Instead of the feared diplomatic fallout, the Saudi led blockage has created new export opportunities for Pakistan. While Iran and Turkey went on a forefoot by signing a memorandum of understanding with Qatar for accelerating trade with the Gulf state, Pakistan’s support has been quieter yet significant in terms of export percentages and opportunity available.
Pakistan’s total bilateral trade with Qatar in FY17 was $1.2 billion of which $52 million were Pakistan’s exports to Qatar. Since June this year, Pakistan’s exports in October have increased by 35 percent. On an average, since June, the month-on-month increase in exports has been 51 percent. Rice, vegetables and bed linen were the main exports to Qatar in FY17,
In terms of total volume, Pakistan’s exports have risen by just a few million dollars. However, there is a lot more scope especially for food items. In a statement by Ali Shareef Al Emadi, Qater’s Finance Minister talked about importing food items from countries other than Saudi and UAE. Dairy products have been the top import of Qatar from Saudi for the last three years. Egypt and Yemen export fruits and nuts, while UAE also exports cement to Qatar. Together, the value of the potential market and opportunity available for Pakistan is over $1billion.
In his statement, the finance minister talked about bypassing Jebel Ali port in UAE through the newly opened Hamad port which launched new maritime routes to various countries including Pakistan. A Qatari shipping company Milaha is set to launch what is called the fastest direct service between Doha and Karachi. Using the Hamad port, the new maritime route will decrease the transit of 6 to 7 days to 4 days instead of the usual route that involved Dubai’s Jebel Ali port, and decrease shipping costs by more than 30 percent.
This new service, called PQX, is planned to be used mainly to bring perishable products and other food items from Pakistan while outbound vessels are expected to transport petrochemicals to Karachi.
It is heartening to see Pakistan stay aloof in times of a political crisis and quietly make in-roads in an increase in exports. Of course, it helped that there was little choice in the matter since Saudi-Sharif ties are well known while Qatar stepped in to help the Sharif family during Panama crisis. Caught between two allies, remaining neutral was the only option. For once, Sharif family’s personal allegations have worked in favour of Pakistan’s economy. It remains to be seen how far Pakistan will be able to make the most of it.
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