Both Pakistan and Oman have steadily expanded their trade and economic cooperation, yet the full potential of their commercial engagements remains underutilized.
Bilateral trade between Oman and Pakistan reached $897 million in FY 2024, showing a modest increase from previous years. Pakistan’s exports to Oman were valued at $203 million, while imports from Oman stood at $694 million. Oman remains an important trading partner for Pakistan in the Gulf Cooperation Council (GCC), but the trade balance remains heavily in favor of Oman due to its energy exports. The trade gap presents an opportunity for Pakistan to enhance its exports in high-demand sectors.
Oman occupies a crucial position at the crossroads of Asia, Africa, and Europe. With a current account surplus of 2.3 percent of the gross domestic product (GDP) and inflation down to 1.3 percent in the year 2024, its economic stability makes it an attractive trade and investment destination. The country is advancing structural reforms, including privatization, fiscal consolidation, and renewable energy investments under Vision 2040. These measures provide Pakistan with an opportunity to expand its exports beyond traditional sectors and establish a stronger presence in Oman’s evolving market.
Pakistan holds a massive export potential when it comes to Oman, particularly in rice, apparel, processed foods, pharmaceuticals, and home textiles. The demand for high-quality Pakistani rice, including Basmati varieties, presents a strong case for increased exports. Establishing joint milling and packaging facilities in Oman would not only enhance supply chain efficiency but also provide employment opportunities and generate greater economic value.
Similarly, Pakistan’s poultry industry can cater to Oman’s growing food demand, making way for long-term trade contracts and potential joint poultry farming ventures. Moreover, Oman’s top exports include crude, natural gas, urea, and aluminum, while its top imports are telecommunication devices, smartphones, gold, rice, and industrial equipment.
Pakistan’s manufacturing and information technology (IT) sectors can capitalize on these demands by offering high-quality engineering goods, software solutions and digital services. This would not only diversify Pakistan’s export base but also aligns with Oman’s vision of technological advancement with economic diversification.
Investment remains a critical driver for strengthening economic ties. Omani investors can be wooed to explore Pakistan’s Special Economic Zones, which provide tax incentives, advanced infrastructure, and strategic regional connectivity. Sectors like steel, construction, energy and logistics hold vast potential for joint ventures. Furthermore, Oman’s expertise in liquefied natural gas (LNG) infrastructure can support Pakistan’s energy transition as the country seeks to enhance its LNG import capacity. Moreover, a long-term energy partnership with Oman could ensure stable supply chains.
To unlock the full potential of this relationship, both states must prioritize business matchmaking, trade missions, and digital trade facilitation. A dedicated trade facilitation platform can offer businesses real-time market insights, regulatory guidance, and investment matchmaking, making cross-border transactions more efficient.
With targeted policy actions and proactive engagement, Pakistan and Oman can transform their economic relationship into a dynamic, mutually beneficial partnership that extends beyond traditional trade.
