ISLAMABAD: Pakistan and the United Kingdom (UK) decided to form a new business advisory council as officials from both countries met in London at the inaugural UK-Pakistan Trade Dialogue, the British high commission in Islamabad said on Monday.
The development came during the dialogue co-chaired by UK Minister for Trade Policy and Economic Security Douglas Alexander and Pakistan’s Commerce Minister Jam Kamal Khan, who is on an official visit to the UK from July 14 till July 20.
The UK maintains zero-tariff access of Pakistan’s exports post-Brexit, making it Pakistan’s largest European and third-largest individual export partner, according to the Pakistani foreign ministry.
The UK-Pakistan Business Advisory Council will bring together senior business leaders and government officials to provide strategic advice on policy reform, offer a confidential forum for engagement, and help promote commercial opportunities by addressing market access challenges and sharing best practices.
“Today’s Dialogue marks the next step in our long-standing relationship with Pakistan, taking our trading partnership to the next level and unlocking new opportunities for businesses in both our countries,” Alexander was quoted as saying by the British high commission.
“By deepening cooperation in key sectors like health care and digital technology – areas central to the UK’s Industrial Strategy – we can drive growth, foster innovation, and create jobs.”
The high commission did not share an exact date about the establishment of the new advisory council.
Bilateral trade between the two countries in goods and services reached £4.7 billion in 2024, an increase of 7.3 percent, or £320 million, compared to the previous year, according to the UK government data. Of this £4.7 billion, UK exports to Pakistan amounted to £2.2 billion, while its imports from Pakistan amounted to £2.5 billion.
Khan, whose visit aims to deepen bilateral commercial ties and strengthen institutional frameworks, said the dialogue laid the foundation for a more structured and forward-looking trade relationship between both sides.
“The UK remains one of Pakistan’s most important economic partners,” he was quoted as saying. “By strengthening collaboration and aligning our priorities, we can expand bilateral trade, attract greater investment, and create sustainable economic opportunities that benefit both nations.”
Britain also announced up to £200,000 to support Pakistan’s aspirations to attract investment from the UK.
“The funds will provide technical assistance for investor outreach, and support matchmaking between Pakistani investors and UK-based opportunities,” the British high commission said in its statement.
“This initiative reflects the UK’s commitment to supporting Pakistan’s ambitions to increase outbound investment and to strengthening the bilateral investment relationship.”
Khan’s visit comes at a time when Pakistan is striving to draw overseas investment amid a gradually healing macroeconomic environment after a prolonged downturn that forced Islamabad to seek external financing from friendly nations and multiple loan programs from the International Monetary Fund (IMF).
The British high commission said Monday’s discussions focused on key sectors, including information technology and health care, under the UK’s Industrial Strategy, which presents a “significant opportunity” for businesses and investors.
“The UK is committed to making it easier, faster, and more predictable for international firms to operate in its market. This includes reforms in skills development, innovation, regulation, and planning – creating a more dynamic and open business environment,” it said.
“Through the alignment of the UK’s Industrial Strategy and the UK–Pakistan Trade Dialogue, we are reaffirming our commitment to open and fair trade, and to deepening economic ties with key partners like Pakistan.”
UK, Pakistan agree to set up new business advisory council at inaugural trade dialogue
https://arab.news/pvzv2
UK, Pakistan agree to set up new business advisory council at inaugural trade dialogue
- The Pakistan-UK trade in goods and services reached £4.7 billion in 2024, an increase of 7.3 percent, compared to the previous year
- The dialogue reaffirms the UK’s commitment to open and fair trade and to deepening economic ties with Pakistan, high commission says
73% of foreign firms in Pakistan see it as a viable investment destination — survey
- OICCI survey highlights improved investor optimism since 2023, when it stood at 61%
- Regulatory unpredictability, high costs continue to keep foreign investors cautious
ISLAMABAD: Seventy-three percent of overseas investors operating in Pakistan now recommend the country as a viable destination for direct investment, up from 61% in 2023, according to a survey of more than 200 multinational companies released on Friday, signaling a measurable improvement in investor sentiment following Pakistan’s 2022–23 foreign exchange crisis.
The 2025 Perception and Investment Survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents multinational firms in the country, found that improving macroeconomic indicators and recent policy reforms have begun to restore confidence, though investors remain cautious about regulatory unpredictability and rising business costs.
“The 2025 Perception and Investment Survey ... provides a cautiously optimistic snapshot of investor sentiment in
Pakistan,” the report said, noting that “improvements in macroeconomic indicators and recent policy reform initiatives have begun to rebuild confidence among foreign investors.”
The survey pointed to relative exchange-rate stability after a period of steep rupee depreciation, alongside credit rating upgrades by international agencies.
“73% of OICCI members now recommend Pakistan as a viable FDI destination, compared to 61 percent two years earlier,” it added.
Despite the improved macro picture, the survey warned that structural and regulatory challenges continue to weigh on investment decisions.
“The broader regulatory landscape remains complex and unpredictable,” it said, highlighting delays in tax refunds, inconsistent enforcement and weak coordination between federal and provincial authorities.
Foreign direct investment, while showing some positive movement, “remains concentrated in cautious brackets,” with most investors opting for modest commitments despite a decline in the proportion of firms planning no future investment.
Rising costs were a major concern, with nearly all respondents reporting increases in energy prices, wages and raw material costs. Political instability, sudden regulatory changes and an unclear fiscal roadmap were listed among the top investor apprehensions.
The survey warned that despite the positive outlook among multinationals operating in Pakistan, international perception of the country has improved only marginally, adding that “negative global coverage continues to influence investment decisions significantly,” and underscoring the need for a more proactive international communication strategy.
