The annual trade exchange value of Ethiopia and pakistan reached 46.6 million USD
Addis Ababa 2/14/2023(MOTRI) The government of Ethiopia and Pakistan have made consultatioins on ways of strengthening their trade and economic relations and have signed bilateral trade agreements that enables them to work cooperatively with the view of increasing mutual trade flows.
The purpose of signing this cooperative trade agreement is also to enable the governments of the two countries to work cooperatively and further strengthen their trade relationship.
During the occation of the signing, Mr. Kasahun Gofe, the state minister for trade relation and export promotion sectore mentioned that Ethiopia and Pakistan have been enjoying friendly relations since the establishment of their diplomatic relations in 1958 and has been trengthen the relationship after the opening of the Pakistan embassy in Addis Ababa in 1973.
As the state minister stated, Since Pakistan has been Ethiopia’s development partner, the its Governmet has provided scholarships and training to Ethiopian students and government officials in the areas of capacity building and human development.
Besides, Ethiopia’s government encouraged Pakistani businessmen to make investment in Ethiopia including textile industries, furniture factories and food-related industries.
Currrently, the two countries’ annual trade exchange value reached 46.6 million USD in 2022 and the share of Ethiopia’s export and import trade was about 16.5 million and 30.1 million USD respectively.
The annual average trade exchange value of the two countries in the past five consecutive years (2018-2022) was about 71.8 million USD of which Ethiopia’s export and import trade constituted 14.3 million and 57.5 million USD respectively. This figure shows that the trade turnover of the two countries trade has not steadily grown up to the extent of the market potential and the trade belance was favored by Pakistan.
The trade data indicates that Pakistan has the potential to import Ethiopia’s main export products which include oil seeds, pulses, live animals, dairy products, spices and tobacco.
Likewise, Ethiopia has the market potential to import goods that Pakistan has extensively exported to other countries, including textiles and apparael, pharmaceutical supplies, chemicals, plastics, rice, and seafood products.
Thus the two countries’ trade exchange can be highly expanded both in volume and diversification of trade goods if they establish a platform that would help to promote export products and facilitate the linkage between the exporters and importers of those products.
This agreement can create a conducive environment for the business communities of the two countries to have information on business opportunities, organize trad epromottion programs, and explore the trade potentials of the two countries.
Mr. Muhammed Sualeh Ahmad, Secretary General in the Ministry of Commerce of Pakistan on his part said that the agreement is not only for bilateral relation bult also to looking and changing the opportunities to development of the two countries.
The officials who signed the agreement confirmed that both countries are determined to implement the agreement in a short period of time.