Pakistan Aims to Boost Trade with East Africa Amid Global Trade Tensions

In the face of increasing global trade disputes ignited by the United States’ imposition of trade tariffs, Pakistan is focusing on enhancing its commerce with the East African Community (EAC) through the establishment of novel maritime trade routes.

The East African Community, a bloc of eight nations—Burundi, the Democratic Republic of the Congo, Kenya, Rwanda, Somalia, South Sudan, Tanzania, and Uganda—boasts a population exceeding 500 million and a combined gross domestic product (GDP) approximating $345 billion.

According to data from the State Bank of Pakistan (SBP), Pakistan’s aggregate trade volume with Eastern Africa for the initial three quarters of the current fiscal year (FY25) totaled $1.30 billion.

During this period, Pakistan’s exports to Eastern Africa amounted to $617.12 million, while imports reached $688.20 million. Kenya emerged as the primary hub for both import and export activities.

Haleon Pakistan recently dispatched its inaugural Centrum shipment to Kenya, marking a significant milestone in trade relations.

Federal Minister for Maritime Affairs Junaid Anwar Chaudhry announced on Saturday the forthcoming launch of maritime trade corridors designed to amplify trade with the EAC.

“Our objective is to equip Pakistani industrialists, exporters, and investors with a streamlined and effective channel to harness the potential of the thriving East African market,” Chaudhry stated.

“This strategic endeavor is poised to not only augment our export capabilities but also foster Pakistan’s economic advancement by unlocking new avenues for trade and investment,” he added.

A report suggests that the United States’ tariff measures could jeopardize Pakistan’s $3.3 billion trade surplus with the US.

The minister underscored that the development of these maritime corridors would act as a stimulant for enhanced bilateral trade partnerships between Pakistan and the EAC member states, which “are experiencing rapid economic expansion, presenting substantial trade prospects, notably in the agriculture, textile, manufacturing, and technology domains.”

Junaid Anwar Chaudhry further mentioned that an inter-ministerial group, comprising pertinent ministries and stakeholders, will be assembled to guarantee the plan’s effective execution.

“These institutions will function under a unified, coordinated structure to deliver comprehensive assistance in areas such as commerce, finance, diplomacy, and technology,” the minister elaborated.

“This cooperative initiative will assure that Pakistani enterprises possess the requisite resources and backing to prosper within the East African marketplace.”

Chaudhry further noted that the initial phase of the strategy encompasses the establishment of a direct shipping route linking Karachi Port with Djibouti, a pivotal gateway to East Africa.

“Djibouti serves as a crucial logistics center for the region, facilitating effortless access to ports in neighboring nations, including Somalia and Ethiopia.

“The commencement of the Karachi-Djibouti shipping line will substantially curtail transit durations and expenses, empowering Pakistan to export commodities more efficiently and at competitive prices,” the minister explained.

Concurrently, the subsequent phase of the plan entails the comprehensive advancement of Gwadar Port, transforming it into a dedicated export center tailored to serve the African market.

“Gwadar, strategically positioned on the Arabian Sea, possesses considerable potential to evolve into a cornerstone of Pakistan’s maritime trade infrastructure, granting direct entry to both the Middle East and Africa,” the minister remarked.

He highlighted the beneficial influence of the novel trade corridors, conveying confidence in achieving the intended export targets.

The minister accentuated that amplified exports would signify a substantial economic prospect for Pakistan, not only by elevating revenue but also by reinforcing connections with East African countries.

“Pakistan boasts a robust industrial foundation, and our products, spanning from textiles and agricultural goods to pharmaceuticals and machinery, enjoy considerable demand in East Africa. Our intention is to supply a straightforward and productive channel for these products to reach consumers throughout the region, while simultaneously nurturing enduring alliances with EAC nations,” he concluded.

Earlier in the month, US President Trump sparked a potentially devastating global trade conflict by imposing extensive tariffs on imports from across the globe and severe additional levies on key trade partners.

Trump enforced a 29% reciprocal tariff on Pakistan, in addition to over 185 countries and territories, asserting that Islamabad imposes a 58% tariff on goods imported from the US.

The Pakistani government stated last week that it would dispatch a high-ranking delegation to the US to promote trade relations and engage in discussions regarding the reciprocal tariff.

According to a Reuters report on Thursday, Asian governments, including Pakistan, might procure greater quantities of US oil and gas as they endeavor to reduce their trade surplus with Washington, aiming to alleviate their tariff burdens under Trump’s novel import duties.

Amidst escalating global trade tensions, Pakistan’s strategic shift towards the East African market, facilitated by the establishment of new maritime trade corridors, underscores its commitment to diversifying exports and safeguarding its economic interests.