Pakistan, Netherlands agree to deepen economic cooperation

October 23, 2025 (MLN): Pakistan and the Netherlands have agreed to strengthen bilateral trade and investment ties, as Federal Minister for Finance and Revenue Muhammad Aurangzeb met with the newly appointed Dutch Ambassador, Robert–Jan Siegert, at the Finance Division on Thursday.

During the meeting, both sides discussed opportunities to expand cooperation in investment, trade, and private sector development.

The Finance Minister welcomed the Ambassador and appreciated the Netherlands’ long-standing partnership with Pakistan across development and business sectors.

Aurangzeb said Pakistan has transitioned from macroeconomic stabilization to growth, supported by structural reforms and stronger fundamentals.

He noted that all three global rating agencies have upgraded Pakistan’s outlook, reflecting international confidence in its economic recovery.

The Minister briefed the Ambassador on the IMF program’s progress, including reforms in taxation, energy, governance of state-owned enterprises (SOEs), and privatization.

He said the government is working to restore investor confidence, adding that profit repatriation for foreign investors has resumed smoothly.

Aurangzeb emphasized that Pakistan is shifting its economic model from consumption-led to investment- and export-led growth, aiming to end the cycle of external dependence.

He pointed to minerals, agriculture, IT, infrastructure, and pharmaceuticals as key areas for foreign investment.

He also highlighted efforts to broaden the tax base and improve revenue collection through digital systems and AI-based monitoring tools.

The government, he said, is committed to ensuring fair taxation and reducing informality in sectors such as retail, real estate, and agriculture.

The Minister informed that Pakistan is advancing its privatization and SOE reform agenda, noting the recent successful divestment of a financial institution and upcoming power sector transactions.

He added that customs duties are being reduced gradually to enhance export competitiveness and move away from protectionist barriers.

Ambassador Siegert reaffirmed the Netherlands’ commitment to expanding economic engagement with Pakistan.

He said around 50 Dutch companies are currently operating in the country and expressed interest in exploring new opportunities in agriculture, IT, and textiles.

He also underlined the importance of GSP+ trade preferences for Pakistan’s export sector and appreciated Islamabad’s active engagement with the EU as the new GSP+ cycle approaches.

Both sides agreed to continue close collaboration to deepen economic, trade, and investment partnerships between Pakistan and the Netherlands.

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