Ethiopian Ambassador Announces 10-Year Tax Holiday for Pakistani Industrialists in Ethiopia

Karachi, Ethiopian Ambassador Jamal Bakar Abdullah announced that Pakistani industrialists investing in Ethiopia will receive a 10-year tax holiday. This incentive was revealed during his visit to the Korangi Association of Trade and Industry (KATI). Ambassador Abdullah highlighted the advantages of manufacturing and selling products both internationally and in the Ethiopian local market, bolstering trade ties between Pakistan and Ethiopia.

According to Korangi Association of Trade and Industry, the Ethiopian Parliament has already ratified a bilateral trade agreement with Pakistan last year. Ambassador Abdullah emphasized Ethiopia’s role as a gateway for Pakistani businesses to expand into the African continent. He noted Ethiopia’s access to 98% renewable and inexpensive energy, which could significantly reduce production costs and make Pakistani products competitive in a market serving 1.4 billion Africans.

The ambassador praised the ongoing efforts by KATI, stating that recent visits and initiatives have significantly advanced bilateral trade. KATI President Johar Kandhari supported this sentiment, pointing out the growing trade relationship facilitated by mutual visits and the welcoming of Pakistani trade delegations by Ethiopia. He urged the Pakistani government to foster further trade development between the two nations to capitalize on these opportunities.

This initiative aligns with Ethiopia’s strategic position as a founding member of the African Union and a signatory to the Africa Free Trade Agreement, aiming to enhance its influence and economic integration in Africa. The provision of cheap electricity and favorable security arrangements were also mentioned as key factors attracting investment.

KATI leaders, including Deputy Patron-in-Chief Zubair Chhaya and others, expressed optimism about leveraging Ethiopia as a production hub to access not only African but also European markets. They highlighted the critical role of government support in realizing these trade potentials and the benefits of direct flights facilitating business exchanges.

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