Egypt Invites Pakistani Companies to Manufacture for US Market Access

Egypt has offered Pakistani firms the chance to set up factories in Cairo, leveraging Egypt's preferential trade deals with the United States.

NationPulse Desk

Nov 5, 2026 · 3:46 PM 4 min read

Key takeaways

Egypt invited Pakistani companies to set up manufacturing in Cairo to access the US market.

The invitation was made during Jam Kamal Khan's meeting with Mohamed Farid Saleh at COMCEC in Istanbul.

Both ministers highlighted cotton and textile cooperation as a priority sector.

Saleh requested details of Pakistani firms for an upcoming business forum.

Jam Kamal also met Saudi and Tunisian officials to discuss broader trade cooperation.

Egypt has invited Pakistani companies to establish manufacturing operations in the North African country, offering them an opportunity to access the US market 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.

Why the Offer Matters for Pakistan

Pakistan's export basket has long relied on textiles, garments and agricultural products, but the country faces high tariff barriers when shipping directly to the United States. Egypt's Generalized System of Preferences (GSP) with the United States allows qualifying goods to enter the U.S. market with reduced or zero tariffs. By locating production in Egypt, Pakistani firms could qualify under the same scheme, potentially lowering costs and expanding market share.

What Egypt Gains From Pakistani Investment

Egypt is seeking to diversify its industrial base and attract foreign direct investment (FDI) to revive its manufacturing sector, which has struggled since the 2011 political upheaval. Pakistani expertise in cotton processing and garment assembly aligns with Egypt's own cotton heritage, creating a natural synergy. The partnership could also help Egypt meet its own export targets under the Egypt-U.S. Trade and Investment Framework Agreement.

Background of COMCEC and Bilateral Talks

The Standing Committee for Economic and Commercial Cooperation (COMCEC) is a key forum within the Organisation of Islamic Cooperation (OIC) that brings together trade ministers from member states to discuss economic integration, trade facilitation and investment promotion. The 42nd session in Istanbul provided a platform for side-meetings such as the one between Jam Kamal Khan and Mohamed Farid Saleh, where the idea of a joint business forum was first raised.

Details of the Proposed Business Forum

Saleh requested a list of Pakistani companies that intend to attend the upcoming business forum, indicating that the Egyptian side wants to arrange one-on-one meetings, site visits to industrial zones and introductions to local banks and regulatory bodies. The forum is expected to include presentations on Egypt's investment incentives, such as tax holidays, customs duty exemptions and access to the Suez Canal free-zone logistics hub.

Sector Focus: Cotton and Textiles

Both ministers highlighted cotton and textile cooperation as a priority. Egypt produces high-quality long-staple cotton, while Pakistan is one of the world's largest cotton growers and has a well-established garment manufacturing ecosystem. Joint ventures could involve spinning, yarn production, fabric weaving and finished garment assembly, with the end product qualifying for U.S. preferential duty treatment.

Educational Opportunities Mentioned

Saleh also pointed to affordable educational programmes for Pakistani students in fields such as science, technology, medicine, healthcare and engineering. These programmes are part of Egypt's broader soft-power strategy to build people-to-people links that complement commercial ties.

Parallel Discussions With Saudi Arabia and Tunisia

During the same COMCEC session, Jam Kamal Khan met Saudi Arabia's Deputy Governor for International Organizations and Agreements, Fareed S. Alasaly. The dialogue covered agriculture, industrial development, human-resource training, livestock and food security, with both sides agreeing to explore joint projects that could serve African markets.

In a separate meeting with Tunisia's Minister of Trade and Export Development, Samir Abid, Kamal discussed the low current trade volume and the need for coordinated efforts to unlock potential. Both parties stressed the importance of institutional mechanisms, such as trade promotion organisations, to sustain momentum.

How Pakistani Companies Can Participate

Companies interested in the Egyptian offer should prepare a concise dossier that includes:

Company profile and core competencies
Proposed investment size and timeline
Compliance plan for U.S. rules of origin
Potential partnership models with Egyptian firms

These details will help Egyptian officials match Pakistani firms with suitable local partners and facilitate visa, land-allocation and financing arrangements.

Regulatory Steps for Setting Up in Egypt

Foreign investors must register with the General Authority for Investment and Free Zones (GAFI), obtain a commercial registration, and secure any sector-specific licences. Egypt offers a 10-year tax holiday for projects that meet a minimum investment threshold, typically US$5 million, and customs duty exemptions on imported capital equipment.

What to Watch for Next

The next public step is the announcement of the business forum date and the official list of participating Pakistani firms. Observers will also monitor any follow-up statements from the Ministry of Commerce in Pakistan regarding incentives for firms that invest abroad, as well as any bilateral agreement that may codify the preferential treatment under U.S. trade rules.

Stakeholders should stay alert for updates from COMCEC's final communiqué, which may include a formal memorandum of understanding between Pakistan and Egypt on industrial cooperation.

Questions and answers

What advantage does Egypt offer Pakistani firms for US market access?

Egypt's preferential trade arrangements with the United States allow qualifying goods to enter the US with reduced or zero tariffs, which Pakistani manufacturers could use if they produce in Egypt.

When and where was the invitation extended?

The invitation was discussed on the sidelines of the 42nd Session of COMCEC in Istanbul, Türkiye, during a bilateral meeting between Jam Kamal Khan and Mohamed Farid Saleh.

Which sectors are being targeted for cooperation?

The ministers highlighted cotton and textile sectors, as well as broader manufacturing, education and human-resource development.

What steps must Pakistani companies take to invest in Egypt?

Companies need to register with Egypt's General Authority for Investment and Free Zones, obtain commercial registration, and may qualify for a 10-year tax holiday and customs exemptions on capital equipment.

Are there any related talks with other countries?

Yes, Jam Kamal also met Saudi Arabia's Deputy Governor for International Organizations and Agreements and Tunisia's Minister of Trade to discuss agriculture, industrial development and trade expansion.