Pakistan and the United Kingdom have formalized a new agreement to enhance their economic partnership, marking a significant step in deepening bilateral trade and investment. Signed on July 14, 2025, in London, the Trade Dialogue Mechanism Agreement establishes a structured framework for collaboration, focusing on sectors such as digital trade, renewable energy, agriculture, and pharmaceuticals.
The agreement was signed by Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, and the UK’s Minister of State for Trade Policy and Economic Security, Douglas Alexander. The ministers also announced the creation of the UK-Pakistan Business Advisory Council, a platform designed to bring together senior business leaders and government officials. This council aims to facilitate high-value trade, address market access challenges, and promote policy reforms to foster economic growth.
The agreement includes plans for joint working groups and annual ministerial meetings to identify and pursue growth opportunities. The UK has also pledged up to £200,000 to support Pakistan’s efforts to attract British investment, emphasizing sectors like healthcare and digital technology, which align with the UK’s Industrial Strategy. Posts on X reflect positive sentiment, highlighting the agreement’s potential to boost bilateral trade to €4.7 billion annually, strengthening economic ties between the two nations.
This development builds on the longstanding relationship between Pakistan and the UK, with the UK being one of Pakistan’s largest European export markets and a significant source of foreign direct investment. The agreement reinforces Pakistan’s commitment to economic stability and export-led growth, while offering British businesses greater access to a dynamic market.
Published in SouthAsianDesk, July 15th, 2025
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