Maps
Magazine

TRADE & ECONOMY

Pakistan, Oman Aim to Expand Trade Beyond Traditional Sectors
Pakistan & Oman’s trade reached $897M in 2024, but untapped potential remains! Pakistan can expand exports in rice, poultry, IT & engineering while attracting Omani investment in energy & SEZs.
ND
by News Desk
2025-02-19
Pakistan, Oman Aim to Expand Trade Beyond Traditional Sectors

Pakistan and Oman have consistently expanded their trade and economic cooperation, yet the full potential of their bilateral trade remains underutilized. While Oman remains a key trading partner within the Gulf Cooperation Council (GCC), a trade imbalance persists, presenting an opportunity for Pakistan to enhance its exports.

Pakistan-Oman Trade Overview in 2024

In the fiscal year 2024, bilateral trade between Pakistan and Oman reached $897 million, reflecting a slight increase from previous years.

  • Pakistan’s exports to Oman: $203 million
  • Imports from Oman: $694 million

The trade balance remains in Oman’s favor, primarily due to its energy exports. However, this presents a significant opportunity for Pakistan to explore high-demand sectors and diversify its export base.

Oman’s Economic Landscape & Pakistan’s Export Potential

Oman, strategically positioned at the crossroads of Asia, Africa, and Europe, has maintained economic stability, with a current account surplus of 2.3% of GDP in 2024 and inflation declining to 1.3%. The country’s Vision 2040 initiative, focusing on privatization, fiscal consolidation, and renewable energy, offers a golden opportunity for Pakistan to expand its trade footprint.

Key export opportunities for Pakistan include:
✔ Rice: High-quality Basmati rice has strong demand in Oman, and setting up joint rice processing and packaging units could streamline supply chains & increase exports.
✔ Poultry & Processed Foods: Oman’s rising food demand presents an opportunity for long-term poultry trade agreements and joint farming ventures.
✔ Textiles & Apparel: Pakistan’s home textiles and apparel industry can capture a larger share of Oman’s retail market.
✔ Pharmaceuticals & IT: Pakistan can supply high-quality medicines, software solutions, and digital services to Oman’s growing industries.
✔ Engineering & Manufacturing: Demand for industrial equipment, construction materials, and telecom devices aligns with Pakistan’s manufacturing capabilities.

Investment & Joint Ventures: A Key Growth Driver

Strengthening investment ties can drive economic growth for both nations. Omani investors can explore opportunities in Pakistan’s Special Economic Zones (SEZs), which offer:
✅ Tax incentives & modern infrastructure
✅ Strategic regional connectivity
✅ Partnerships in steel, construction, energy & logistics

Additionally, Oman’s expertise in LNG infrastructure can support Pakistan’s energy transition, as the country seeks to boost LNG import capacity. A long-term energy partnership with Oman can further stabilize Pakistan’s energy supply chains.

The Way Forward: Unlocking Full Trade Potential

To maximize economic cooperation, both countries should:
➡ Facilitate business linkages & trade missions
➡ Develop a dedicated digital trade platform for market insights & investment opportunities
➡ Enhance regulatory frameworks to ease cross-border transactions

With proactive policies & economic linkages, Pakistan and Oman can transform their trade relationship into a dynamic and mutually beneficial partnership, expanding beyond traditional sectors and unlocking new opportunities for sustainable growth.

The author is a research associate at a Karachi-based think tank specializing in international trade, public policy, and agriculture.
Tagged:

BilateralRelations

EconomicCooperation

InvestmentOpportunities

PakistanOmanTrade
Share News: