Pakistan Qatar Relations at New Height

Dr.Syed Mehboob

http//:www.thenewslark.com

Pakistan and Qatar , both are brotherly Islamic countries , have deep rooted, time tested strong relations and cemented ties based on mutual respect, cooperation and understanding.

Prime Minister of Pakistan Mian Shehbaz Sharif visited Qatar on 23^rd August,2022 to further enhance bilateral friendly ties. It was his first visit to Qatar since he assumed PM office since April, 2022. This two days visit paved the way to take bilateral relations toward a new height. Prime Minister Shehbaz Sharif invited investors from Qatar to invest in Pakistan’s energy, aviation, agriculture, tourism and hospitality services. Prime Minister held a high level meeting with the highest officials of  “ Qatar Investment Authority (QIA) “ , one of the largest sovereign wealth investment funds in the world. Prime Minister highlighted enormous opportunities being offered by Pakistan and asked Qatari investors to take advantage of Pakistan’s investment friendly policies. Qatar is interested in making investments in various sectors than offering cash to immediately bail out Islamabad. This would be more viable way to economically strengthening Pakistan. Prime Minister’s visit highlights the importance of Qatar and Pakistan strong relations and this visit paved the way for further cementing these brotherly relations. After the $3 billion investment commitment by Qatar, there is no funding gap for Pakistan. There is a need to turn these brotherly relations into strategic economic partnership and Qatari investment would play very important role in this regard.

Qatar Investment Authority Chief Executive officer Mansoor Bin Ebrahim Al Mahmood and Chief Investment Officer  of Africa and Asian Pacific Regions, Sheikh Faisal Thani showed keen interest in investing in Pakistan.  Prime Minister pointed out that there is enormous opportunities in investing in renewable energy including solar and wind power, aviation, maritime, industrial and infrastructural development, and hospitality sectors. Prime Minister assured full cooperation of government of Pakistan in this regard.

The king of Saudi Arabia on Thursday also directed to make a $1 billion investment in Pakistan after a similar announcement was made by the UAE a few days ago.The materialization of these investments worth $5 billion from the three countries would boost the economy of Pakistan.Qatar, through its $425 billion sovereign wealth fund, has shown its interest to make $3 billion investment in airports, power plants, port terminals, solar energy and the stock market.Qatar also showed its interest in investing in LNG-fired Haveli Bahadur Shah and Baloki power plants.Qatar offered to invest in the Islamabad International Airport and the Jinnah International Airport, Karachi. PM Shehbaz Sharif also participated in “Pakistan-Qatar Trade Investment Roundtable 2022” where he interacted leading Qatari businessmen and investors. The Qatar Financial Center (QFC), The Pakistan Business Council (PBC), and the Embassy of Pakistan in Doha organized this extra ordinary event. H.E. Ali bin Ahmed Al Kuwari, Finance Minister of Qatar; H.E. Sultan Bin Rashid, Undersecretary Ministry of Commerce and Industry of Qatar; and Yousaf Al Khater Jaida, CEO, Qatar Financial Canter also participated in the event.A large number of leading Qatari business and corporate executives as well as Qatar-based Pakistani business community in Doha also attended.

In his address, the Prime Minister highlighted the special nature of Pakistan-Qatar relations based on mutual respect, trust and support. He described Qatar as a reliable partner whose support was sincerely appreciated.The Prime Minister highlighted his Government’s firm commitment to providing a friendly environment for business and investments in the country. The Prime Minister stressed that Pakistan was blessed with immense natural and human resources and that Pakistan’s geographical location enabled it to become the region’s premier trade, energy and transport corridor. This unique advantage made Pakistan a market full of promise and opportunities. The Prime Minister underscored that, having a large consumer market with an ever-expanding middle class, Pakistan offered attractive business opportunities for investors in the fields of food security, energy including renewables, agriculture and livestock, information technology, hospitality and tourism sectors.

Another important development is that Pak Army would assist Qatar on FIFA World Cup security.This is a matter of high pride for whole Pakistan and reflects the outstanding quality of Pakistan Army which is one of the best Army in the world and the world admires and has trust in its abilities.

Qatar is a country located is Western Asia, occupying the small Qatar peninsula on the northern coast of the Arabian Peninsula. Its sole land border is with neighbouring Saudi Arabia to the south, with the rest of its territory is surrounded the Persian Gulf. Islam is the official religion of Qatar. The country has the highest per capita in the world. It is classified by the UN as a country of high human development and is widely regarded as the most advanced human development country. Qatar is one of the world’s largest natural gas and oil reserves.

