Our bilateral trade has been steadily increasing in the recent years and crossed the US$ 1 billion mark in 2022. In 2023, there was a dip in the trade volume, which was recorded at US$ 627.17 million (with trade surplus of US$ 295.97 million in favor of Pakistan). On March 20, 2022 the Government of Pakistan awarded development contract of the Reko Diq project to the Canadian company Barrick Gold. In 2011, the initial agreement was suspended due to a dispute over the legality of its licensing process.  Following the reconstitution of the project, Barrick will own 50 percent share, while the federal government and the Baluchistan government will own 25 percent share each. The agreement stipulates that Barrick Gold will invest CAD10 billion in the project.

Before commencement of formal work on the Reko Diq project in January 2023, the Canadian side sought certain guarantees and enactment of a legal framework, which were approved by the parliament. Accordingly, the project’s feasibility expansion studies would be completed at the earliest to ensure the landmark first production in 2028. The project, during the construction phase, is expected to provide employment to 7,500 people; once in full production, it would create around 4,000 long-term jobs for Pakistani nationals.

Bilateral trade between Pakistan and Canada has continued to grow over the years. It crossed the US$ 1 billion mark in 2022, with the balance in favor of Pakistan. In 2023, the overall volume of trade was recorded at US$ 627.17 million out of which, Pakistan’s exports were US$ 461.57 million and imports were US$ 165.59 million.

Pakistan-Canada Bilateral Trade

(Amount in million USD)

Source: Statistics Canada

Pakistan’s exports include textiles, leather products, cotton yarn and cereals and imports mainly consist of oil seeds, oleaginous fruits, industrial and medicinal plants, straw and fodder, edible vegetables, roots and tubers, iron and steel. Many Canadian companies, including Hatch, Enerflex, Constellation Software, Nortel, Solinst, Enerflex and Bombardier, have a strong presence in Pakistan. Canadian food giant Restaurant Brands International (RBI), once of the largest food chains in North America, opened a branch of its flagship coffee chain Tim Hortons in Lahore in February 2023. Second Cup is another popular Canadian coffee retailer that has its outlets in Karachi, Lahore and Islamabad.

General Preferential Tariff (GPT) Plus: Canada is currently considering a proposal for the creation of a new General Preferential Tariff (GPT) Plus scheme to expand the product coverage of the existing GPT scheme. Under the new scheme, developing countries that meet and progressively improve their adherence to international labor rights and environmental standards would be eligible for additional tariff benefits beyond what is provided through the current GPT scheme. Our response, prepared in consultation with the Ministry of Commerce, was shared with the Canadian side in 2022. The High Commissioner also met the Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng in November 2022 to brief her on Pakistan’s proposals. The Canadian side is carrying out its internal review and expected to announce the scheme in 2024.

Remittances: Home remittance from Canada have been robust, which were recorded at US$ 313.4 in FY 2019-20; US$ 594.8 million in FY 2020-21; US$ US$708.3 million in FY 2021-22; and US$ US$552.1 million in FY 2022-23.