- Jamal Siddiqui
- Oct 02, 2024
Oliver Oehms CEO of the German Emirati Joint Council for Industry & Commerce (AHK Gulf Region)
- Jamal Siddiqui
- Oct 01, 2024
“Pakistan’s potential is not just a possibility; it’s a promising reality for German businesses.”
New Alliances Required
In the aftermath of the worldwide pandemic two terrible wars are shaking up old and established certainties. International trade relations and supply chains have been partly heavily disrupted. Trade patterns from East Asia via the Middle East to ‘Western’ markets are still not there where they were left in 2020/2021. Will the old globalized world return?
Most likely not.
As an economy that it globally intertwined and connected like hardly any other, current times are challenging for sure. Germany is not only one of the world’s largest exporters, only outperformed by China, but also a massive importer. Trade disruptions and increasing economic nationalism pose threats to Germany’s economic model. All leading German business and industry associations, including the German Chamber of Commerce and Industry (DIHK, Berlin) have clearly been rejecting any call for turning back the wheel of globalization.
Just the opposite is required – with important markets ailing, including European neighbors and Germany itself suffering from record-high energy costs – the quest for new markets is a key necessity for the many German technology champions, especially small and medium-sized ones. With the global network of German Chambers Abroad (AHK – “Auslandshandelskammern”) Germany can rely on a “Secret Economic Weapon”, as the Wall Street Journal titled already in 2013. Being present in now 93 countries with some 150 offices the AHK network operates on a not-for-profit basis, with a “corporate DNA” and a German Government mandate.
In the ever-dynamic Middle East, North Africa & Pakistan region (MENAP) the German Chamber organization has been operating with first entities already in the late 1970s. The Chamber in the Gulf Region was established in 1998, now representing 700+ corporate members, most of the them with a regional representation. In March 2022, we officially launched the Pakistan Desk within our regional AHK. Operating out of Abu Dhabi and Dubai the Chamber currently reaches out to six countries across the region. With an increasing intensity we have been travelling across Pakistan, often accompanied by German business delegates.
Admittedly, many German businesses, particularly SMEs have not been looking into business opportunities in Pakistan until recently. Between the two Asian giants China and India Pakistan faced the destiny of many emerging markets in Asia – “too complex, lack of transparency, red tape, etc.”, these are the reactions that we are often confronted with. Indeed, the narrative on Pakistan is not a quick sell. Looking back onto the last 2.5 years of engagement in Pakistan we can state though that
- the often-cited (and equally often doubted) “potentials” do exist,
- the red tape is an issue indeed (but isn’t that why one should connect with Chambers and established law firms?), and
- Business relations do develop, as we know from the many German firms that took a second, third, etc. look into the market – and progress.
We believe that new partners and new partnerships are required for German businesses. Pakistan has not only the potential to be one of those new partners but is already on a promising trajectory – not only due to its market size but also due to its fantastic local talent and its manufacturing legacy. Who wants to join hands with us in spreading the word, in Germany and Pakistan alike?