Pakistan pushes tariff reforms, invites European investment as global supply disruptions reshape trade dynamics

Pakistan is positioning itself to capitalise on shifting global trade patterns by accelerating tariff reforms, strengthening export readiness, and inviting greater European investment across emerging sectors, Federal Minister for Commerce Jam Kamal Khan said during meetings with senior European diplomats on Wednesday.

The discussions took place during separate engagements with European envoys, including Italy’s Ambassador to Pakistan, Marilina Armellin, and Denmark’s Ambassador to Pakistan, Maja Mortensen, where both sides explored opportunities to deepen bilateral trade, investment, and economic cooperation.

A central theme of the talks was Pakistan’s ongoing implementation of the National Tariff Policy, which envisions a phased reduction in import tariffs over a five-year period to support export-led growth and improve industrial competitiveness. The minister noted that tariff cuts have already been introduced across multiple sectors and will continue gradually, ensuring that domestic industries remain protected while manufacturers gain access to higher-quality imported inputs.

He emphasised that Pakistan stands out among countries pursuing progressive tariff liberalisation at a time when many economies are adopting protectionist measures in response to global economic uncertainty.

The conversations also addressed specific regulatory matters, particularly tariff classification issues in the dairy industry. Jam Kamal assured the diplomats that the government remains open to reviewing technical proposals, including the introduction of new Harmonised System (HS) codes where necessary to facilitate smoother trade operations.

Beyond tariff reforms, the minister highlighted Pakistan’s long-term economic potential, pointing to its large consumer market, strategic geographic position, and rich natural resource base. He stated that rising per capita incomes could transform the country into a significant regional consumption and import hub, creating new avenues for foreign investors.

European representatives acknowledged these prospects and signalled strong interest in expanding cooperation, especially in non-traditional sectors that offer high growth potential.

The transformation of Pakistan’s dairy industry emerged as another focal point of the discussions. The Danish delegation shared insights into innovative technologies designed to minimise production waste, particularly the conversion of whey byproducts into value-added goods such as protein beverages and nutritional bars.

Welcoming these initiatives, the commerce minister stressed the importance of technology transfer, skills development, and investment to modernise the sector. He noted that targeted support could significantly improve productivity and help transition the industry toward a more structured and efficient operational model.

The meeting also covered broader investment climate issues, including intellectual property protection. European diplomats expressed concerns regarding proposed amendments to Pakistan’s intellectual property framework, particularly those affecting the pharmaceutical industry.

In response, Jam Kamal reaffirmed Pakistan’s commitment to maintaining internationally recognised IP standards and strengthening enforcement mechanisms to ensure policy stability and investor confidence.

He further pointed to expanding export opportunities in the livestock and meat sectors, noting that supply disruptions in regional markets have increased demand for Pakistani products. To fully leverage this momentum, he stressed the need to formalise the sector, upgrade quality standards, and improve export preparedness across the value chain.

During the engagements, the minister also underscored Pakistan’s role as a responsible global partner, highlighting its continued support for dialogue and de-escalation amid rising geopolitical tensions. He warned that disruptions in critical maritime corridors, particularly the Strait of Hormuz, have already affected global supply chains for essential commodities including energy, food, medicines, and industrial inputs.

These developments, he said, reinforce the strategic importance of building diversified trade partnerships and resilient supply systems to safeguard economic stability.