Strengthening Bilateral Ties: Exploring the Economic Relationship Between Pakistan and Egypt

Introduction

The diplomatic ties between the Arab Republic of Egypt and the Islamic Republic of Pakistan have their origins dating back to 1947, when Pakistan's founder Muhammad Ali Jinnah embarked on a significant visit to Egypt upon the special invitation extended by King Fuad. This marked the initiation of their modern bilateral relations. With mutual embassies established — Egypt's in Islamabad and Pakistan's in Cairo — both nations share membership in significant international organizations such as the Organisation of Islamic Cooperation (OIC) and the "D8".

Egypt and Pakistan both enjoy the status of Major Non-NATO Allies, which entails access to certain levels of military equipment and resources from the United States. The foundation of their strong bond can be traced to their concurrent emergence as modern nation-states in an era marked by nationalism, each characterized by a predominant Muslim population. Egypt's historical figurehead is Muhammad Ali of Egypt, paralleling Pakistan's reverence for its founder, Muhammad Ali Jinnah.

The connections between Pakistan and Egypt are rooted in history, culture, and tradition, notably spanning back to the 1940s when both nations attained their independence. Egypt's prominence within the Arab and African world underscores its stature, while its progress on both economic and societal fronts serves as a noteworthy example for developing nations. This enduring relationship is a testament to the shared values and aspirations of these two nations.

This article delves into the intricate tapestry of the Pakistan-Egypt relationship, shedding light on the evolution, key sectors of engagement, shared aspirations, and the broader impact their economic partnership holds on regional and global dynamics.

Pakistan Egypt Relations

In an increasingly interconnected global landscape, diplomatic relationships between nations have taken on heightened significance, with economic ties often serving as a cornerstone of these alliances. Among such partnerships, the relationship between Pakistan and Egypt stands as a testament to the potential for collaboration and mutual growth. United by historical, cultural, and geopolitical bonds, these two nations have cultivated a multifaceted association that extends beyond politics and transcends into the realm of economic cooperation.

• Economic :

  In terms of economic ties, the trade volume between the two nations surged by 55% during the 2007-2008 period, reaching a total of $313 million. However, this figure remains relatively modest when compared to the considerable potential and the close rapport shared between both countries.

  Within the realm of investment, a notable player in the Pakistani market is Orascom Telecom Holding (Mobilink) from Egypt, which has actively invested over 2 billion USD in the telecommunications sector. Conversely, Pakistani investments, particularly in the textile industry, have found a footing in Egypt.

  Egypt's Al-Azhar University extends annual scholarships to Pakistani students, a number that is anticipated to rise from 30 to 50. Moreover, 30 Egyptian professors have been dispatched to teach at the International Islamic University in Islamabad. In a reciprocal gesture, Pakistani scholars benefit from scholarships provided by Egypt's Ministry of Agriculture.

  The cooperative landscape between Egypt and Pakistan is broadening, encompassing fields such as agriculture, healthcare, higher education, technical support, information and communication technology (ICT), among others. Looking at trade cooperation, the exchange of goods between the two countries reached $741 million in 2012, a decrease from the $864 million recorded in 2011. Egypt's exports to Pakistan stood at approximately $82 million, while imports amounted to $658 million.

  During Pakistan's efforts in combating terrorism, Egypt has demonstrated unwavering support. In a noteworthy display of solidarity, Egypt's former President Hosni Mubarak directed an Assistant Foreign Minister to visit Islamabad in May 2009, conveying Egypt's backing for Pakistan. Egypt was the first nation to dispatch relief supplies for the Internally Displaced Persons (IDPs) and has continued to provide humanitarian aid for this cause in Pakistan.

• Political :

  In 1951, a friendship agreement was inked between the two nations, underscoring the robust bonds they share. President Gamal Abdul Nasser's inaugural visit to Pakistan in 1960 marked a significant milestone, and his intervention in 1965 played a pivotal role in halting the Indian-Pakistani conflict. During the 1973 Egyptian-Israeli war, Pakistan provided a haven for Egyptian warships, effectively contributing to Egypt's eventual triumph.

  United by their common interests, Egypt and Pakistan are active participants in the Organization of the Islamic Conference (OIC) and the D-8 Organization for Economic Cooperation. Their collaboration extends to diverse arenas within international organizations. In a notable joint effort under the OIC banner, Egypt and Pakistan advocated for a resolution in the UN Human Rights Council to curtail the defamation of religion, representing the stance of the Muslim World.

