cheaper access to the Middle East for its western regions. Pakistan sits at the crossroads between Central Asia, East Asia, South Asia, and the Arabian Gulf, so the corridor is a game-changer for the entire region.”
He said the project was of great significance for the UAE.
“The UAE will want to position itself to benefit as strongly as possible from the corridor and Gwadar port, which the Chinese have leased for 20 years,” he said.
“The UAE could be looking for equity in projects related to the corridor through investments and joint ventures, and would be keen to get into long-term commercial services agreements.”
“The China-Pakistan corridor is home to a mega project and the potential for energy and other investments is enormous,” said Dr Albadr Al Shateri, senior adviser and researcher with the UAE armed forces.
The relationship between Pakistan and the UAE goes back to the foundation of the Emirates. Pakistan was the first country to recognize the UAE in 1971.
Since then, the UAE has become Pakistan’s largest trading partner among the GCC nations, with bilateral trade reaching $ 9 billion out of $19bn for the GCC.
Source: APP
