Pakistan is among the countries that have no formal diplomatic relations with Israel because of the lingering issue of Palestinian statehood. A recent visit of Pakistani ex-pats to Israel has also created great controversy in the country as the political and religious parties term such an act against the ideology of Pakistan. Ex-Prime Minister of Pakistan, Imran Khan also stated last year that he will not recognize Israel until there is a Palestinian state acceptable to the Palestinians. He further stated that the US was pressurizing the Muslim world to recognize Israel considering Pakistan’s betterment.
As the Islamic Republic of Pakistan does not recognize the state of Israel, the question of formal trade relations with the country does not arise, direct or indirect. This is a major obstacle that the government of Pakistan has to overcome. We cannot rationally speak, reclaim and restore the Palestinian territory on which Israel hasbuilt huge Jewish colonies. We have taken a political stance in support of their cause, and that is a cost wemust bear. Only a handful of Muslim countries, particularly Pakistan, have made the liberation of occupied Palestinian land an official aspect of their foreign policy.
Last year, the UAE agreed to normalize relations with Israel in the U.S and brokered a deal in 2020, the first of the so-called Abraham Accords that Israel eventually concluded with four Arab nations. UAE made history by being the first Arab country to have signed a free trade agreement with Israel on 31st May 2022. Since then, the two countries have boosted cooperation in a number of economic sectors for their mutual benefit. In recognition, Israeli Prime Minister Naftali Bennett tweeted, “This was the fastest FTA to be signed in Israel’s history. Equally, Mohamed Al Khaja, the UAE ambassador to Israel, called it “an unprecedented achievement.”
Aside from UAE, Sudan, Morocco, and Bahrain have also established diplomatic ties with Israel in 2020, motivated by common interests. With a stated target of increasing annual bilateral trade to more than $10 billion over the next five years, the trade agreement is the largest ever between Israel and any Arab country. It covers 96% of the trade between the two Middle Eastern countries, which last year reached $885 million, according to Israel’s economy minister. A year and a half since the deal that normalized diplomatic ties between Israel and the U.A.E., business is growing, with trade between the two counties forecast to reach $2 billion this year.
In another recent development, US President Biden is expected to travel to Israel in June after consultations in Europe. The United States is supporting dialogue and advocating direct talks between Saudi Arabia and Israel. This meeting between the two governments could lead to the restoration of diplomatic ties and peace in the region and encourage other moderate Islamic nations to follow.
Another fact that needs to be taken into consideration is that the two countries i.e., UAE and Israel, are two major tech hubs in the Middle East region. Each nation’s tech sector has its own niche. Israel is highly specialized in deep-tech such as blockchain, and cybersecurity whereas the UAE has become a tech leader among Arab nations through its comparative advantage in digital transformation and smart cities, as well as its ability for wide-scale deployment. In this sense, the UAE-Israel tech alliance is complimentary and allows the two countries to benefit from each other’s expertise and dominance in the sector.
Recently, a major UAE sovereign-wealth fund has invested roughly $100 million in venture-capital firms in Israel’s technology sector. Israeli companies are investing in new offices in Dubai and Abu Dhabi and moving staff from Tel Aviv.
In 2020, Israel also took part in Expo 2020 Dubai, a year after the UAE and the Jewish state normalized ties. This was the first time Israel participated in an event of such a large scale and importance. As a sign of changing dynamics in the region, Bahrain and Morroco followed UAE and established diplomatic ties with the state. It is pertinent to mention that Turkey has already signed Free Trade Agreement with Israel for the past 25 years and is benefiting through foreign trade and technology.
In light of the above, it makes complete sense for Pakistan’s national interest to tap into its potential IT sector as well and establish trade relations with Israel. The way many pragmatic Pakistanis see it, with the Arabs opening up to Israel, Pakistan wouldn’t face a backlash from the Islamic world if it also recognized Israel. Pakistanis believe economic and diplomatic benefits will come their way if they normalize relations with Israel.
A case in point is the existing usage of Fiverr and Wix.com, two Israeli software companies, used by Pakistani entrepreneurs/IT sector/freelance writers. Pakistan is ranked 10th in terms of freelancers on Fiverr, which makes it one of the best countries to get started with freelance work online. It has active communities online and offline making it easy for people to connect with clients, get work and start earning. Similarly, Wix.com is widely used by Pakistans youth and the corporate sector in website development. Thousands of youngsters and those looking for freelance opportunities have resorted to using fiver and Wix regardless of it being owned by Israel as it’s allowing them to earn enough income for their families.
In conclusion, if relations with Israel are formalized, not only will Pakistan’s IT sector greatly benefit but other domains like agriculture, health, and defense will also flourish. It does not make economic sense for Pakistan and its economy to miss out on chances of acquiring Hi-tech technologies for its national development.
