Dar es Salaam. Pakistan is seeking to deepen trade and investment ties with Tanzania through new trade agreements, joint ventures and investments in emerging sectors including information technology and artificial intelligence.
Pakistan’s High Commissioner to Tanzania Muhammad Azeem Khan said bilateral trade had increased to $369 million from $287 million in the previous year, describing the growth as a sign of the potential for stronger commercial relations between the two countries.
“We have a very cordial relationship with Tanzania, but there are still significant opportunities for businesses from both countries to expand trade and investment,” he said.
The envoy was speaking during celebrations marking Pakistan’s Independence Day, where he said Islamabad was exploring Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs) with Tanzania and other East African countries.
Some of the agreements, he said, were already in the pipeline.
Mr Khan said stronger trade arrangements would give Tanzanian businesses greater access to Pakistan’s large consumer market, while Pakistani companies could expand their operations in Tanzania through investments and partnerships with local firms.
Pakistan currently exports rice, pharmaceuticals, surgical equipment, sportswear and other sporting goods to Tanzania, while Tanzania exports raw cotton, cashew nuts, pulses and spices to Pakistan.
Mr Khan said there was scope to increase both the volume and value of Tanzania’s exports, particularly through greater value addition before products reach the Pakistani market.
Beyond traditional trade, he encouraged businesses from the two countries to establish joint ventures, particularly in technology.
“IT, you can say AI, these are the emerging areas. Pakistan is very good in the IT sector,” he said.
He said several Pakistani companies were interested in investing in Tanzania through joint ventures as the country’s technology sector expanded.
Tea was another area he identified as having potential for stronger cooperation.
Mr Khan said Tanzanian businesses could invest in local tea-processing facilities to add value before exporting the products to Pakistan, enabling them to benefit from demand in the Pakistani market.
“We would like to see more value addition in Tanzania. Such investments could create opportunities for businesses while increasing the value of Tanzania’s exports,” he said.
However, the envoy cautioned that the reported bilateral trade figure might not reflect the full volume of commerce between the two countries because some goods are traded through third countries, particularly Kenya and the United Arab Emirates.
He said increased participation in trade fairs and business exhibitions was helping companies from both countries establish contacts and identify investment opportunities.
According to Mr Khan, Tanzanian businesspeople had travelled to Pakistan to participate in exhibitions covering health, engineering, minerals, food and agriculture, as well as a single-country exhibition held in Ethiopia.
“Exhibitions and expos are also very important to attract both businessmen,” he said.
He said 18 Pakistani companies were expected to participate in MadExpo in September, describing the event as another platform for businesses from the two countries to establish partnerships and explore investment opportunities.
Mr Khan said increasing movement of businesspeople between Tanzania and Pakistan was contributing to closer commercial relations and could help drive further growth in bilateral trade.
He said the two countries had considerable scope to move beyond traditional exports and develop partnerships in technology, manufacturing and value addition that could generate greater economic benefits for both sides.
