Pakistan, Germany reaffirm commitment to boosting trade and investment ties

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Monday praised Germany for its technical and financial support to Pakistan, underlining the importance of further investment by German companies in the country’s economy.

During a meeting with the Ambassador of Germany to Pakistan, Ina Lepel, at the Finance Division, Aurangzeb welcomed the ambassador and reaffirmed Pakistan’s commitment to strengthening bilateral economic ties. 

The finance minister assured continued support for German investors, including facilitating the repatriation of profits and dividends, to ensure a smooth expansion of German businesses in Pakistan.

Aurangzeb shared an overview of Pakistan’s economic situation, noting recent improvements in key economic indicators. He also briefed the ambassador on the ongoing IMF review mission and Pakistan’s progress toward meeting its quantitative and structural benchmarks under the program.

The finance minister also addressed the challenges posed by the devastating floods and the broader impact of climate change, stressing the government’s commitment to fostering an investment-friendly environment. 

Aurangzeb emphasised that Prime Minister Shehbaz Sharif is focused on allowing the private sector to lead the nation’s growth.

Ambassador Lepel, recalling her previous diplomatic assignment in Pakistan, expressed support for the government’s efforts to encourage private sector participation and foreign investment in a welcoming business climate. 

Both sides agreed to explore new opportunities for further enhancing Pakistan-Germany trade, investment, and development cooperation.

Both sides also reviewed progress in the energy sector, where Pakistan and Germany have expanded cooperation through ongoing grant programmes worth €9.5 million. Federal Minister for Energy Sardar Awais Ahmad Khan Leghari, in a separate meeting with the German Development Agency (GIZ), reaffirmed the government’s commitment to modernizing the power system through digitization, renewable integration, and pilot projects.

The German delegation highlighted a €7 million technical assistance initiative running until 2026, alongside an additional €2.5 million grant for Battery Energy Storage Systems. Pilot efforts to digitize feeders in PESCO and LESCO are already under way. Leghari termed energy sector modernization a vital national priority, while Germany assured continued support to make Pakistan’s power sector more modern and environmentally sustainable.