Pakistan, Denmark signal deeper economic and energy cooperation

November 18, 2025 (MLN):  Pakistan and Denmark are moving to strengthen economic and energy-sector cooperation, with discussions focusing on investment conditions, infrastructure projects, and climate finance reforms.

Danish companies are showing growing interest in the country’s logistics, maritime, manufacturing, and renewable energy sectors, said a press release issued.

The developments emerged during a meeting in Islamabad between Finance Minister Senator Muhammad Aurangzeb and Denmark’s newly appointed ambassador, Maja Mortensen.

Mortensen said three Danish delegations are visiting Pakistan this week, highlighting rising commercial engagement.

Aurangzeb noted that Pakistan had cleared foreign payment backlogs and cited improvements in key macroeconomic indicators, including higher foreign exchange reserves, a stabilizing rupee, and easing inflation.

He emphasized reforms to broaden the tax base, reduce energy-sector losses, and lower financing costs to create a more favorable environment for foreign investors.

Energy cooperation featured prominently, with Denmark’s government-to-government program supporting grid planning, energy modeling, and infrastructure efficiency. Officials also reviewed Denmark’s wastewater treatment project in Faisalabad, one of the largest in the region, financed through loans and grants with a six-year sustainability and knowledge-transfer plan.

Both sides discussed climate finance reforms, with Pakistan integrating climate-resilience measures into national budgeting. Mortensen is expected to meet Danish businesses in Pakistan and visit Lahore and Karachi in the coming weeks to further assess commercial opportunities.

Regular engagement between both countries will continue to advance trade, investment, energy transition, and development cooperation.

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