Pakistan, Sweden explore enhanced investment cooperation

ISLAMABAD, Oct 9 (APP):Minister for Board of Investment (BOI) Qaiser Ahmed Sheikh on Friday said that the government was placing greater emphasis on value-added exports, industrial development and the removal of barriers to investment, with interest emerging from international investors, including Chinese and American companies.

The minister said this in a meeting with Alexandra Berg von Linde, Ambassador of Sweden to Pakistan and discussed strengthening bilateral economic relations, enhancing investment cooperation and exploring new opportunities for Swedish companies in Pakistan.

Senior BOI officials, including Director General Abdul Samie and Asif Khan, along with other officials, attended the meeting, said a press release.

The minister underscored the longstanding and friendly relations between Pakistan and Sweden and acknowledged Sweden’s strengths in education, governance, technology and innovation. He observed that the two countries had considerable potential to expand their economic partnership, particularly by translating their longstanding ties into greater investment, technology transfer and business-to-business collaboration.

Pakistan was actively working to attract international investors and strengthen its position as an investment destination, he said and highlighted improvements in key economic indicators, the country’s external-sector position and sovereign credit assessments.

The minister identified agriculture, mining and minerals, information technology, digital services, engineering, manufacturing and other productive sectors as promising areas for Swedish investment. He particularly encouraged Swedish businesses to explore opportunities in sectors where Swedish expertise could support Pakistan’s economic transformation through technology transfer, innovation, modern production methods and sustainable industrial development.

Briefing the Ambassador on Pakistan’s Special Economic Zones (SEZs), the minister outlined the incentives available to eligible investors under the applicable legal and policy framework, including income-tax exemptions extending up to 2035 and exemptions on import duties and taxes on eligible machinery, subject to the relevant conditions. He explained that these incentives, together with investment facilitation measures, were intended to support industrial development, attract new capital and encourage export-oriented production.

Ambassador Alexandra Berg von Linde highlighted the longstanding connections between the two countries. She noted the presence of an active Pakistani diaspora in Sweden and the growing interest among Pakistani students in pursuing higher education there, providing further avenues for people-to-people contacts and institutional collaboration.

The Ambassador informed the Minister that Swedish companies in Pakistan were represented through the Swedish Business Council, where business-related concerns and investment opportunities were discussed regularly.

She suggested that direct engagement with Swedish companies could help identify challenges on the ground and provide a clearer understanding of the measures required to improve the business environment.

She offered to facilitate meetings with company representatives so they could share their operational experiences, highlight practical difficulties and suggest possible solutions.

Referring to the importance of the energy transition, the Ambassador expressed Sweden’s interest in supporting Pakistan’s efforts towards a more sustainable energy future. She also highlighted the importance of small and medium-sized enterprises (SMEs) in strengthening economic cooperation and creating opportunities for broader commercial engagement.

Director General Abdul Samie welcomed Sweden’s interest in engaging on the BIT review and reiterated BOI’s readiness to work closely with Swedish counterparts to move the process forward. He noted that BOI had already sought guidance on the way ahead and looked forward to constructive engagement.

Both sides also discussed the proposed commencement of the first round of BIT negotiations in November 2026, with a Swedish delegation expected to engage with Pakistani counterparts. Director General Abdul Samie reiterated BOI’s readiness to facilitate the process and emphasized the importance of identifying practical regulatory and operational bottlenecks faced by Swedish companies.