Pakistan, Italy, Denmark explore trade expansion amid tariff cuts

April 15, 2026 (MLN): Pakistan is moving ahead with a multi-year tariff reduction plan under its National Tariff Policy, even as many economies shift toward protectionist measures.

Commerce Minister Jam Kamal Khan said during separate meetings with the ambassadors of Italy and Denmark, showing a policy direction aimed at boosting competitiveness and attracting investment.

The minister shared that tariffs have already been reduced across several sectors and will continue to decline over a five-year horizon, positioning Pakistan among a limited group of countries pursuing trade liberalization amid global economic uncertainty.

The policy shift is designed to support export-led growth while ensuring access to higher-quality imported inputs for domestic industries.

The discussions were held with Italy’s Ambassador Marilina Armellin and Denmark’s Ambassador Maja Mortensen, focusing on expanding bilateral trade, investment, and sector-specific collaboration.

The impact of recent disruptions in global shipping routes, particularly around the Strait of Hormuz, which have strained supply chains for energy, food, pharmaceuticals, and industrial inputs.

Pakistan’s push for diversified trade partnerships and resilient supply systems comes as these disruptions raise costs and delay shipments across key markets.

With a population exceeding 250 million, Pakistan is positioning itself as a growing consumption and import market alongside its export ambitions.

The government expects that rising per capita incomes could further expand demand, creating opportunities for foreign investors in both traditional and emerging sectors, according to the press release.

A key area of interest during the meeting was the dairy sector, where Denmark signaled interest in introducing technologies to reduce waste and convert byproducts such as whey into value-added products, including protein-based foods.

The government is seeking foreign investment and technical partnerships to modernize the largely informal sector and improve productivity.

Concerns around intellectual property protections, particularly in pharmaceuticals, were also raised by the European side.

The commerce ministry maintained that Pakistan will adhere to international IP standards and strengthen enforcement to support a predictable investment climate.

Separately, the minister pointed to rising export potential in livestock and meat, where Pakistan has seen stronger demand from regional markets amid supply disruptions.

Efforts are underway to formalize the sector, improve quality standards, and enhance export readiness to capture a larger share of regional trade.

Copyright Mettis Link News