Islamabad: Egypt has proposed the creation of a commercial corridor linking the Suez Canal Economic Zone (SCZONE) with Pakistan’s Gwadar Port, Foreign Minister Badr Abdelatty said during his visit to Islamabad on Sunday. The move is part of Cairo’s broader strategy to expand its logistics and industrial footprint in South Asia.
Abdelatty discussed the proposal in a meeting with Prime Minister and Foreign Minister Ishaq Dar, where both sides explored ways to strengthen economic and investment cooperation. The discussions included facilitating linkages between the SCZONE and Gwadar, as well as the possibility of localising value-added industries within the Egyptian zone.
The plan seeks to connect two significant nodes of global maritime trade. The SCZONE—a 455-square-kilometre special economic area spanning six ports along the Suez Canal—handles nearly 12% of global trade and serves as a key gateway to African and European markets. Gwadar, operated by the China Overseas Port Holding Company, is the flagship deep-sea port of the USD 62 billion China-Pakistan Economic Corridor (CPEC).
A commercial route connecting the two hubs could offer a more streamlined flow of goods from China and Central Asia through the Arabian Sea to the Mediterranean, aligning with the “Maritime Silk Road” component of China’s Belt and Road Initiative.
The proposal formed part of wider talks on strengthening bilateral economic ties. Both countries also discussed developing a joint action plan between Egypt’s General Authority for Investment and Free Zones and Pakistan’s Board of Investment. Additionally, they underscored the need to reactivate the Joint Business Council to support private-sector partnerships.
During the meeting, Abdelatty highlighted Egypt’s recent economic reforms—including adopting a flexible exchange rate and tightening monetary policies—which he said have improved the country’s credit rating and created a more favourable investment climate.
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