Egypt Offers Pakistan US Market Access via Factories
Egypt has invited Pakistani companies to set up factories in the North African country and win Pakistan US market access through its preferential trade arrangements with Washington.
The offer was discussed during Federal Minister for Commerce Jam Kamal Khan’s bilateral meeting with Egypt’s Minister of Investment and Foreign Trade, Mohamed Farid Saleh, on the sidelines of the 42nd Session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) in Istanbul, Türkiye. ProPakistani reported the meeting on Thursday.
Egypt highlights US market access opportunities
During the meeting, both ministers discussed ways to expand bilateral trade, investment, and industrial cooperation, particularly in the cotton and textile sectors. Saleh highlighted Egypt’s investment opportunities and encouraged Pakistani businesses to explore manufacturing partnerships and industrial operations in the country.
He specifically pointed to Egypt’s preferential trade arrangements with the United States, which could allow Pakistani investors to establish manufacturing facilities in Egypt and access the American market, subject to applicable trade requirements. Saleh also requested details of the Pakistani companies expected to participate in the upcoming business forum to facilitate direct engagement between the two countries’ business communities and identify potential investment partnerships.
He also highlighted affordable educational opportunities for Pakistani students in science, technology, medicine, healthcare, and engineering. Jam Kamal emphasized the importance of developing joint ventures between Pakistani and Egyptian private sector companies, particularly in textiles, manufacturing, and other mutually beneficial industries. He said stronger business to business engagement and institutional cooperation could help both countries expand commercial ties and explore new international markets.
Pakistan seeks better trade ties with Saudi Arabia and Tunisia
Kamal also met Saudi Arabia’s Deputy Governor for International Organizations and Agreements, Fareed S. Alasaly, to discuss cooperation in agriculture, industrial development, human resource development, livestock, and food security. Both sides agreed to strengthen collaboration, while the commerce minister proposed partnerships between leading Pakistani and Saudi businesses to explore emerging trade opportunities in African markets.
In a separate meeting with Tunisia’s Minister of Trade and Export Development, Samir Abid, Jam Kamal discussed expanding bilateral trade and industrial cooperation. Both ministers acknowledged that trade between the two countries remains below its potential and called for coordinated efforts to strengthen commercial ties. Business Recorder also reported the meetings.
Pakistan US market access: why the Egypt route matters
The offer lands at a difficult moment for Pakistan’s exporters. Exports to Europe have dipped despite GSP+ status, which means Pakistani firms are already looking for new routes into Western markets. A factory in Egypt would let a Pakistani company make goods under Egypt’s preferential terms with the United States, rather than shipping finished goods from Pakistan and facing whatever duties apply to Pakistani-origin products.
Textiles are the obvious starting point. Pakistan’s textile sector is its largest export earner, and Egypt’s own textile industry already works inside the same preferential system. A joint venture would pair Pakistani know-how in cotton and garment making with Egypt’s market access, which is exactly the model Saleh proposed at the meeting.
The idea also fits a wider pattern in Pakistan’s economic diplomacy this year. Riyadh has rolled over $3 billion in loans to support Pakistan’s external financing, and China and Kuwait have agreed loan rollovers worth $4.3 billion. Investor sentiment at home has also been strong, with the KSE-100 gaining 3,450 points in a single session this week. Those deals steady the external account. The Egypt offer is different: it is about earning more, not borrowing more. If Pakistani firms take it up, the payoff would show in export receipts rather than in reserves.
There are limits to what the offer can deliver on its own. Access is subject to applicable trade requirements, which means rules of origin and local content conditions will decide how much of a product must actually be made in Egypt. The business forum Saleh asked about will be the first test of whether Pakistani companies are ready to invest abroad rather than simply export from home. For now, the offer is on the table, and the next step belongs to the private sector.
Frequently asked questions
What has Egypt offered Pakistan?
Egypt has invited Pakistani companies to set up manufacturing facilities in Egypt and use the country’s preferential trade arrangements with the United States to reach the American market.
Who discussed the offer?
Federal Minister for Commerce Jam Kamal Khan and Egypt’s Minister of Investment and Foreign Trade, Mohamed Farid Saleh, on the sidelines of the 42nd COMCEC session in Istanbul.
Which sectors are involved?
Cotton and textiles in particular, along with manufacturing more broadly, plus educational opportunities for Pakistani students in science, technology, medicine, healthcare and engineering.
Does the offer guarantee US market access?
No. Access would be subject to applicable trade requirements, including rules of origin and local content conditions.
