Trade and Economic Relations

Zimbabwe and Pakistan enjoy long-standing, friendly diplomatic relations dating back to Zimbabwe’s independence in 1980. This political goodwill has historically served as a foundation for their economic engagement. While the trade volume between the two countries is modest and has not reached its full potential, it has shown resilience and growth in specific sectors. Both nations are part of the Developing Eight (D-8) organization, which provides a platform for enhanced economic cooperation.

1. Historical Context and Diplomatic Framework

The relationship is characterized by mutual support and shared views on many international issues. High-level visits have taken place over the years to strengthen ties. A key foundational agreement is the Pakistan-Zimbabwe Preferential Trade Agreement (PTA), which was signed in 2005. This agreement aims to boost trade by reducing or eliminating tariffs on a wide range of goods.

2. Current Trade Relations and Key Data

Trade between Zimbabwe and Pakistan is imbalanced, with Pakistan consistently maintaining a significant trade surplus.

• Major Pakistani Exports to Zimbabwe:

  • Pharmaceuticals: A dominant sector. Pakistani-made medicines are well-known and widely used in Zimbabwe due to their affordability and quality.

  • Textiles & Apparel: Rice, fabrics, garments, and other textile products.

  • Plastic Products: Various plastic goods and materials.

  • Sports Goods: Including footballs and other equipment.

  • Surgical Instruments: High-quality medical tools.

  • Chemical Products: Including pesticides and fertilizers.

• Major Zimbabwean Exports to Pakistan:

  • Tobacco: This is the single most significant export from Zimbabwe to Pakistan. Zimbabwean tobacco is highly valued for its quality.

  • Raw Minerals: Includes items like chrome ore, lithium, and other base metals.

  • Agricultural Products: Limited quantities of tea and cotton.

Trade Volume: While figures fluctuate annually, the total bilateral trade has historically hovered in the range of $50-80 million, with Pakistan’s exports accounting for the vast majority. There is a recognized potential to increase this figure substantially.

3. Key Areas of Economic Cooperation

Beyond simple trade, the relationship encompasses several areas of cooperation:

• Investment: Pakistani companies have a notable presence in Zimbabwe, particularly in the pharmaceutical sector (e.g., PharmEvo, Getz Pharma). There have also been interests and discussions in sectors like banking, textiles, and agriculture.

• Agriculture & Mining: Pakistan has shown interest in Zimbabwe’s agricultural expertise (especially tobacco farming) and its vast mineral resources. Joint ventures in mining and mineral processing are a potential growth area.

• Defense Cooperation: There is a history of defense collaboration, including the training of Zimbabwean military personnel in Pakistan.

• Technical Assistance & Scholarships: Pakistan offers scholarships to Zimbabwean students in fields like medicine and engineering, fostering long-term people-to-people ties.

5. Future Prospects and Opportunities

The future of Zimbabwe-Pakistan economic relations holds promise, particularly if the following areas are explored:

1. Enhanced Bilateral Engagement: Regular trade delegations, solo exhibitions, and participation in each other’s trade fairs can bridge the information gap.

2. Focus on Value Addition: Instead of just exporting raw tobacco and minerals, Zimbabwe can attract Pakistani investment in processing plants (e.g., cigarette manufacturing, mineral beneficiation).

3. Boosting Pakistani Investment in Zimbabwe: Sectors like agriculture (with Zimbabwe’s abundant arable land), mining (lithium, gold, chrome), and tourism present significant opportunities.

4. Cooperation in Energy & ICT: Pakistani expertise in IT services and solar energy could be valuable for Zimbabwe’s development needs.

5. Strengthening Banking Links: Establishing direct correspondent banking relationships would facilitate easier trade finance.