German envoy underscores need for expanding economic portfolio beyond textile sector

LAHORE: Her Excellency Ms Ina Lepel, Ambassador of Germany to Pakistan, has called upon Pakistan to expand its economic portfolio beyond the traditional textile sector in order to fully capitalize on the benefits offered under the Generalized Scheme of Preferences Plus (GSP Plus) arrangement.

The Ambassador expressed these views while addressing an exclusive networking event organized by the German-Pakistan Chamber of Commerce and Industry (GPCCI) in Lahore. The event was designed to facilitate business-to-business connections within the Pakistan-Germany business community in Punjab and to showcase Pakistan’s investment opportunities to potential stakeholders.

During her address, Ambassador Lepel highlighted Pakistan’s strategic significance on the global stage, noting that the country’s geopolitical position makes it an important partner for both Germany and the European Union. However, she stressed that Pakistan’s over-reliance on the textile industry limits its potential in the international market and prevents the country from realizing the full scope of opportunities available through preferential trade arrangements.

The Ambassador acknowledged the significant challenges currently facing Pakistani industry, particularly the burden of high energy costs that continue to hamper competitiveness and constrain industrial growth. She suggested that addressing these structural issues while simultaneously diversifying into new sectors would strengthen Pakistan’s economic resilience and enhance its standing in global markets.

Despite these challenges, Ambassador Lepel expressed optimism about the prospects for strengthening bilateral trade relations between Germany and Pakistan. She pointed to several promising sectors where cooperation could be enhanced, including engineering, pharmaceuticals, information technology, and agro-processing industries.

The German envoy concluded her remarks by reaffirming Germany’s commitment to supporting Pakistan’s economic development and encouraging Pakistani businesses to explore new opportunities in the European market through strategic diversification and improved industrial efficiency.

Arif Saeed, Honorary Consul General of Germany in Lahore and Chief Executive Officer of Servis Industries Limited, called on German companies to invest in Pakistan, citing the country’s exceptional human resources as a key competitive advantage.

Speaking about business opportunities at the event, Saeed emphasized that Pakistan possesses significant untapped potential for foreign investors and encouraged German enterprises to explore the Pakistani market more actively.

Despite facing considerable obstacles including persistent inflation and high energy costs, Servis Industries has emerged as Pakistan’s largest shoe exporter to Europe, with Germany representing a particularly important market for the company. The success story of Servis Industries demonstrates the viability of manufacturing operations in Pakistan even amid challenging economic headwinds.

Saeed’s remarks highlighted the resilience of Pakistani businesses and underscored the country’s capacity to compete effectively in international markets. His dual role as both a business leader and diplomatic representative positions him uniquely to advocate for strengthened Pakistan-Germany economic ties and to bridge the gap between the two business communities.

Sameed Iqbal, Marketing Director at Rija Fashions, provided detailed insights into Pakistan’s textile sector, focusing specifically on trade relationships with Germany and the European Union. His presentation addressed current market dynamics and highlighted opportunities for Pakistani textile exporters seeking to expand their presence in European markets.

Sarim Mehmood, Founder and Chief Executive Officer of Fruit of Sustainability, explored the evolving landscape of global trade sustainability requirements. His discussion centered on risk assessments and Human Rights and Environmental Due Diligence (HREDD), examining the implications of the EU Corporate Sustainability Due Diligence Directive, German’s Supply Chain Due Diligence Act (LkSG), and GSP Plus status for Pakistani businesses navigating increasingly complex international compliance standards.

Raheel Iqbal, Chief Executive Officer of The Game Storm Studios (Pvt) Ltd and Vice Chairman of the Pakistan Software Houses Association (P@SHA), highlighted recent developments in Pakistan’s information technology industry. He outlined P@SHA’s role as the country’s premier IT industry association and discussed the sector’s growth trajectory, achievements, and ongoing challenges.

Aarij Iqbal, Chief Executive Officer of Textile Engineers of Pakistan and Alpha Penta, and President of the Italian Development Committee, provided an in-depth analysis of Pakistan’s agriculture sector. His presentation covered innovations in food technology and sustainable agricultural practices that are shaping the industry’s future and enhancing its export competitiveness.

According to Acting Secretary General Saniya Khan, the networking event was designed to foster proactive engagement among GPCCI members and business leaders from Lahore, Islamabad, and Sialkot. Participants gained valuable insights into Pakistan’s business and investment landscape, Germany’s supply chain regulations, and key sectors driving bilateral trade between the two nations.

The event spotlighted top-performing industries including textiles, information technology, and agriculture, which form the backbone of Germany-Pakistan commercial relations. The initiative seeks to strengthen GPCCI’s membership base while reinforcing Pakistan’s credentials as an attractive business destination for German companies and investors.

The gathering represented a significant step toward deepening economic cooperation between Pakistan and Germany, with stakeholders from both countries expressing commitment to exploring new avenues for collaboration and mutual growth in an increasingly interconnected global economy.

Copyright Business Recorder, 2025