LAHORE: German Ambassador to Pakistan Ina Lepel has said that Pakistan and Germany share long-standing friendly and economic relations, but significant untapped potential still exists in trade diversification, investment expansion, and business-to-business cooperation.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI), she said that both German and Pakistani businesses are increasingly looking to diversify their global partnerships. While acknowledging improvements in infrastructure and certain economic indicators in Pakistan, she pointed out challenges such as regulatory unpredictability, taxation complexity, lack of transparency, and red-tapism continue to restrict trade and investment growth.
Speaking on the occasion, the LCCI president stated that Germany remains Pakistan’s largest trading partner in the European Union with bilateral trade exceeding 2.5 billion dollars. He said Pakistan’s exports to Germany stand at 1.7 billion dollars, while imports are 880 million dollars, reflecting a stable trade balance in Pakistan’s favour. He appreciated Germany’s continued support for the GSP+ framework, which has played a significant role in supporting Pakistan’s export growth. He underscored Pakistan’s commitment to economic diplomacy and regional stability, noting its constructive role in supporting peace and de-escalation efforts in recent geopolitical developments.
The German ambassador, in her detailed remarks, said that the German industry is actively seeking diversification of supply chains and new global partnerships, creating fresh opportunities for countries like Pakistan. She observed that while Pakistan has made progress in infrastructure and energy availability, structural challenges in taxation, governance, and regulatory consistency continue to limit investor confidence and export competitiveness.
She also referred to the importance of ongoing IMF-supported reforms and stated that sustained implementation is essential for long-term macroeconomic stability. She pointed out that Germany, within the framework of the European Union, closely monitors trade arrangements such as GSP+, which are linked to compliance with international conventions on labour rights, human rights, and environmental standards.
She appreciated Pakistan’s diplomatic efforts in regional peace-building and acknowledged its role in facilitating dialogue and de-escalation in sensitive geopolitical situations. She further shared that Germany has committed approximately 114 million euros in development cooperation focused on climate, energy, private sector development, health, and social protection.
She added that German technical assistance programmes are increasingly focusing on sustainability, circular economy, and labour compliance across multiple sectors in Pakistan.
Copyright Business Recorder, 2026
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