The world is evolving rapidly. Resultantly, new world order and modern state ideas are emerging. The traditional divisions are diminishing. Politics, demography, economy, security, geography, and peace all together form an organic mix. Today, the world is the centre of major powers’ rivalries and new readjustments are taking place in response to rising traditional and non-traditional threats and challenges, particularly in the economic and security realms.
Africa is considered as an important territory and it is the centre of focus, particularly that of middle and major powers. It is a continent comprising 1.3 billion people and 54 sovereign states. Most African countries are expected to reach the middle-income status by 2025 as per the World Bank estimates. The African region has a vast import market, and rich mineral resources, and has observed positive growth patterns in recent years in terms of its economy.
The world has seen remarkable development in Africa in terms of combating climate change, alleviating poverty, building infrastructure, developing agriculture, and fighting terrorism. Six out of the ten fastest growing economies of the world are from Africa. Apart from the global economic slowdown, the African economies have been seen making progress and would continue doing so in the near future. Hence, it is rightly seen as the continent of the future.
The UN sub-region of North Africa is a dynamic region that comprises seven countries, that is, Algeria, Sudan, Western Sahara, Egypt, Libya, Morocco, and Tunisia. Geographically, the UN sub region of North Africa positions itself between the Mediterranean and Sahel region. This region has been the focus of numerous cultures, religions, and civilizations. The Romans, Greeks, Christians, Turks, and Arabs all left significant marks in this region. This region has the commonality of a Muslim majority population, Arab lineage, and a progressive and liberal outlook.
It is considered to be one of the wealthiest regions of the African continent both due to its natural resources and closeness to the European market and its proximity to international trade routes. It generates one-third of Africa’s total GDP. Each region or country establishes its relations based on certain interests, and these interests are mainly economic and geopolitical in nature. Although Pakistan has been regularly interacting with African countries on a broad range of regional and global challenges, yet a vast potential of mutual trade remains mostly untapped. Particularly the bilateral trade and economic potential on both sides has not been fully explored. The level of trade and economic cooperation is far below the potential.
Africa offers a lot of opportunities, but Pakistan’s export potential cannot be utilized unless the issues of supply capacity, trade policy and facilitation are first addressed. It has been the norm to send uninvited and incapable diplomats, missions, and personnel to African countries. These diplomats then perform their duties with disinterest. Pakistan needs to send competent trade missions to these countries so that a profound representation and cooperation on both sides could be ensured up to the potential.Â
The diverse economies of North African countries and Pakistan provides an opportunity to take full advantage of economic trade, and economic potential on both sides. Though each country has its own unique economic features, there are numerous areas where joint collaboration can lead to valuable results. The diverse economies of North African countries, and Pakistan with particular strengths in textile, agriculture, services, infrastructure development, manufacturing, pharmaceuticals, defence equipment and tourism, provide promising prospects for cooperation and its expansion can boost the economic growth on each side and can create mutually valuable outcomes for their economies. Pakistan has vast opportunities and potential in the investment, trade, import, and export areas with North African countries.
There are also some challenges in this aspect as well. North Africa is economically, strategically, and politically closely linked to the EU. Therefore, it is difficult for exporters or investors of other countries and regions to establish a strong trade and economic presence in the region.
The lack of political contact with these countries is another major challenge as Pakistani leaders have traditionally looked to North America, Western Europe, or the Gulf states for economic prospects. The North African region has not received comprehensive attention, and nor have other African regions. This lack of political will has led to weak political interaction which is affecting the level of trade and economic cooperation and has become a challenge.
The territorial and unsolved boundary issues such as between Egypt and Sudan, Algeria and Morocco, the situation in Libya, and the Western Sahara/ Sahrawi Republic issues are major obstacles and challenges to fully utilize the trade and potential on both sides. In addition, limited connectivity, complex customs procedures, differences in regulatory frameworks, currency exchange risks, lack of trade agreements, limited market information, cultural and language differences are major challenges that hinder the growth of trade relations on both sides.
Africa offers a lot of opportunities, but Pakistan’s export potential cannot be utilized unless the issues of supply capacity, trade policy and facilitation are first addressed. It has been the norm to send uninvited and incapable diplomats, missions, and personnel to African countries. These diplomats then perform their duties with disinterest. Pakistan needs to send competent trade missions to these countries so that a profound representation and cooperation on both sides could be ensured up to the potential. It is essential for the North African countries and Pakistan, to strengthen institutional frameworks by reducing tariffs, simplifying customs procedures and harmonizing regulatory frameworks which can create a favorable environment for long-term trade and cooperation.
