Pakistan Reinforces Strategic Economic Ties with UAE, Pitches Multi-Billion Dollar Rail

Pakistan has reaffirmed its commitment to deepening bilateral relations and expanding economic cooperation with the United Arab Emirates (UAE) through a series of high-level diplomatic and economic engagements in Abu Dhabi.

Minister of State for Finance and Railways, Bilal Azhar Kayani, led the outreach, participating in the Global Rail Transport Infrastructure Exhibition and Conference, and separately calling upon UAE President Sheikh Mohamed bin Zayed Al Nahyan.

Rail Infrastructure Central to Pakistan’s Economic Vision

Addressing a ministerial panel on “Building Connected Nations” at the Etihad Rail-organized summit, Minister Kayani pitched Pakistan’s ambitious, multibillion-dollar upgrades to its key rail corridors—the Main Line-1 (ML-1) and Main Line-3 (ML-3)—as essential drivers of regional trade and connectivity.

The ML-1 project, stretching 1,872 kilometers from Karachi to Peshawar, is the nation’s busiest artery, while the ML-3 links Quetta to Kotri, serving as a vital corridor for minerals and regional commerce.

Minister Kayani emphasized the foundational role of modern infrastructure, stating: “It goes without saying that infrastructure and economic prosperity are intertwined. Robust connectivity can unlock growth, create jobs, and strengthen regional integration.” He added that the upgrades are designed to transform Pakistan’s railway into “an efficient, reliable, and environmentally sustainable backbone of national transport,” significantly expanding freight capacity and shortening travel times to align the network with international standards.

On the sidelines of the event, Minister Kayani met with Etihad Rail CEO Shadi Malak to explore potential cooperation in freight logistics, technology exchange, and network development, signaling a shared vision for modernizing regional transport systems.

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High-Level Diplomatic Engagement Reaffirms Brotherly Ties

The diplomatic visit culminated in Minister Kayani calling upon UAE President Sheikh Mohamed bin Zayed Al Nahyan at the Qasr Al Bahr palace. During the meeting, Minister Kayani conveyed warm greetings and best wishes from Prime Minister Shehbaz Sharif, and formally delivered an invitation for the UAE President to visit Pakistan.

The UAE President reciprocated the warm sentiments, and both sides utilized the opportunity to reaffirm their unwavering commitment to further strengthening the long-standing, brotherly relations between the two nations.

In a separate engagement underscoring the priority placed on economic collaboration, Deputy Prime Minister and Foreign Minister Ishaq Dar held a telephone conversation with UAE Minister of State Ahmed Ali Al Sayegh, with discussions centering on boosting trade, investment, and new opportunities in connectivity.

Economic Partnership Momentum

These high-level interactions build on the significant momentum generated by the 12th Pakistan-UAE Joint Ministerial Commission (JMC) held in June 2025. The JMC resulted in agreements across critical sectors, including banking, aviation, energy, defence, food security, climate change, IT, higher education, and manpower, alongside MoUs on visa exemptions, investments, and cooperation in artificial intelligence and the digital economy.

The UAE continues to be a crucial economic partner for Pakistan, standing as its third-largest trading partner, with bilateral trade exceeding $10.9 billion in FY 2023-24. Furthermore, remittances from over 1.5 million Pakistanis working in the UAE reached $6.7 billion last year, with projections to surpass $7 billion in 2025.

The latest engagements clearly signal a firm resolve by both nations to elevate their strategic and economic partnership, ensuring deeper cooperation and mutual prosperity in the years ahead.

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