CANADA and Pakistan established diplomatic ties in 1947, soon after Pakistan’s independence and have since developed a strong and cordial bilateral relationship.
The High Commission of Canada in Pakistan is supported by consulate trade offices in Lahore and Karachi.
Pakistan’s High Commission is in Ottawa, with consulates in Montreal, Vancouver and Toronto.
These diplomatic presences reflect the robust and multifaceted relationship between the two nations, which spans governance, democracy, people-to-people links, climate change, regional security, defence and human rights.
Both countries have a longstanding history of trade and investment, collaborative efforts in tackling transnational crime and increasing job opportunities.
Canada was one of the first countries to recognize Pakistan as a sovereign state and since then their relationship has been marked by cooperation and mutual respect.
Approximately 500,000 people of Pakistani origin reside in Canada, contributing significantly to the connection between the two nations.
Additionally, Pakistan’s Foreign Office reports the presence of two Pakistan-origin senators and six members of the House of Commons in Canada’s parliament, further strengthening bilateral ties by bridging the political gap.
Canada also has substantial stakes in Pakistan’s development, with the Reko Diq gold mine project awarded to Canadian firms, which marks the largest foreign direct investment in Pakistan.
Trade relations between Canada and Pakistan have strengthened over the years.
In 2018, Pakistan’s exports to Canada were valued at $461 million, led by house linens, knit sweaters, and apparel.
By 2023, exports grew by 5.56%, reaching $461 million from $352 million.
In 2020, Canada exported services worth $84.3 million to Pakistan, mainly in travel.
By December 2024, Canada’s top exports to Pakistan included scrap iron, newsprint, used clothing, dried legumes, and sawn wood.
In return, Canada imported house linens, non-knit women’s suits, leather apparel, and knit sweaters.
However, total bilateral trade dropped from $557 million in 2018 to $373 million in 2023, largely due to Pakistan’s economic challenges, such as dwindling foreign exchange reserves, inflation, and a depreciating currency, which affected its ability to finance imports.
Both countries continue to foster diplomatic and economic ties.
The fifth round of Pakistan-Canada Bilateral and Political consultations was held on April 26, 2024, in Ottawa, where both sides reviewed the broad spectrum of their relationship and discussed opportunities in trade, politics, education, counterterrorism and parliamentary exchange.
The Pakistani Ambassador to Canada invited Canadian businessmen to invest in Pakistan’s energy, mining and IT sectors.
These discussions highlighted the growing importance of bilateral cooperation, particularly in energy, mining, IT and people-to-people connections.
Political analysts in both countries foresee an opportunity for revitalizing the relationship under Canada’s new Prime Minister Mark Carney.
The focus should be on strengthening economic ties, including fostering sustainable energy solutions, expanding collaborations in the Reko Diq gold mines and advancing the IT sector.
By addressing trade barriers and focusing on mutual economic growth, both countries could unlock new opportunities for business collaboration and market access, taking their bilateral relations to new heights.
— The writer is a freelance columnist based in Islamabad. (rashidmehmoodndu@gmail.com.)
