Canada and Pakistan’s development partnership blends humanitarian aid, climate resilience, trade and research. Bolstered by significant diaspora ties and mutual investments, both nations can leverage cooperation to build a resilient, inclusive and prosperous future together.
Key Points
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Area |
Key insights |
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Humanitarian aid |
Canada provided over CA$58 million in assistance for Pakistan’s floods and committed CA$2.6 million more in 2025 – canada.ca – ca.news.yahoo.com. Aid funded emergency relief, longterm recovery and Afghanrefugee support – canada.ca. |
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Health & social development |
Canada’s feminist international assistance policy supports gender equality, women’s health and rights. Funding includes CA$151 million for the Global Polio Eradication Initiative (2024) – canada.ca and multiple projects via the International Development Research Centre (IDRC) totaling CA$43.8 million since 1977 – idrc-crdi.ca. |
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Major projects |
The Reko Diq coppergold project – jointly owned by Barrick Gold and the federal and Balochistan governments – is set to invest CA$10 billion and create thousands of jobs. Financing talks in 2025 aim to raise US$2 billion, including funding from Export Development Canada – reuters.com. |
Why Canada–Pakistan cooperation matters
Policymakers in both countries recognize that a resilient partnership can enhance security and prosperity. Canada is home to a vibrant Pakistani diaspora of over 215,000 Canadians of Pakistani origin – international.gc.ca, making Pakistan its fifthlargest source of permanent residents. Remittances from Canada remain robust—US$708 million in FY 202122 and US$552 million in FY 202223 — and underpin family incomes and currency reserves. Beyond peopletopeople ties, Pakistan and Canada have over 60 years of development cooperation – international.gc.ca. This historical foundation gives weight to contemporary initiatives, including climate resilience, humanitarian relief and trade integration.
Humanitarian aid and climate resilience: building back better
Pakistan faces recurring climate disasters, from historic 2022 floods that affected 33 million people to heavy rains and heatwaves that continued through 2024 – unocha.org. Canada responded swiftly. In August 2022, Ottawa allocated CA$5 million in emergency humanitarian assistance – canada.ca, and by September it had matched Canadian donations up to CA$3 million and pledged an additional CA$25 million for flood response and recovery – reliefweb.int. Canada’s 2023 announcement at the International Conference on Climate Resilient Pakistan committed CA$25 million for climateresilient reconstruction, bringing total floodrelated assistance to CA$58 million – canada.ca. Subsequent support included CA$14 million for Afghanrefugee and hostcommunity projects in 2023 – canada.ca and CA$2.6 million in humanitarian aid in 2025 for displaced Pakistanis and refugees – ca.news.yahoo.com.
Canadian aid is not limited to emergency relief. Through the Aga Khan Foundation Canada (AKFC), Global Affairs Canada invested CA$15 million in the RENEW project (2025–2027), which aims to help nearly 682,000 people recover livelihoods, build climateresilient infrastructure and improve women’s leadership – akfc.ca. Another example is Canada’s longstanding support for polio eradication: a CA$20 million commitment in 2022 to support Pakistan’s vaccination campaigns – reliefweb.int grew to a CA$151 million contribution to the Global Polio Eradication Initiative in 2024, helping vaccinate over 370 million children annually – canada.ca.
Seizing opportunities for investors
The Reko Diq coppergold project – led by Canadian company Barrick Gold – is one of the world’s largest undeveloped deposits. After the project’s reinstatement, Barrick agreed to a joint ownership structure: 50 % Barrick, 25 % federal government and 25 % Balochistan government. The agreement stipulates a CA$10 billion investment and promises around 7,500 jobs during construction and 4,000 permanent jobs in production. In April 2025, Reuters reported that Barrick is working to secure over US$2 billion in financing, including US$650 million from the International Finance Corporation and International Development Association and additional funding from Export Development Canada and other lenders – reuters.com. The mine, slated for first production in 2028, could generate US$70 billion in free cash flow and US$90 billion in operating cash flow – reuters.com, making it a landmark foreign investment.
