Pakistan and UK Agree to Speed Up Trade Mechanism and Deepen Economic Ties - As-Salaam-Alaikum
As-Salaam-Alaikum. Pakistan and the United Kingdom have decided to accelerate a trade mechanism and strengthen their economic partnership, with both sides reaffirming commitment to boost investment and cooperation across important sectors, the Pakistani government said on Thursday.
Planning Minister Ahsan Iqbal met with the UK’s Minister of State for Trade Policy Chris Bryant to push forward Pakistan–UK economic cooperation under the recently signed Pakistan–UK Trade Dialogue Mechanism. The UK continues to give zero-tariff access to many of Pakistan’s exports after Brexit, keeping the UK as Pakistan’s largest European and third-largest single export partner, the foreign ministry noted.
Iqbal stressed the need to expand bilateral trade beyond the current £5.5 billion ($7.2 billion), saying Pakistan and the UK have strong political ties and now must translate that into economic growth. “With £5.5 billion in bilateral trade, we have only scratched the surface. The Trade Dialogue Mechanism should be the engine to unlock our real economic potential,” he said.
He urged that three working groups set up under the mechanism be made operational quickly to address priority areas and open commercial opportunities. “We can’t afford delays. The working groups should start right away so our next ministerial meeting delivers clear, measurable results.”
Bryant welcomed the Trade Dialogue Mechanism signed in July 2025, which calls for annual ministerial meetings and requires the working groups to be functional within six months. He said technical talks on measures and tariffs are essential and highlighted the need for experts to craft practical solutions.
When asked about Pakistan’s broader economic direction, Iqbal outlined Islamabad’s efforts over the past three years to stabilize and revive the economy. “Pakistan has turned around the recent downturn. Inflation is easing, growth is returning, and Pakistan is open for business like never before,” he said, adding that Pakistan aims to be seen as a regional investment hub offering stability and long-term value.
Pakistan is working to attract overseas investment as its macroeconomic situation gradually improves after a difficult period that required outside financing and IMF programs. Iqbal pointed to Pakistan’s strong IT talent and tech sector as key areas for UK collaboration, calling deep technology partnerships a way to build a new bridge between the two economies.
He also called for reviving joint business forums to foster private-sector links and noted both countries’ interest in boosting cultural cooperation in areas like fashion and design, music and arts, and tourism. “Our cultural ties are a living bridge. Fashion, arts, design, and tourism can bring our peoples closer,” Iqbal added.
May Allah grant success to efforts that bring mutual benefit and prosperity.
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