The UAE is Pakistan’s largest trading partner. Trade between the two countries can expand further if there is improvement in the business climate, the trade regime, and public sector enterprises to increase foreign and domestic private investment and boost economic growth, said Ashraf Wathra, Governor of State Bank of Pakistan at the conference held in Dubai by IMF and Pakistan Minister of Finance.

The bilateral trade between UAE and Pakistan stood at $9 billion (Dh33.03 billion) in 2014 and there is a vast potential to boost trade and business relations between the two countries.

Pakistan’s exports to UAE reached $1.75 billion in 2014, representing seven percent of Pakistan’s total exports. Textile and food top the list of exports commodities and Pakistan imports from UAE stood at $7.3 billion with oil and gold topping the list of products.

Most Pakistani business activities in the UAE are large corporate or small and medium enterprises (SMEs). While most of the UAE investments in Pakistan are businesses involved in oil and gas, mining, petroleum refining, investments in the banking sectors top the list, Wathra said.

The UAE is one of the largest investors in Pakistan with a focus in banking. Four UAE banks are operating in Pakistan such as Bank Al Falah, in which

UAE firms hold 42 percent shares, Burj Bank (10 percent), lslami Bank (25 percent) and Dubai Islamic (90 percent). Performance of the banking sector remained robust as earning surge, asset quality improved and solvency strengthened.