President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance, Chairman of the National Business Group Pakistan, Chairman of the FPCCI Policy Advisory Board, and former Provincial IT Minister, Mian Zahid Hussain, has welcomed the joint trade target during the October 21 meeting in Islamabad between Pakistani Prime Minister Muhammad Shehbaz Sharif and Maldives’ President Dr Mohamed Muizzu to increase bilateral trade between Pakistan and the brotherly Islamic country of Maldives from $13.4 million to $200 million within the next two years. He also welcomed the signing of 20 agreements and memoranda of understanding in various sectors. He said effective implementation of these agreements could increase bilateral trade nearly fifteen times within two years, strengthen economic cooperation in the region and deepen economic relations between the two countries. Pakistan and the Maldives have close brotherly relations based on historical, religious and cultural ties; however, economic and commercial relations have remained far below their actual potential.
Mian Zahid Hussain said the Maldives imports goods worth more than $3.5 billion annually from around the world, including food products, agricultural commodities, textiles, construction materials and pharmaceutical products. However, Pakistan’s share in this market remains below 1%. At present, bilateral trade between Pakistan and the Maldives is only $13.4 million, comprising approximately $13.3 million in Pakistani exports, while imports from the Maldives remain negligible. He said Pakistan’s main exports to the Maldives include medicines, fresh fruits, vegetables, cereals and meat. By comparison, India’s annual bilateral trade with the Maldives is approximately $555 million, while trade between China and the Maldives has exceeded $665 million and trade with the United Arab Emirates stands at around $503 million. Given this context, Pakistan’s trade volume remains disappointingly limited. He said Pakistan’s high cost of doing business prevents exporters from supplying certain products at competitive prices which is the real cause of the meager trade volume between both brotherly countries.
Mian Zahid Hussain stressed that achieving the $200 million bilateral trade target would require more than memoranda of understanding. A comprehensive implementation plan and a reduction in domestic business costs were essential. He said the Maldives, with a population of approximately 531,000, had an economy largely dependent on tourism. More than two million international tourists visit the country every year, generating annual tourism revenues of approximately $5.57 billion. He said that this created sustained demand in the Maldives’ hospitality sector for halal food, dried fruits, bed linen, towels, high-quality surgical instruments and sports goods. Pakistan has a strong international position in textiles, sports goods and agriculture, allowing Pakistani exporters to expand value-added exports to the Maldives. In view of the country’s ongoing development projects, Pakistan also has significant potential to supply cement and other construction materials.
Mian Zahid Hussain said Prime Minister Mian Muhammad Shehbaz Sharif had correctly identified the absence of direct air, sea and cargo links as one of the biggest obstacles to bilateral trade. Since there is no direct shipping line, Pakistani products reach the Maldives through Sri Lanka or Dubai, increasing transit time and freight costs and making them less competitive in the Maldives’ market. He urged the government to establish direct cargo connectivity with the Maldives and develop easier banking channels and a local-currency settlement mechanism between the central banks of the two countries. Negotiations on a Free Trade Agreement or Preferential Trade Agreement should also be completed at the earliest to reduce tariff and non-tariff barriers.
Mian Zahid Hussain said opportunities also existed for Pakistani skilled workers and companies in the Maldives’ information technology infrastructure, cybersecurity, artificial intelligence and tourism-management sectors. The private sector should be given the opportunity to take the lead so that Pakistan’s engagement with the Maldives’ agricultural, food and hospitality sectors could be expanded. He called for the activation of a joint business council through cooperation between the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Maldives National Chamber of Commerce and Industry (MNCCI). Single-country exhibitions and regular business delegations should also be organised. He further said that if the public and private sectors worked effectively on business-to-business contacts, logistics facilitation and the exchange of trade delegations, the $200 million trade target could be achieved within the specified period and eventually increased to half a billion dollars in the near future.