The federal cabinet has approved the signing of a Memorandum of Understanding (MoU) on trade with Rwanda, marking another step in Pakistan’s efforts to expand commercial ties across Africa under its Look Africa Policy.

The agreement will establish a formal framework for strengthening bilateral trade through the creation of a Pakistan-Rwanda Joint Working Group on Trade, regular consultations between government officials, and closer engagement between businesses and trade organizations in both countries.

Pakistan initially proposed a Bilateral Trade Agreement (BTA) to Rwanda in 2018. After several rounds of diplomatic and inter-ministerial consultations, both sides agreed to replace the proposed treaty with a broader, non-binding trade MoU designed to facilitate economic cooperation.

The approved framework covers the exchange of trade and business delegations, participation in trade fairs and exhibitions, collaboration between chambers of commerce, the establishment of a Joint Business Council, promotion of joint ventures, sharing of trade-related information, and cooperation to reduce non-tariff barriers.

The MoU does not impose legal or financial obligations on either country but provides an institutional mechanism to promote trade and encourage greater private-sector collaboration.

Pakistan launched its Look Africa Policy in 2017 to diversify export markets, attract investment, and strengthen economic engagement with African nations through trade agreements, diplomatic outreach, business partnerships, and participation in regional trade events.

Rwanda, one of Africa’s fastest-growing economies, is considered an important commercial and logistics hub in East Africa, making it a strategic partner for Pakistan’s efforts to expand trade and investment across the continent.