In 2025, Canada-Pakistan bilateral trade surpassed $1 billion annually, driven by agrifood exports like canola, education partnerships, and consumer brands, unlocking mutual economic growth, investment opportunities, and resilient supply chains.
Key Points
- Trade volume tripled from $300 million in 2012 to over $1 billion in 2025, with balanced growth in exports and imports.
- Key drivers include Canadian canola resumption, textiles from Pakistan, and emerging sectors like IT and renewables.
- Milestone celebrated at Pakistan Stock Exchange in January 2026, signaling stronger investor confidence.
- Benefits encompass job creation, market diversification for Canada, and technology access for Pakistan.
- Future potentials involve FIPPA implementation and expanded consumer brand collaborations.
The achievement of over $1 billion in annual bilateral trade between Canada and Pakistan in 2025 marks a pivotal milestone, reflecting deepened economic synergies in a global landscape of interconnected markets. This surge, celebrated at the Pakistan Stock Exchange (PSX) in January 2026 by Canada Pakistan Business Council (CPBC) President Samir Dossal, underscores how strategic engagements can foster prosperity. For policymakers, it offers blueprints for sustained alliances; investors see lucrative avenues in diversified sectors; academics can examine growth models; and the general public benefits from enhanced affordability and opportunities. Blending recent developments with evergreen principles like mutual market access, this partnership exemplifies resilient bilateralism.
Historical context reveals steady progress: trade volumes grew from approximately $300 million in 2012 to $1.02 billion in 2022, dipped to $627 million in 2023 amid global challenges, and rebounded robustly to cross $1 billion in 2025. This threefold expansion over the decade highlights the evergreen value of diversified trade in hedging against economic volatility. Contemporary drivers include the resumption of Canadian canola exports in late 2025, following a joint statement facilitating market access after a three-year hiatus. Projections indicate canola imports could reach 1.35 million tonnes annually, valued at $600-700 million, bolstering Pakistan’s food security while expanding Canada’s agricultural markets.
Key sectors fueling this milestone include agrifood, where Canada’s canola and pulses meet Pakistan’s demand, and textiles, with Pakistan exporting $464 million in house linens and apparel to Canada in 2023—trends continuing upward. Education partnerships have also surged, with Pakistani diaspora in Canada facilitating knowledge exchanges and remittances exceeding $300 million annually. Consumer brands like Tim Hortons and Lululemon are expanding in Pakistan, while Pakistani firms gain access to Canadian markets, promoting innovation and cultural ties.
The January 2026 PSX event symbolized investor confidence, with Dossal noting agriculture, education, and brands as drivers. This aligns with 2025’s Foreign Investment Promotion and Protection Agreement (FIPPA) negotiations, aimed at transparent protections to attract FDI. For investors, opportunities abound in IT, where Pakistan’s 5,000+ startups pair with Canada’s tech hubs, potentially adding $200-300 million in trade. Renewables and mining, via projects like Barrick Gold’s Reko Diq, further enhance synergies, with expected $10 billion investments creating thousands of jobs.
Evergreen elements include diaspora networks as bridges for sustainable growth, reducing geopolitical risks through balanced trade. Contemporary data from September 2025 shows monthly trade at ~$78 million (C$106.2 million), annualizing to over $900 million, with full-year surpassing $1 billion per news reports. Academics might analyze this as a South-North model, where Pakistan’s young market (240 million population) complements Canada’s advanced economy.
Challenges like regulatory alignment persist, but promotional initiatives—such as CPBC’s role in $1 billion trade facilitation—pave the way. Policymakers should prioritize FIPPA ratification; investors explore joint ventures; the public enjoys lower costs from imports and jobs from exports. Overall, this milestone heralds a new era of cooperative prosperity.
Conclusion. The $1 billion trade milestone in 2025 cements Canada-Pakistan as dynamic partners, with agrifood, education, and innovation driving mutual gains. This achievement promises economic resilience, urging policymakers to advance agreements, investors to seize sectors, academics to study models, and the public to benefit from growth. Sustained collaboration will amplify prosperity, modeling global ties.
* Dr. Muhammad Jahanzaib is the Founder & Chief Visionary Officer (CVO) of Diamanium Thinkers, a global think tank. He holds a PhD in International Relations, specializing in the intersection of politics and economics in Pakistan’s foreign and domestic policy. A double gold medalist and published scholar, he writes on economic intelligence, economic diplomacy, political economy, AI and regional cooperation in South Asia and beyond. He can be reached at jahanzaibdgc@gmail.com.
Key References
- Pakistan, Canada bilateral trade hits $1bn – https://mettisglobal.news/Pakistan-Canada-bilateral-trade-hits-1bn-57772
- Pakistan–Canada Trade Crosses $1 Billion Per Year – https://propakistani.pk/2026/01/13/pakistan-canada-trade-crosses-1-billion-per-year
- Ottawa Trade and Investment – https://mofa.gov.pk/ottawa-trade-and-investment
- Canada (CAN) and Pakistan (PAK) Trade – https://oec.world/en/profile/bilateral-country/can/partner/pak
- Canada-Pakistan relations – https://www.international.gc.ca/country-pays/pakistan/relations.aspx?lang=eng
- Pakistan, Canada agree to strengthen bilateral trade – https://www.brecorder.com/news/40402268