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UAE-Pakistan Trade Agreement: CEPA Enters Final Stage to Double Trade

Feb 11, 2026 | Current Affairs, Economy

The United Arab Emirates and Pakistan are in the final stages of signing a Comprehensive Economic Partnership Agreement (CEPA), a historic trade deal aimed at doubling bilateral trade from the current $10 billion to $20 billion within the next few years.

Ambassador Hammad Obaid Ibrahim Salem Al-Zaabi shared these updates on Tuesday, February 10, 2026, while addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI).

Strategic Goals: Beyond the $10 Billion Ceiling

Ambassador Al-Zaabi emphasized that the current trade volume—ranging between $8 billion and $10 billion—does not reflect the “true depth” of the brotherly relations between the two nations.

  • Trade Target: The primary objective of the CEPA is to hit a $16–20 billion trade volume by removing tariff barriers and streamlining customs procedures.
  • Investment Surge: The UAE is expanding its footprint in Pakistan through the Special Investment Facilitation Council (SIFC), targeting:
    • Infrastructure & Logistics: Development of ports and aviation facilities.
    • Agriculture: High-tech food security and supply chain projects.
    • Railways: Progressing talks for a dedicated supply chain link from northern Pakistan to Karachi, potentially including a new dry port.

Digital & AI Transformation

Reflecting the UAE’s shift toward a knowledge-based economy, the Ambassador highlighted that 99% of UAE government services are now online and AI-driven.

  • Streamlined Visas: Both governments are working to fully digitize and streamline the visa process to facilitate easier business travel.
  • Skilled Labor Mobility: Discussions are underway with the Punjab Skilled Labour Authority to align Pakistani manpower with the UAE’s demand for high-tech and specialized professionals.

Key Trade Statistics (FY 2024-25)

LCCI President Faheem Ur Rehman Saigol noted that while the partnership is strong, there is a significant trade imbalance that the CEPA aims to address:

Metric Value (Approx.)
Pakistan Exports to UAE $2.1 Billion
Pakistan Imports from UAE $8.0 Billion (Mainly Petroleum)
Remittances from UAE (2024) $7.8 Billion

What’s Next?

The Joint Business Council is being reactivated to provide an institutional framework for these deals. Ambassador Al-Zaabi confirmed he is “personally working at an operational level” to ensure that the CEPA is not just signed, but effectively implemented to provide immediate relief to businesses on both sides.

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