Pak exporters may face hardships on Qatar situation

KARACHI: Pakistani textile and rice exporters may face hardships due to developing situation in the Gulf region and blockage against Qatar, industry sources said.

“Pakistan’s major exports to Qatar include textiles and rice,” said Zubair Tufail, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on Friday. He; however, said the trade volume between the two countries is not encouraging and is in favour of Qatar due to huge imports of liquefied natural gas (LNG) by Pakistan.

The total trade volume between Pakistan and Qatar is around $1 billion in 2017 after the implementation of LNG trade deal. The bilateral trade between the two countries was $300 million in 2015, in which Pakistan’s exports to Qatar was $124 million.

Tufail said that in case of worsening situation in Qatar, Pakistan would face difficulties in LNG imports. He; however, said that it would not be worrisome for Pakistan, as many other alternatives are available.

The population of Qatar is merely 2.2 million and most of the expatriates are engaged in construction and other activities. Shamim Ahmed Firpo, president of the Karachi Chamber of Commerce and Industry (KCCI) said that Pakistanis living in Qatar would face difficulties as they are being shifted to other countries.

In such a situation, Pakistan would face shortage of remittance inflows, he said, and advised that the Muslim community should resolve the conflict as soon as possible. The business community said the growing situation in the Gulf region would negatively impact the relations of Muslim countries.

Tufail said that Pakistan should immediately start formal trade with Iran, adding that strong economic relations would avoid political rift. Firpo said that Qatar’s situation would not have any negative impact between Pakistan-Iran relations.