In the 21^st century, Qatar emerged as a significant power in the Arab world both through its natural resources and its global expanding media group. Qatar is identified as middle power, large moderate influence and international recognition. According to Qatar constitution, sharia law is the main source of legislation. Qatar is an early member of OPEC and a founding member of the Gulf Cooperation Council (GCC) . It is also a member of Arab League and OIC. Qatar enjoys good relations with both the world powers China and United States of America.

Qatar is one of the fastest growing countries in the field of tourism. According to the World Tourism Rankings, more than 2.3 million international tourists visited Qatar in 2017. Qatar has become the most open countries in the Middle East due to its recent visa facilitation improvements, including allowing nationals of eighty eight (88) countries to enter visa free and free of charges.

Qatar has 4^th largest GDP of the world, according to the International Monetary Fund. It relies heavily on foreign labours to grow its economy. Migrant workers comprise 86% of the population and 94% of work force. The economic growth is based on its petroleum and natural gas industries. It is the largest Liquefied Natural Gas (NLG) exporter of the world. In 2012 it planned to invest US$ 120 billion in the energy sector for the next ten years. In 2012 it retained its title as the richest country in the world in terms of per capita income. It is still the 2^nd richest country in term of per capita income. Qatar has 15 billion barrels of gas fields that accounts for more than 13% of the global reserves. It is interesting to note that none of its 2 million people live below the poverty line.

Petroleum and natural gas is the cornerstone of its economy and accounts for more than 70% of the government revenue, 60 % of the GDP and about 80% export earnings. Ras Laffan Industrial City and Mesajeed Industrial Area are key centers of energy. Qatar is a producer of Petrochemicals, fertilizers steel is a regional power house.

Islamic Finance and banking has a great demand in Qatar and is expanding significantly. It is preparing to host world cup football tournament in 2022.

Qatar is utilizing its hi tech logistics capability and world class facilities such as Hammad Port and Hammad International Airport to bolster trade. The new Hammad port accounts 27 % of the regional trade volume in the middle east with an annual capacity of 7.5 million cargo containers. Hammad Airport is the biggest airport is the region which links Qatar to more than 150 destinations. QATAR AIRWAYS is one of the best airways of the world.

Economy

Population:                                                2.79 million

Literacy rate:                                             98%

GDP (PPP) :                                     US$ 315.299 billion (2021)

GDP (official exchange rate) :         US$ 236.257 billion

GDP real growth rate             :        1.6%

GDP per capita   (ppp)          :        $112,789 2nd highest in the world.

Agriculture products              : fruits, vegetables, poultry etc.

Industries                                : NLG, crude oil production and refinery,

                                                  Fertilizer, petrochemicals

Budget       revenue                          : US$ 44.10 billion

                   Expenditure                  : US$ 53.82 billion

Exports                                             : 86.51 billion (2021)

Export partners                               : Japan 19.5 % , South Korea 16%, India

                                                             12.5 % , China 11.7%, Singapore 8.2% ,

                                                         UAE 6.4%

Export Commodities                       : LNG, Petroleum products, fertilizers

Imports                                             : US$ 26.69 billion

Import partners                               : China 10.9%, US 8.9 %, UAE 8.5 %

                                                                Germany 8.17 %, UK 5.5%, India 5.4%   

                                                             , Japan 5.3%, Italy 4.5 %

Crude oil production                       : 1.50 million barrels per day

Crude oil exports                                       : 1.15 million barrels

Crude oil proven reserves                : 25.24 billion barrels

Natural gas production                             : 166.4 bn cu meters 

Natural gas proven reserves            : 24.07 trillion cu meters

Prime Minister of Qatar Sheikh Abdullah bin Naseer bin Khalifa Al thani showed his interest to sought Pakistan Army’s help to support the security  during world cup 2022.

Trade with Pakistan

Qatar is keen to enhance bilateral trade with Pakistan which has seen a 104% increase in one year and totaled %1.6 billion in 2017. His Excellency Minister of Economy and Commerce Sheikh Ahmed bin Jasim Althani said this addressing to Pakistan Qatar Business Forum. 

Nearly 50 % of Qatari imports from Pakistan are food and consumer products which account 1.1 % of total Qatari imports in the same categories.

The number of Qatari Pakistani joint companies working in Qatar totals 851. Six other companies fully owned by Pakistanis are also operating in the banking, hotel, contracting and engineering fields.

Trade Statistics between Pakistan and Qatar

US$ million

Major Items of Imports from Pakistan

Millions of US$

Major item of Export from Pakistan

US$ million