Pakistan And Egypt Recent Agreements

Over the course of their historical relationship, Pakistan and Egypt have entered into numerous agreements of significant importance. A selection of these pivotal agreements includes:

• Trade and Investment Agreement (2007):

  In 2007, Pakistan and Egypt signed a Trade and Investment Framework Agreement (TIFA) to promote and facilitate bilateral trade and investment between the two countries.

• Cultural Exchange Agreement:

  Pakistan and Egypt have historically maintained cultural ties, and agreements related to cultural exchange have been in place to promote mutual understanding and cultural cooperation.

• Bilateral Cooperation in Agriculture:

  Both countries have explored cooperation in the agricultural sector to enhance agricultural productivity, technology exchange, and knowledge sharing.

• Defence Cooperation:

  Pakistan and Egypt have had discussions regarding defence cooperation, including sharing military experiences and potential collaboration in the defence industry.

• Tourism and People-to-People Contacts:

  Both countries have aimed to strengthen tourism ties and encourage people-to-people interactions through various agreements and initiatives.

• Diplomatic Visits:

  Diplomatic visits at the highest levels, such as visits by heads of state or foreign ministers, contribute to strengthening bilateral relations and often lead to discussions on various agreements.

• International and Regional Forums:

  Pakistan and Egypt collaborate within international and regional forums such as the Organization of Islamic Cooperation (OIC) and the D-8 Organization for Economic Cooperation, further deepening their diplomatic ties.

• On July 24, 2023:

  A significant encounter took place as Mr. Zaildar Ahsan Shah, the Managing Director of Elaan Consultancy, and Mr. Khalid Taimur Akram, an Advisor at House of Elaan, convened with Staff Brigadier General Mohamed Saad, the Egyptian Defence Attaché at the Embassy of the Arab Republic of Egypt, Defence Attaché Office. During this meeting, Mr. Zaildar Ahsan Shah and Mr. Khalid Taimur Akram had the opportunity to provide an extensive overview of Elaan Consultancy's operations and ongoing projects. The participants engaged in discussions concerning potential Business-to-Business collaboration prospects. Furthermore, the dialogue explored how the Egyptian Embassy could potentially connect Elaan Consultancy with prospective clients for future collaborative initiatives. This interaction not only facilitated an exchange of information but also paved the way for the exploration of mutually beneficial opportunities.

  
• On August 10, 2023:

  Mr. Ovais Ali Khokhar, the CEO of House of Elaan and Chairman of the Board of Experts at the Pakistan Research Centre for a Community with Shared Future (PRCCSF), hosted a dinner at a local hotel in Islamabad. The event was held in honor of Brigadier General Mohammad Saad, the Defence Attaché from the Embassy of the Arab Republic of Egypt. Zaildar Ahsan Shah, the Managing Director of Elaan Consultancy, and Mr. Khalid Taimur Akram, the Executive Director of PRCCSF, were also in attendance. During the gathering, Mr. Ovais Ali Khokhar provided insights into the diverse range of companies and businesses operating under the House of Elaan's umbrella. The Egyptian Defence Attaché extended an invitation for the management of House of Elaan to visit Egypt and explore various business prospects in the country. A discussion about multiple business opportunities in Egypt was also a key highlight of the event.In light of the productive discussions, a collaborative decision was reached. Elaan Consultancy will collaborate to organize a roundtable discussion targeted at Pakistani businessmen. The aim of this discussion will be to inform them about the potential investment opportunities available in Egypt.

  

Elaan Consultancy has set its sights on enhancing the collaboration between the Egyptian and Pakistani governments, fostering stronger bilateral relations on both national and international platforms. To actualize this goal, the consultancy is preparing to convene a roundtable conference in the upcoming months. The central theme of this conference revolves around bolstering economic ties between Egypt and Pakistan. The event will bring together key participants including representatives from the Egyptian embassy and government officials from both nations. The conference aims to facilitate constructive dialogues that delve into the historical, cultural, economic, and political facets of the relationship between these two countries.

Conclusion

The purpose of this article was to illuminate the enduring relationship between Pakistan and Egypt over the course of history. It is truly captivating to observe how these two nations have remained intertwined across centuries, facilitated by trade, tourism, and notably, a shared culture. As we look ahead, we aspire to fortify the bond we share with our Egyptian counterparts, extending warm invitations to our cherished homeland while also standing ready to provide assistance during any forthcoming events. With optimism, we anticipate that this collaborative endeavor will yield mutual benefits for both countries, fostering a deeper and more resilient connection between them.