Exploring Malta’s Market: A Golden Opportunity for Pakistani Exporters

March 2, 2025 Mahi Bukhari

Introduction

Pakistan’s trade relations with Malta have remained largely untapped despite significant growth potential. In contrast, India’s exports to Malta have surged, leaving Pakistani exporters with a vast, unexplored market. Honorary Investment Counsellor to Malta, Ziaul Noor, has urged Pakistani businesses to capitalize on Malta’s import-driven economy and strategic location to boost exports and establish a stronger foothold in the European market.

Pakistan’s Trade Volume with Malta: A Missed Opportunity

Current Export Figures

In 2023, Pakistan’s total exports to Malta stood at approximately $5.07 million, reflecting a 28.35% increase from $3.95 million in 2022. The major exported goods from Pakistan to Malta included:

Textile articles, sets, and worn clothing: $3.58 million
Surgical instruments and equipment
Electronics and organic chemicals

Comparison with India’s Exports

In stark contrast, India’s exports to Malta were valued at $287.09 million in 2023, marking a 42.7% growth from $201 million in 2022. The dominant Indian export sectors to Malta included:

Pharmaceuticals: $194.16 million
Organic chemicals
Electronics, ceramic products, and cereals

Pakistan’s Competitive Edge

Noor highlighted that Pakistan has a strong presence in pharmaceuticals, organic chemicals, electronics, ceramics, and textiles—sectors in which India is already thriving in Malta. By strategically positioning itself, Pakistan can compete and expand its trade presence in these high-demand industries.

Why Malta? Understanding the Market Potential

Strategic Location and Economic Advantages

Malta, an island nation in the European Union (EU) and Schengen States, serves as a gateway to European trade. In 2023, Malta’s total imports were valued at $10.7 billion. Key advantages of trading with Malta include:

Minimal customs clearance procedures
Low import tariffs
EU certifications and compliance standards
Efficient shipping and logistics
Access to EU’s free trade agreements

Import-Driven Economy: Opportunities for Pakistani Exporters

Malta relies heavily on imports, presenting a lucrative opportunity for Pakistani businesses to penetrate various sectors, such as:

Pharmaceuticals and surgical equipment
Grains, lentils, and spices
Tiles, marble, and ceramics
Electronics and household goods
Steelware, cutlery, and textiles (bedding, curtains, blankets)

Investment in Warehousing and Trade Hubs

Establishing warehousing facilities in Malta would facilitate quicker distribution of Pakistani products across Europe. Goods cleared in Malta benefit from:

Free trade agreements within the EU
Reduced customs duties
A lower VAT rate of 18%

Steps Pakistani Exporters Should Take

1. Participate in Malta’s Trade Exhibitions

A single-country trade expo in Malta is being planned to enable Pakistani exporters to:

Network with Maltese and European importers
Hold conferences and business meetings
Showcase high-quality Pakistani goods

2. Set Up a Trade Centre in Malta

A dedicated trade centre has been launched in Malta to:

Exhibit Pakistani products
Facilitate business interactions with European buyers
Enhance brand visibility in the region

3. Focus on Government Tenders and Medical Supply Chains

Malta imports all its medical supplies, including:

Pharmaceuticals and surgical instruments
Hospital textiles and bedding
Medical consumables and supplies

Pakistani exporters can tap into government tenders for these essential goods.

4. Improve Competitive Pricing and Quality Compliance

To succeed in Malta, Pakistani businesses must:

Ensure compliance with EU standards
Offer competitive pricing
Provide high-quality, certified products

Bilateral Relations: The Pakistan-Malta Connection

Historical Trade and Cooperation

Pakistan has historical ties with Malta, dating back to the establishment of Air Malta (now KM Malta Airlines). Pakistan International Airlines (PIA) initially held a 20% share in Air Malta, and in 1975, Maltese pilots received training in Pakistan. These longstanding bilateral ties can serve as a foundation for strengthening trade relations today.

Potential for Future Growth

With strategic investments and better trade policies, Pakistan can:

Expand its export base to Malta
Leverage Malta as a gateway to the European market
Strengthen diplomatic and economic ties with the EU

Conclusion

Pakistan’s low trade volume with Malta represents a missed opportunity in a highly profitable European market. By targeting key sectors, improving trade logistics, and leveraging Malta’s strategic location, Pakistani exporters can significantly enhance their footprint in the region. With dedicated trade hubs, government support, and competitive pricing, Pakistan can compete with India and other players in Malta’s market.

FAQs

1. Why should Pakistani exporters focus on Malta?

Malta is an import-dependent economy with minimal trade barriers, offering access to the European market through free trade agreements and efficient logistics.

2. What are the top Pakistani products that can be exported to Malta?

Pharmaceuticals, textiles, surgical instruments, ceramics, electronics, steelware, and food items like grains, lentils, and spices.

3. How can Pakistani businesses establish a presence in Malta?

By participating in trade expos, setting up warehousing facilities, and utilizing Malta’s trade hubs for product promotion and distribution.

4. What challenges do Pakistani exporters face in Malta?

Ensuring compliance with EU standards, establishing competitive pricing, and building trade networks with Maltese and European buyers.

5. What are the benefits of warehousing in Malta for Pakistani exporters?

Warehousing in Malta facilitates quicker distribution across Europe, reduces customs duties, and provides access to EU’s trade agreements with a lower VAT rate.