ISLAMABAD, Oct 23 (APP): Pakistan and Netherlands on Thursday reaffirmed their commitment to strengthening bilateral trade and investment cooperation, with both sides expressing interest in expanding collaboration across agriculture, IT, textiles and other potential sectors.
The commitment was made during a call-on meeting of the new Ambassador of the Kingdom of the Netherlands to Pakistan, Robert–Jan Siegert, with Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.
The Finance Minister welcomed the Ambassador on his diplomatic assignment in Pakistan and conveyed appreciation for the longstanding and historic ties between the two countries, acknowledging Dutch support across development, trade and private sector-led initiatives.
The Finance Minister shared that Pakistan, after navigating a difficult period of macroeconomic adjustment, has now transitioned towards stability with a renewed emphasis on investment and structural reforms. He highlighted that Pakistan’s economic fundamentals have strengthened over the past two years, with all three global rating agencies upgrading the country’s outlook.
He briefed the Ambassador on the progress under the IMF programme, noting that the IMF management has expressed confidence in Pakistan’s reform trajectory, particularly with respect to tax reforms, energy sector stabilization, governance improvements in State-Owned Enterprises (SOEs), and the ongoing privatization agenda.
Senator Aurangzeb informed that the government was focused on restoring investor confidence and creating an enabling ecosystem for private sector investment. He shared that profit repatriation constraints faced by foreign investors have been eased, and the profits and dividends are being repatriated as a routine matter.
He added that Pakistan is now shifting from consumption-led growth to investment- and export-led growth to break the recurring boom-bust cycles of the past.
The minister underscored that major areas of investment interest whether from GCC, Europe, the US or China remain consistent, with actionable opportunities in minerals and mining, agriculture, IT, infrastructure and pharmaceuticals.
He added that Pakistan was now moving towards sustainable foreign inflows through trade and investment partnerships rather than reliance on bilateral deposits or external loans.
The Finance Minister elaborated on efforts to broaden the tax base, reduce informality and ensure equitable taxation across sectors including retail, real estate and agriculture.
He highlighted the rapid digitalization of revenue processes through AI-based monitoring systems to curb leakages in multiple sectors. He also apprised the Ambassador of progress on SOE reforms, right-sizing of federal entities, and the privatization of select institutions, noting the recent successful divestment of a financial institution and upcoming transactions for power distribution companies.
Recalling the Netherlands’ export-led economic model, the minister emphasized the need for Pakistan’s industries to enhance competitiveness in global markets. He pointed out that Pakistan has initiated a phased reduction in additional customs duties over the next four to five years to gradually remove long-standing protectionism and strengthen export orientation.
On the occasion, Ambassador Siegert reaffirmed the Netherlands’ commitment to expanding trade and investment ties with Pakistan.
He noted that around 50 Dutch companies are currently operating in the country and expressed interest in exploring opportunities in agriculture, IT, textiles and other sectors where the Netherlands has strong expertise.
He also referenced FMO’s role as a key Dutch development finance institution that could support future investments in Pakistan.
The Ambassador highlighted the importance of GSP+ for Pakistan’s export sector and appreciated Pakistan’s proactive engagement on related matters and acknowledged the government’s intent to remain constructively engaged as the new GSP+ cycle approaches.
Senator Aurangzeb reaffirmed Pakistan’s commitment to meeting its reform and compliance obligations and assured continued engagement with the EU and its member states, including the Netherlands, on matters related to GSP+.