Beyond mining, Pakistan seeks Canadian investment in energy, IT and agriculture. At a 2025 Pakistan Day reception in Ottawa, High Commissioner Muhammad Saleem noted that Canada was among the top five investors in Pakistan and urged the Canadian business community to expand portfolios in these sectors. Canada is also considering a General Preferential Tariff Plus scheme that would expand dutyfree access for developing countries meeting labour and environmental standards; Pakistan is preparing its case to benefit from this scheme. If approved, Pakistani exporters could gain improved access to Canadian markets.
Academic and research cooperation: fostering knowledge and innovation
Academics play a crucial role in shaping sustainable development. Canada’s International Development Research Centre (IDRC) has supported 126 projects worth CA$43.8 million in Pakistan since 1977 – idrc-crdi.ca. These projects cover digital health, early marriage prevention, policyrelevant research and governance improvements – idrc-crdi.ca. IDRC has facilitated research to conserve soil and water in the Hindu KushHimalayas, introduced internet access to remote villages and developed Urdu digital fonts to bridge the digital divide – idrc-crdi.ca. The South Asian Network for Development and Environmental Economics, supported by IDRC, conducts applied research linking environmental conservation with economic policy – idrc-crdi.ca. Such initiatives provide evidencebased insights for policymakers and nurture a generation of Pakistani researchers with strong international networks.
Educational exchanges also contribute to peopletopeople understanding. Thousands of Pakistani students study in Canadian universities, benefiting from scholarships and research grants. Canada’s emphasis on gender equality and inclusive education aligns with Pakistan’s humancapital needs and fosters longterm socioeconomic uplift.
Policy analysis and recommendations
- Prioritize climate resilience and disaster preparedness. Pakistan remains highly vulnerable to disasters and weather prone risks. Canada should integrate climate adaptation into all assistance – supporting resilient housing, early warning systems and communitybased disasterrisk reduction. Joint research on climatesmart agriculture, renewable energy and sustainable water management could reduce vulnerability while creating green jobs.
- Deepen investment partnerships. Policymakers should finalise regulatory frameworks for megaprojects like Reko Diq and facilitate publicprivate partnerships in renewable energy, mining, technology and agriprocessing. Canada’s development finance institution, FinDev Canada, recently committed US$40 million to a private equity fund targeting IndoPacific midcap firms – findevcanada.ca; similar instruments could mobilize capital for Pakistani SMEs, especially womenled enterprises.
- Enhance trade facilitation. Simplifying customs procedures, improving logistics and developing ecommerce platforms can boost bilateral trade. Pakistan should leverage its General Preferential Tariff Plus proposal to obtain better market, while Canada can support capacitybuilding for Pakistani exporters. Opportunities in digital marketing, AIenabled services and IT outsourcing – as highlighted by technology news outlets—should be promoted to investors.
- Strengthen academic collaboration. Expanding IDRC and university partnerships in climate research, socio-economic inclusion, public health, artificial intelligence and gender studies will generate knowledge tailored to Pakistan’s challenges. Joint research chairs, student exchanges and digital learning platforms can be cofunded through the Canada Fund for Local Initiatives (CFLI), which already provides smallscale grants to local NGOs, academic institutions and government bodies – international.gc.cainternational.gc.ca.
Conclusion
Canada and Pakistan stand at a strategic crossroads. Climateinduced disasters, rapid digital transformation and shifting geopolitical dynamics present both risks and opportunities. Their sixdecade partnership – marked by generous humanitarian aid, ambitious investments like the Reko Diq project, expanding trade and robust research cooperation – demonstrates that tangible progress is possible through collaboration. Policymakers should lock in climateresilient projects and fair trade arrangements; investors must seize opportunities in mining, renewable energy and technology; academics need to deepen research on inclusive development; and citizens can build cultural bridges. By aligning priorities and leveraging diaspora connections, Canada and Pakistan can transform resilience into shared prosperity.
* 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
- Canada-Pakistan relations – Government of Canada overview of bilateral ties, development priorities and diaspora statistics – international.gc.ca.
- Trading Economics data – Canada’s 2024 exports to Pakistan by product – tradingeconomics.com.
- Reuters report on Reko Diq financing – Details of 2025 financing negotiations, projected cash flows and investor participation – reuters.com.
- IDRC Pakistan profile – Overview of research projects and total Canadian investments – idrc-crdi.ca.
- Aga Khan Foundation’s RENEW project – Flood recovery and climate resilience initiative – akfc.ca.