Investor confidence: EU urges Pakistan to ensure policy stability, transparency

ISLAMABAD: The European Union has urged Pakistan to ensure predictability, transparency and consistency in its policies while maintaining a conducive business environment to enhance investor confidence and attract long-term investment.

The message was conveyed during a meeting between Federal Minister for Commerce Jam Kamal Khan and EU Ambassador to Pakistan Raimundas Karoblis, where both sides discussed issues faced by European investors and gaps in the full implementation of conditions under the GSP Plus Scheme.

According to officials, European stakeholders emphasized that a stable, predictable and transparent policy framework is essential to strengthen business confidence and encourage sustainable foreign investment in Pakistan.

READ MORE: EU signals more assertive economic engagement strategy

The meeting primarily focused on preparations for the upcoming Pakistan–EU Business Forum 2026, scheduled to be held in Islamabad on April 28–29, 2026, as well as the continued importance of the GSP+ scheme in supporting Pakistan’s exports.

Both sides agreed that the forum will serve as a key platform to deepen trade and investment cooperation between Pakistan and the EU. The event is expected to attract a large number of participants, including government officials, business leaders, and institutional stakeholders from both sides.

Officials noted that extensive business-to-business (B2B) engagements will be a central feature of the forum, with hundreds of meetings planned between Pakistani and European companies.

These interactions are aimed at fostering direct partnerships, facilitating investment flows, and identifying new areas of collaboration across multiple sectors.

The commerce minister highlighted that the forum comes at a critical juncture and provides an opportunity for Pakistan to project a strong, business-friendly image at the global level. He reiterated the government’s commitment to ensuring the success of the event through facilitation of international participants and expansion of B2B engagement opportunities.

Both sides also explored the possibility of institutionalizing such engagements by making the forum a regular feature, thereby creating a sustained platform for continuous dialogue between Pakistani and European businesses. The need to maintain momentum between such events through structured engagement mechanisms was also emphasized.

A major focus of discussions remained the GSP+ scheme, which continues to play a pivotal role in supporting Pakistan’s exports to European markets. European representatives acknowledged Pakistan’s progress under the scheme and noted that it has significantly enhanced export opportunities, particularly in the textile sector.

The minister reaffirmed Pakistan’s commitment to fulfilling all obligations under the GSP+ framework, describing it as a cornerstone for strengthening bilateral trade ties. He stressed that maximizing the benefits of the scheme is critical for sustaining export growth and improving competitiveness in global markets.

The meeting also reviewed Pakistan’s ongoing tariff rationalization efforts aimed at reducing duty structures to facilitate the import of raw materials and intermediate goods. European partners welcomed these measures, noting that efficient import policies are vital for boosting exports and strengthening industrial supply chains.

In addition, both sides discussed prospects for broader regional collaboration, including the possibility of engaging Gulf countries in future initiatives to create trilateral investment opportunities involving Pakistan, the EU, and the Gulf region.

The EU side noted that Pakistan offers significant potential for European investors, citing its growing market, strategic geographic location, and expanding industrial base.

The meeting concluded with a shared commitment to further deepen Pakistan-EU trade and investment relations, ensure effective implementation of GSP+ commitments, and leverage upcoming platforms such as the Pakistan–EU Business Forum to deliver tangible outcomes for businesses on both sides.

Copyright Business Recorder, 2026