Pakistan – Algeria. </br> <H1> For a win-win partnership.</H1>

530 Vues

Relations between Pakistan and Algeria are fraternal and are getting stronger day by day in all areas.

By : Youcef MAALLEMI (source: Pakistan Embassy in Algiers).

Already between 2020-2021, bilateral trade amounted to 150 million US dollars. After the trade agreement ratified by the President of the Republic Abdekmadjid Tebboune between two countries in August 2020, this agreement will help to develop trade as a whole. On the side of Pakistan, Pakistani companies are exploring to invest in Algeria in the field of agricultural, pharmaceutical and textile construction. As a reminder, the volume of bilateral trade in 2019-2020 between Pakistan and Algeria amounted to 150 million US dollars. In 2020-2021, the bilateral trade volume was US$25 million. Both countries are working to improve trade. The main products that Pakistan exports to Algeria are textiles, bed linen, towels, sports and surgical goods, while imports from Algeria consist of petroleum and petroleum products.

Relations between Algeria and Pakistan in figures.

 

Description / Year /USD million	2016	2017	2018	2019	2020	2021	2022
PAK EXPORTS	22.8	20.326	16.9	12.963	14.068	17.900	11.809
PAK IMPORTS	0.2155	0.4838	26.083	30.20	133.385	5.107	78.152
TRADE	23.02	20.81	42.983	43.31	147.453	23.00	89.961
TBALANCE	22.584	19.842	(9.93)	(17.09)	(119.32)	12,793	(66,343)

 

2. Trade products Between Pakistan & Algeria :

u  Algeria imports from Pakistan: garments, textile, rice, sports goods, autoparts ,medical appliances…etc.

u  Algeria exports to Pakistan: LPG/LNG, grand nuts, rare gases, gas containers ,aluminum, water tanks…etc.

u  Potential investment sectors in Algeria: Food processing, surgical, construction, IT, textile…etc.  and also Islamic banking.

u  Potential Investment sectors in Pakistan : Construction, Food processing, Textiles, Tourisme,…etc

3. Potential Products:

Note: the criteria set for selecting the potential product is USD 10 million which means:

- Products worth USD 10 m or above being imported by Algeria from world

- Products worth USD 10 m or above exported by Pakistan to the world.

Product Code	Product Label	Pakistan’s exports to Algeria		Algeria’s imports from world	Pakistan’s exports to world
		Value in 2021, USD Thousand	Equivalent ad valorem tariff faced by PAK	Value in 2021, USD Thousand	Value in 2021, USD Thousand
‘100630	Semi-milled or wholly milled rice, whether or not polished or glazed	1,968	5	51,506	1,786,251
‘901890	Instruments and appliances used in medical, surgical or veterinary sciences, N.E.S	1,140	4	57,736	405,512
‘620342	Men's or boys' trousers , bib and brace overalls, breeches and shorts, of cotton (excluding ...	871	30	46.448	400,495
‘630260	Toilet linen and kitchen linen, of terry toweling or similar terry fabrics of cotton (excluding ...	816	30	16,976	787.444
‘761510	Table, kitchen or other household articles and parts thereof, and pot scourers and scouring…	317	30	35,306	21.854
TOTAL	All products	14,324		40,430,236	23,818,817

. Legal and Trade requirements / CHALLENGES :

-          Economic

-          97% is based on hydrocarbon sector.

-          Business ranking of Algeria in 2020 is 157^th with a score of 48.6

-          Tariffs are higher( 0 to  60%)

-          Cut on expenditure up to 50%.

-          The Algerian government is facing a fiscal adjustment issues due to continuous fall of oil prices since 2013. The government decided to:

-          Cut on expenditure up to 50%.

-          Reduce import bill up to 10 billion $USD from 2019 (USD 40 billion)

-          New orders are not being placed due to available inventories.

-          Now, due to rise in oil prices since 2021, exports are rising and in 2022, trade surplus of around 1. Billion is expected.

-          General

-          Visa issues.

-          Bilateral high-level visits are rare.

-          Media does not portray image of Pakistan positively (French media).

-          People do not know much about Pakistan and Algeria and vice versa.

 

6. Following companies visited Algeria for business purposes in 2022:

1.    SAMDEN & CO / COSMETICS AND FOOD COLOURING

2.    M/S skill sports visited Algeria during FIA Exhibition,

3.    M/s Darsons Ltd visited Algeria to participate at Equipauto Algeria Exhibition

4.     FALCON SPAIN visited Algeria to present their samples of medical and surgery instruments to Algerian importers

5.    Under the platform of TDAP’s “LOOK AFRICA” policy, UNICORN PVT LTD and SAB APPAREL, two Pakistani companies who are both in the Textile field. The two companies visited Algeria to exhibit in TEXSTYLE  EXPO

6.    Recently, FATIMA GROUP arrived to Algeria to introduce their fertilizers to the Algeria market, during their visit, their meeting with Mr Kamal Razzig, the minister of commerce and export promotion of Algeria was arranged,

7.    TDAP is participating in upcoming FIA exhibition of Algeria (june 14-19 2023).

8.    A delegation of Algerian businessmen is expected to participate in the upcoming EHCS  (February 23^rd -25^th 2023) at Lahore.

9.    Following two exhibitions to be arranged by the TDAP in May 2023, the Algerian businessmen are being approached for registration and participation.

                                      i.        FoodAG ( MAY 4^TH – 6^TH 2023)

                                     ii.        TEXPO ( MAY 26^TH TO 28^TH 2023

10. A 10 member delegation of Pakistani Parliamentarians ( 03  Senate Secretariat and 07 National Assembly Secretariat  )  is visiting Algeria to participate in the 17^th session of the Union of Parliamentarians of OIC  member countries (29^TH and 30^th of January 2023). The theme of the session is “ Challenges of Modernization”.