ISLAMABAD: The United Kingdom on Wednesday unveiled what it called a “major reset” in its development partnership with Pakistan, announcing new investment-focused cooperation, education programs and a bilateral climate compact during a visit by UK Minister for Development Jennifer Chapman.

The trip marks the first federal-level development dialogue between the two governments in eight years and reflects London’s shift from a traditional aid-donor role toward investment-based partnerships. The British government said the new approach aims to use UK expertise to help partner economies build capacity and unlock domestic growth.

Pakistan-UK trade has also reached a record high, crossing £5.5 billion ($7.3 billion) for the first time, with more than 200 British firms now active in Pakistan, an increase London says signals growing two-way commercial confidence.

“Pakistan is a crucial partner for the UK. We work together to tackle the drivers behind organized crime and illegal migration, keeping both our countries safer,” Chapman was quoted as saying in a statement by the British High Commission in Islamabad. 

“Our strong bilateral trading relationship brings jobs and growth to us both. And we’re working together to tackle climate change, a global threat.”

The minister and Prime Minister Shehbaz Sharif on Tuesday jointly launched a package of business regulatory reforms aimed at improving Pakistan’s investment climate and making it easier for UK firms to operate. Officials said the initiative supports Pakistan’s economic recovery agenda and creates new commercial avenues for British companies.

A second key announcement was the next phase of the Pak-UK Education Gateway, developed with the British Council and Pakistan’s Higher Education Commission. The expanded program will enable joint research between universities in both countries, support climate- and technology-focused academic collaboration, and introduce a startup fund to help commercialize research. The Gateway will also promote UK university courses delivered inside Pakistan, giving students access to British degrees without traveling abroad.

Accompanied by Pakistan’s Minister for Climate Change Dr. Musadik Malik, Chapman also launched a Green Compact, a framework for climate cooperation, green investment, environmental protection and joint work at global climate forums.

The UK emphasized it remains one of Pakistan’s largest development partners, citing ongoing work in education, health, climate resilience and anti-trafficking capacity building. 

During the visit to Pakistan, Chapman will meet communities benefiting from UK-supported climate programs, which London says helped 2.5 million Pakistanis adapt to climate impacts in the past year, and observe training of airport officers working to prevent human trafficking.

“We remain firm friends of Pakistan, including in times of crisis, as shown through our floods response,” Chapman said. “And we know to accelerate growth in both our countries, we must work together in partnership to tackle the problems we face.”