ISLAMABAD: Pakistan on Thursday proposed signing a Free Trade Agreement (FTA) with the United Kingdom (UK), terming it a natural progression of the growing economic partnership between the two countries.
The proposal was floated during a meeting between Federal Minister for Commerce Jam Kamal Khan and Director General (Political) of the United Kingdom Edward Llewellyn. British High Commissioner Jane Marriott also accompanied the delegation. The two sides discussed bilateral trade, regional security, and the evolving global energy situation.
Both countries reaffirmed their commitment to strengthening trade ties and reviewed progress under the Pakistan–UK Trade Dialogue. They appreciated the establishment of a working group on Healthcare and Life Sciences and agreed to activate additional working groups to enhance cooperation in IT, agriculture, professional services, and education and skills development.
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Speaking on the occasion, Jam Kamal Khan said Pakistan remains committed to structural reforms aimed at improving the trade environment and attracting foreign investment. He noted that the government’s tariff policy and regulatory improvements are designed to make Pakistan a more competitive and business-friendly destination. “Consistency in policy and gradual reforms are key to building long-term investor confidence,” he added.
Secretary Commerce Jawad Paul highlighted that the ongoing trade dialogue provides a strong foundation for future cooperation and suggested that both sides should consider moving towards an FTA in the longer term.
The UK side urged Pakistan to consider its suggestions regarding proposed changes in the intellectual property framework and emphasized the importance of policy consistency. Edward Llewellyn noted that investor confidence depends not only on policies but also on clear and consistent signalling from the government. He stressed that timely consultation and transparency would help reassure international businesses and encourage further investment.
Both sides also discussed the issue of geographical indication (GI) and trademark registration of Pakistani basmati rice and agreed to continue engagement on the matter.
The strategic importance of the Strait of Hormuz also came under discussion, with both sides expressing concern over rising shipping costs and risks to global trade. Pakistan highlighted the impact of increased maritime charges on its exports and called for a fair assessment of risk zones.
The meeting concluded with both sides agreeing to maintain close coordination and continue dialogue to address shared challenges and further strengthen Pakistan–UK relations in trade, energy, and regional stability.
According to official data, total trade in goods and services between the UK and Pakistan stood at £5.6 billion in the four quarters ending Q3 2025, reflecting an increase of 13.5 percent (£661 million) compared to the same period last year. UK exports to Pakistan amounted to £3.0 billion, up 19.3 percent, while imports from Pakistan totalled £2.5 billion, up 7.1 percent. Pakistan ranked as the UK’s 46th largest trading partner, accounting for 0.3 percent of total UK trade.
Copyright Business Recorder, 2026
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