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Economic Cooperation Agreement between the Czech Republic and Pakistan

On July 26, 2023, in Prague, an Agreement on Economic Cooperation was formally signed between the Czech Republic and the Islamic Republic of Pakistan. For the Czech side, the agreement was signed by the Minister of Industry and Trade for the Czech Republic, Mr. Jozef Síkela, and for Pakistan side the Ambassador Mr. Muhammad Khalid Jamali.

Historically, the Czech Republic has maintained a consistent trade relationship with Pakistan. The latest agreement reiterates the commitment of both nations to foster and strengthen trade and investment ties. In 2022, bilateral trade between the two nations reached a total of USD 370 million, indicative of their longstanding economic relationship.

"Pakistan is one of the traditional markets for Czech exports. In the past, Czech companies have participated in the construction of power plants, oil refineries, engineering and food processing plants in Pakistan. Pakistan buys textile and leather machinery, machine tools and transport equipment," said Minister Síkela, adding: "However, the opportunities for economic and trade cooperation are not being fully exploited, which is why we have concluded a bilateral agreement that will establish a new joint commission to promote the development of mutual trade."

A central element of this agreement is the establishment of the Joint Commission, an institutional mechanism designed to promote trade and investment synergies between the two nations. It is expected that this commission will play a significant role in enhancing economic cooperation in various sectors, namely defence, energy, mining, information technology, tourism, and climate change. The structure of the commission's meetings has been set, with venues alternating between the Czech Republic and Pakistan, based on mutually agreed upon schedules.

In light of the broader economic landscape, the Czech Republic's recent ten-year export strategy reveals an inclination to diversify its economic relations beyond its traditional EU partnerships. This agreement with Pakistan is a testament to such strategic endeavors, aiming to provide the Czech Republic with a more robust global economic presence and access to diverse market opportunities.