Pakistan, EU vow to boost economic cooperation and trade ties

September 19, 2025 (MLN): The newly appointed Ambassador of the European Union to Pakistan, H.E. Mr. Raimundas Karoblis, called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division on Thursday.

During the meeting, both sides discussed matters of mutual interest, focusing on enhancing economic cooperation and strengthening bilateral trade and investment ties between Pakistan and the European Union.

Welcoming the Ambassador, the Finance Minister briefed him on the country’s economic situation, noting that the economy was on the path to recovery and supported by wide-ranging macroeconomic reforms in taxation, energy, state-owned enterprises, public finance, and rightsizing of government institutions.

He expressed optimism that the privatization process would gain further momentum, adding that the Prime Minister was personally leading the reform agenda.

The Minister highlighted recent positive assessments from all three leading global credit rating agencies, which reflected growing confidence from bilateral partners, including the EU.

He said business sentiment had improved, while efforts were underway to further facilitate investors.

Speaking on the devastation caused by recent floods, Senator Aurangzeb said over 950 lives had been lost, with significant damage to crops, livestock, roads, bridges and other infrastructure.

He informed that the government was managing rescue and relief operations from its own resources, while damage assessments were being carried out by the National Disaster Management Authority and through satellite imagery.

He added that the federal cabinet would decide on making an appeal for international support in rehabilitation and reconstruction efforts.

The Finance Minister welcomed plans to activate the EU-Pakistan Business Forum, offering full support in this regard and encouraged EU companies to explore investment opportunities in sectors such as oil and gas, mining, IT, agriculture and privatization prospects in power, financial and aviation sectors.

He also thanked the EU for its support under the GSP Plus scheme.

Ambassador Karoblis congratulated the Minister on Pakistan’s recent credit rating upgrades and assured the EU’s continued support for the country’s economic progress.

He noted that over 300 EU companies were operating in Pakistan and reaffirmed his commitment to expanding bilateral trade and investment ties.

He shared plans to fully revive the EU-Pakistan Business Forum, with a meeting scheduled for the first half of next year.

The Ambassador highlighted that the GSP Plus regime had boosted Pakistan’s exports to the EU, with over 30% of exports destined for the EU market.

He also referred to European Investment Bank projects in Pakistan, including water and sanitation initiatives in Karachi and upcoming plans for railways, energy, and rural housing.

Ambassador Karoblis expressed condolences on the loss of lives and infrastructure due to the floods.

Both sides reaffirmed their commitment to strengthening the Pakistan-EU economic partnership and exploring new avenues of cooperation.

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