Beyond the bond of Islamic brotherhood, Pakistan has always maintained strong relations with Qatar. Recently, Prime Minister Shehbaz Sharif met with his Qatari counterpart, Sheikh Mohammed bin Abdulrahman Al Thani, in Doha. Both nations reaffirmed their commitment to strengthening economic ties. Additionally, Prime Minister Shehbaz Sharif invited Qatari investors to invest in Pakistan’s energy, infrastructure, and other sectors. The Qatari delegation showed interest in Pakistan’s economic landscape and discussed potential collaborative efforts aimed at job creation, innovation, and sustainable development.
During this visit, amidst current circumstances, discussions covered a wide range of mutual interests, including economic and investment cooperation, and ways to enhance bilateral trade and export of skilled Pakistani workers to Qatar. This is undoubtedly an important development for Pakistan’s economy.
Pakistan, facing a severe economic crisis, needs to maximize trade and economic ties with friendly countries. In addition to the bond of Islamic brotherhood, Pakistan has historically enjoyed strong relations with Qatar, including the import of LNG on deferred payments and shared stances on global issues. Pakistan should focus on strengthening its relationship with Qatar, especially in trade and economic sectors.
Following his visit to Saudi Arabia, Prime Minister’s trip to Qatar has led to progress in investments in energy and other sectors and has paved the way for participation in upcoming privatization efforts. This visit is expected to yield positive outcomes, including increased employment opportunities for Pakistani workers.
Due to reduced electricity consumption in Pakistan, LNG usage has also declined. Sui Northern has already requested a reduction in LNG imports, so this issue may be addressed during the visit. Stronger economic ties with Qatari investors across various sectors are anticipated. This promising progress requires further efforts on the domestic front.
Qatar has emerged as a more confident and powerful state, having sought new and alternative resources for food and medicine. During this period, Qatar entered into new economic agreements to modernize its economy and reduce its dependence on oil. In October, the IMF recognized Qatar as the fastest-growing economy in the Gulf region.
After Russia and Iran, Qatar holds the world’s third-largest gas reserves, despite its smaller population and area. The North Field spans approximately 6,000 square kilometers, nearly half of Qatar’s total area. Qatar Gas is the world’s largest producer of liquefied natural gas (LNG) and plays a significant role in the nation’s economic growth. In the 2024 Global Peace Index, Qatar was ranked as the second most peaceful country in the region and 29th globally.
The 2022 FIFA World Cup brought global attention to this small yet resource-rich state. It’s surprising to many that this Middle Eastern country, now home to about 3 million people, was largely uninhabited just a century ago, in 1922. At that time, Qatar was a settlement of fishermen and pearl divers, with a population mainly comprised of Bedouins from the Arabian Peninsula’s deserts. The discovery of oil reserves in the 20th century was transformative, turning Qatar into one of the world’s wealthiest nations and changing its economic trajectory.
Oil was first discovered in Qatar in 1939 near Dukhan, but the benefits were delayed until after World War II, with exports commencing in 1949. This attracted foreign workers and investors, boosting the population from under 25,000 in 1950 to over 100,000 by 1970. The 21st century witnessed rapid economic growth, with GDP growth peaking at 19.2% between 2003 and 2004.
In 1996, Qatar’s first significant gas export shipment was sent to Japan, marking the start of a multibillion-dollar industry that propelled the nation to global wealth. By 2021, Qatar’s per capita GDP was $61,276, with the World Bank reporting a purchasing power parity (PPP) of $93,521, the highest globally.
Qatar’s small native population, around 300,000 to 350,000 out of a total 3 million, means that the benefits of state wealth are shared by a small group, contributing to its high per capita GDP. Alongside high wages, the state provides strong education and healthcare systems.
However, experts suggest that Qatar’s economy is still highly dependent on oil and gas exports, prompting efforts to expand the private sector and diversify through global investments. The Qatar Investment Authority’s presence in major cities like London and New York is a testament to these efforts. The massive $200 billion investment in the 2022 FIFA World Cup reflects this economic ambition.
The Qatari government is actively encouraging foreign investment, but each project presents unique challenges and requirements. Creating a conducive investment environment and eliminating obstacles are critical. Pakistan and Qatar can be significant partners, helping each other and supporting the broader interests of the Islamic world, while achieving mutual economic benefits.