ISLAMABAD:

Scores of Swedish small and medium-sized enterprises (SMEs) are eager to explore opportunities in Pakistan, particularly in the textile garment sector, and a business delegation is expected to visit Karachi soon to interact with local manufacturers and assess the potential for export.

Swedish Ambassador Alexandra Berg von Linde stated this in a meeting with Federal Minister for Commerce Jam Kamal Khan on Monday, where they discussed bilateral trade, investment opportunities and other areas of mutual collaboration. The ambassador expressed her condolences over the recent loss of lives and property in Pakistan, caused by heavy rains and cloudburst incidents. Jam Kamal, while terming it a natural disaster, underlined the urgent need for collective efforts to address climate change challenges.

During the meeting, both sides reviewed avenues where they could strengthen economic cooperation, with a special focus on trade enhancement. The minister highlighted Pakistan’s potential in textiles, readymade garments, IT and technical education, mining, surgical goods and sports equipment, noting that Swedish companies could greatly benefit from investing in those sectors.

The ambassador acknowledged Pakistan’s reputation in textile exports, noting that Swedish buyers consider Pakistani products among the best in the world. Jam Kamal told the ambassador that, for the first time in Pakistan’s history, the government was gradually reducing import tariffs, which would be brought down to 15-20% within the next five years. The policy aims to support exports while allowing imports of quality products not available domestically, which will enable value addition before re-export.

He highlighted Pakistan’s progress on reforms, especially the establishment of the National Compliance Centre to help local businesses meet national and international standards. He proposed the organisation of seminars in association with the compliance centre to inform foreign companies and diplomatic missions about compliance processes in Pakistan.

Both sides identified mining, renewable energy, green technologies, vocational training and skill development as areas for future collaboration. The commerce minister emphasised that Pakistan had a large pool of skilled youth, especially in healthcare, where Pakistani professionals could meet shortages in Europe, including the nursing staff.

He underscored that more than 40 Swedish companies, including global brands such as H&M and IKEA, were already sourcing goods from Pakistan, reflecting the strength of bilateral economic ties. He invited Swedish investment in renewable energy, sustainable manufacturing, IT and infrastructure, while encouraging Sweden’s participation in the upcoming trade events in Pakistan such as FoodAg 2025.

The minister appreciated Sweden’s consistent support for Pakistan’s GSP Plus status in the European Union and urged continued advocacy during the next review process. He also called for enhanced engagement between Pakistan’s central bank and Swedish financial regulators to address the compliance-related issues faced by exporters.

Reaffirming Pakistan’s commitment to deepening political, economic and people-to-people ties, he said both countries had an immense untapped potential for cooperation.