Cabinet Approves Historic Trade Deal With Rwanda

The federal cabinet has approved the signing of a Memorandum of Understanding (MoU) on trade with Rwanda for closer commercial cooperation under its Look Africa policy.

The non-binding agreement will establish an institutional framework to promote bilateral trade through the creation of a Pakistan-Rwanda Joint Working Group on Trade, regular official consultations, and greater engagement between businesses and trade bodies from both countries.

Pakistan first shared a draft Bilateral Trade Agreement (BTA) with Rwanda in July 2018. Following several rounds of consultations through diplomatic channels, inter-ministerial discussions, and a virtual meeting between officials, the two countries agreed to replace the proposed BTA with a broader and more flexible MoU on trade.

The cabinet’s approval clears the way for the signing of the finalized MoU, which provides for trade and business delegations, trade fairs and exhibitions, cooperation between chambers of commerce, the establishment of a Joint Business Council, promotion of joint ventures, the exchange of trade-related information, and collaboration to address non-tariff barriers.

Officials said the agreement does not create legally binding obligations or financial commitments for either government but is intended to provide a structured mechanism for expanding bilateral trade and strengthening commercial relations.

Pakistan launched its Look Africa Policy in 2017 to increase exports, attract investment, and strengthen economic engagement across the African continent. The initiative seeks to diversify Pakistan’s export markets beyond traditional destinations by expanding trade with African economies through diplomatic outreach, trade agreements, business-to-business engagement, and participation in regional trade exhibitions.

Rwanda has emerged as one of Africa’s fastest-growing economies and is widely regarded as a regional hub for trade, logistics, and investment in East Africa, making it a strategic partner for Pakistan’s efforts to expand its commercial footprint in the region.