Pakistan and UK Strengthen Economic Ties Through New Trade Dialogue Mechanism

Pakistan and the United Kingdom have reaffirmed their commitment to strengthening economic cooperation through the recently signed Pak–UK Trade Dialogue Mechanism. The mechanism aims to expand bilateral trade and investment, creating new commercial opportunities and enhancing economic ties between the two nations.

Minister for Planning, Development, and Special Initiatives, Prof. Ahsan Iqbal, met with the UK’s Minister of State for Trade Policy, Chris Bryant, to review progress under the framework. Ahsan Iqbal emphasized the historic bond between Pakistan and the UK, rooted in cultural and people-to-people ties, and highlighted the need to translate that goodwill into tangible economic growth. He noted that bilateral trade, currently at £5.5 billion, represents only a fraction of the potential, and the Trade Dialogue Mechanism should act as a catalyst to unlock further opportunities.

The minister stressed the importance of quickly operationalizing the three working groups established under the mechanism to address priority areas, including tariffs, sanitary and phytosanitary measures, and other trade-related technical issues. The working groups are expected to become fully functional within six months, ensuring expert-led solutions to enhance trade efficiency.

Chris Bryant welcomed the initiative, which was signed in July 2025 and includes provisions for annual ministerial engagements. He underscored the value of technical discussions and collaborative solutions to facilitate smoother trade between the two countries.

During the meeting, Ahsan Iqbal briefed the UK delegation on Pakistan’s recent economic progress, highlighting falling inflation and recovering growth. He stated that Pakistan has successfully reversed the economic downturn of recent years and is now open for business like never before. He also outlined the government’s vision, under Prime Minister Shehbaz Sharif, to position Pakistan as a regional investment hub, with particular focus on information technology and skilled human resources.

Ahsan Iqbal emphasized that Pakistan’s young and highly skilled tech workforce represents a significant asset, and deep technology collaboration between Pakistan and the UK could create a new bridge for economic growth and innovation between the two countries.