In a significant diplomatic engagement, the prime ministers of Malaysia and Pakistan convened in Islamabad to fortify economic relations between their nations. Anwar Ibrahim and Shehbaz Sharif, who both assumed office in 2022, focused on expanding bilateral trade and fostering cooperation across various sectors.
The discussions, which took place on October 3, 2024, centered on enhancing collaboration in energy, agriculture, connectivity, and tourism. This meeting marks a crucial step in strengthening ties between the two Commonwealth nations, which have maintained diplomatic relations since 1957.
Currently, the bilateral trade between Malaysia and Pakistan stands at $1.5 billion for the fiscal year 2023-2024. Both leaders expressed their commitment to increasing this figure by addressing trade imbalances and removing barriers in key sectors. Malaysia, boasting the third-largest economy in Southeast Asia, and Pakistan, with the world's 23rd largest economy by nominal GDP, see significant potential for growth in their economic partnership.
The talks come at a critical time for Pakistan, which recently secured a $7 billion loan from the International Monetary Fund (IMF). This financial assistance is part of a long-standing relationship between Pakistan and the IMF, dating back to 1958. The country, home to approximately 240 million people, has been grappling with economic challenges and seeks to diversify its trade partnerships.
While economic cooperation took center stage, the meeting occurred against the backdrop of Pakistan's complex political landscape. The nation has been experiencing political turmoil, particularly surrounding the imprisonment of former Prime Minister Imran Khan. Khan, who served from 2018 to 2022, has been in custody since 2023 and faces over 150 legal cases.
"The two sides agreed to strengthen bilateral economic cooperation, enhance trade, remove barriers in key sectors, provide a level playing field, and address the trade imbalance"
As Malaysia and Pakistan work towards closer economic ties, they build upon a shared history as members of the Organisation of Islamic Cooperation. The collaboration between these two Muslim-majority nations could potentially lead to increased trade in key exports such as electronics and palm oil from Malaysia, and textiles and rice from Pakistan.
The meeting in Islamabad, which became Pakistan's capital in 1967, symbolizes the ongoing efforts of both countries to navigate global economic challenges while fostering mutual growth and development. As the world watches, the outcomes of this high-level engagement may shape the economic trajectories of both nations in the years to come.