Pakistan and the United Kingdom have agreed to establish a UK-Pakistan Business Advisory Council following the inaugural UK-Pakistan Trade Dialogue, held on July 14 in London.
The high-level meeting was co-chaired by Douglas Alexander, UK Minister for Trade Policy and Economic Security, and Jam Kamal Khan, Pakistan’s Federal Minister of Commerce. The Dialogue marks a strategic move to institutionalize trade cooperation, promote bilateral investments, and create new commercial opportunities across both economies.
The newly formed Business Advisory Council will bring together senior business leaders and government officials from both nations. According to the UK government, it will “provide strategic advice on policy reform, offer a confidential forum for engagement, and help promote commercial opportunities by addressing market access challenges and sharing best practices.”
Although the British High Commission did not confirm a launch date for the Council, its establishment is seen as a critical mechanism for sustained dialogue and economic collaboration. It is also expected to focus on facilitating high-value trade in priority sectors including healthcare and digital technology.
Pakistan, UK Ministers reaffirm long-term trade vision
The Dialogue also resulted in a commitment to annual ministerial meetings aimed at unlocking growth and ensuring a consistent focus on trade expansion.
UK Minister for Trade Policy and Economic Security Douglas Alexander said: “Today’s Dialogue marks the next step in our long-standing relationship with Pakistan, taking our trading partnership to the next level and unlocking new opportunities for businesses in both our countries. By deepening cooperation in key sectors like healthcare and digital technology – areas central to the UK’s Industrial Strategy – we can drive growth, foster innovation, and create jobs.”
Pakistan’s Federal Minister for Commerce, Jam Kamal said: “The UK remains one of Pakistan’s most important economic partners. This Dialogue lays the foundation for a more structured and forward-looking trade relationship. By strengthening collaboration and aligning our priorities, we can expand bilateral trade, attract greater investment, and create sustainable economic opportunities that benefit both nations.”
chatgpt.comAs Minister Khan’s visit continues through July 20, expectations remain high for further initiatives to bolster institutional trade frameworks, attract foreign direct investment, and diversify export markets.
UK pledges £200,000 Investment Support for Pakistan
As part of its commitment to supporting Pakistan’s investment climate, the UK announced up to £200,000 in technical assistance. The funding will support investor outreach, matchmaking initiatives, and facilitate connections between Pakistani investors and UK-based opportunities.
“This initiative reflects the UK’s commitment to supporting Pakistan’s ambitions to increase outbound investment and to strengthening the bilateral investment relationship,” British High Commission in Islamabad said in a statement.
The move is timely for Pakistan, which is seeking to attract foreign investment amid a gradual economic recovery following a prolonged macroeconomic downturn and financial assistance from the International Monetary Fund (IMF).
Bilateral Trade continues upward momentum
The dialogue also celebrated continued growth in trade between the two countries. According to UK government figures, bilateral trade in goods and services reached £4.7 billion in 2024, a 7.3% increase compared to the previous year. Of this, UK exports to Pakistan amounted to £2.2 billion, while imports from Pakistan stood at £2.5 billion.
Pakistan continues to benefit from zero-tariff access to the UK market post-Brexit, making the UK Pakistan’s largest European trading partner and third-largest overall.
Both governments emphasized that the alignment of the UK’s industrial and investment strategies with Pakistan’s reform agenda would foster a more dynamic, open, and inclusive trading environment. Key reforms in innovation, regulation, and skills development are being prioritized to ease international business operations and create long-term growth.
Joint statement on first UK-Pakistan Trade Dialogue
Here are the key outcomes from the official joint statement on the UK–Pakistan trade dialogue held on July 14, 2025.
- Business Advisory Council Launched: A new UK–Pakistan Business Advisory Council will bring together senior business leaders and officials to guide policy, resolve market access challenges, and promote trade and investment. First meeting expected later this year.
- Trade Growth Highlighted: Bilateral trade reached £4.7 billion in 2024 — a 7.3% increase from the previous year, with growth opportunities identified in IT, healthcare, agri-tech, education, and professional services.
- £200,000 UK Support for Investment in Pakistan: The UK pledged up to £200,000 in technical assistance to support Pakistan’s efforts in investor outreach and matchmaking with UK opportunities.
- Priority Sector Alignment: The UK prioritized healthcare, education, and IT, while Pakistan focused on agriculture, mining, textiles, and pharmaceuticals. Officials will develop joint sectoral workplans before the next meeting.
- IP Protection: Both countries agreed to collaborate on strengthening Intellectual Property rights protections to support business confidence and innovation.
- DCTS Trade Preferences: The UK reaffirmed Pakistan’s preferential access under the Developing Countries Trading Scheme (DCTS), with 92% of Pakistani goods eligible for zero tariffs.
- Export Promotion Campaign Launched: A UK-supported campaign will help Pakistani businesses expand globally through media partnerships and events.
- Diaspora Investment Emphasis: Ministers acknowledged the role of diaspora investors in driving bilateral investment and committed to enhancing related engagement.
- Stronger Institutional Coordination: Annual ministerial meetings and regular working group sessions were agreed to ensure long-term, structured economic cooperation.