‘Pakistan to sign up to 10 agreements with Ethiopia’

KARACHI: Ambassador of Ethiopia Jamal Beker Abdula has informed that Pakistan would soon sign around seven to 10 agreements related to trade promotion, political consultations, defense cooperation, aviation, and technology transfer with Ethiopia.

The agreements would be signed this months or in the next month to improve trade relations between the two countries, the ambassador said while exchanging views at the Karachi Chamber of Commerce and Industry (KCCI) on Monday.

“Ethiopia is ready to welcome you in trade, investment and tourism etc and we are ready to assist and facilitate trade by efficiently removing the trade barriers. We need to work together and my country is very clear on improving trade and investment ties with Pakistan,” he added.

Businessmen Group Chairman Zubair Motiwala, KCCI President Muhammad Tariq Yousuf, Senior Vice President Touseef Ahmed, Vice President Haris Agar, former president Majyd Aziz, Khalid Tawab and KCCI Managing Committee Members were also present on the occasion.

Abdula said that the Ethiopian Airlines, which has been flying to 127 destinations, would soon be flying to Karachi as well and the crew of the airline was ready. “We are also working on the modalities so that the goods could directly be transited from Gwadar to Modjo Dry Port in Ethiopia.”

Appreciating the KCCI’s eagerness to enhance trade and investment ties with Ethiopia, he said that Pakistan was a very strong destination for Ethiopian businesses and a very vibrant country. However, lack of information and lack of relationships have created a big gap despite political will, hence, the business communities would have to come forward and navigate so that trade and investment ties could be taken to new heights.

He also announced the appointment of Ibrahim Khalid Tawab as Honorary Consul General of Ethiopia in Karachi who has been appointed to bridge the gap between the business communities of the two friendly countries.

Motiwala stressed to improve people-to-people and business-to-business contacts, for which mutually beneficial policies, regulations and frameworks needed to be devised. “The meager trade volume of just $9 million was nothing therefore, we have to collectively explore what more can be exported to Ethiopia and imported to Pakistan. We are in a perfect position to provide textile products to Ethiopia with excellent quality and better price as compared to what India has been exporting Ethiopia, he added.

Referring to “Look Africa” programme initiated by the government, he said that the purpose was to diversify Pakistan’s exports, which remain mostly confined to US and EU. However, to attain the objective of this programme, there was a need to have free trade agreements with African countries, including Ethiopia.

Focusing on “people to people and business to business interactions have to be particularly focused during the next five years, which would certainly help in attaining the desired results,” he added.

Motiwala said Pakistan’s knitting exports have risen by 76 percent during the last couple of years. Out of Pakistan’s total textile exports of $19 billion, around $7 billion comprise of knitted textiles. However, the trade of this particular product between Pakistan and Ethiopia was too low and should be improved, he added.

Speaking of floods and immense losses of around $70-80 billion, Motiwala said, “We and even the UN’s secretary general appealed for help, but unfortunately, a meagre amount of around $19 million has arrived so far hence, I request the Ethiopian Ambassador to raise voice during his interactions in diplomatic circles so that Pakistan could get the desperately needed support.”

Referring to the ambassador’s remarks about signing of 7 to 10 agreements with the government of Pakistan, he requested to also arrange MoUs between KCCI and its peer chambers in Ethiopia, which would certainly bring the business communities closer and prove fruitful for both the economies.

KCCI President Muhammad Tariq Yousuf said there was a need to look into the possibility of removing trade barriers with a view to promote bilateral business between the two countries. Lack of banking channels has been a main hurdle in expanding trade, while trade via land route should also be taken into consideration, which would considerably bring down the cost.

He noted that Ethiopia has been importing a lot of items from India and China, which could also be provided by Pakistan, particularly textiles and pharmaceutical products. “Any trade inquiry or requirement reaching the Ethiopian Embassy may please be forwarded to KCCI and the same will be disseminated not only amongst KCCI members but to all other trade associations nationwide so that our exports could be improved,” he said.