Pakistan-Africa: New council aims for $15 billion in trade by 2030

The Pakistan-Africa Economic Council (PAEC) was launched in Islamabad with the goal of increasing trade between Pakistan and African countries to $15 billion by 2030. This new platform aims to connect businesses, investors, chambers of commerce, and institutions from both sides around economic projects and partnerships.

The council presents the $15 billion target as a strategic objective rather than an already secured trade volume. It also aims for $2 billion in Pakistani investments in Africa by 2028, according to its official documents.

The inaugural ceremony brought together representatives from several African countries, including Rwanda, Mauritius, Morocco, Zimbabwe, Sudan, Kenya, and Ethiopia. Discussions focused on trade, investment, joint ventures, and strengthening ties between private sectors.

The PAEC intends to concentrate its efforts on sectors where synergies are deemed significant, including agriculture, manufacturing, technology, infrastructure, mining, and services. The council also plans to facilitate access for SMEs to markets and reduce certain non-tariff barriers.

A target significantly higher than current trade levels

The Pakistani Ministry of Foreign Affairs reports that total trade between Pakistan and Africa amounted to $4.44 billion in the 2022-2023 fiscal year, comprising $2.89 billion in imports and $1.55 billion in exports. The main African markets for Pakistani exports at that time were Kenya, South Africa, and Tanzania.

Pakistani exports to the continent include rice, textiles, pharmaceuticals, cement, agricultural machinery, and paper. Conversely, Pakistan imports from Africa primarily coal, petroleum products, tea, cotton, and copper.

The PAEC, registered in Pakistan as a non-profit organization, now seeks to structure these relationships around more targeted projects. Its program aims to connect Pakistani businesses with African partners and develop economic missions, investment opportunities, and joint ventures across various markets on the continent.