Pakistan’s top commerce official has acknowledged that temporary tax increases under an IMF programme have created significant pressure on businesses, an admission made during a high-level meeting with the Danish ambassador on Saturday aimed at expanding bilateral trade and investment.
Federal Minister for Commerce Jam Kamal Khan explained that while the recent fiscal measures were essential to meet revenue targets for the country’s economic stabilization, the government intends to gradually ease this burden to improve the overall business climate.
During the discussions, Khan pointed to signs of economic recovery, noting that challenges with profit repatriation have been largely resolved. He added that foreign exchange reserves were stabilizing and remittances from overseas Pakistanis were demonstrating solid growth.
A significant portion of the meeting was dedicated to Pakistan’s evolving energy sector. The two officials deliberated on the rapid industrial migration toward solar and other renewable solutions, a shift that has lessened demand on the national grid. The Danish envoy provided an update on Denmark’s three-year partnership with Pakistani institutions, which focuses on enhancing energy planning and grid efficiency.
Both representatives agreed that restoring industrial dependence on the national grid, or generating new industrial demand for it, was critical for the country’s long-term energy sustainability.
The Danish ambassador conveyed that businesses in her country have a keen interest in Pakistan’s agricultural and information technology sectors. However, she noted some firms remain cautious due to outstanding legal and certification requirements.
In response, the commerce minister encouraged Danish companies to explore Pakistan’s burgeoning IT sector, highlighting its competitive operational costs and the annual graduation of approximately 80,000 skilled professionals. Khan also invited Denmark to participate in upcoming trade exhibitions in Lahore and Karachi, expressing optimism that improved travel advisories would boost foreign attendance.
The minister also briefed the ambassador on Pakistan’s fast-growing cosmetics and personal care industry, which is successfully capturing market share in several African nations by offering a diverse range of competitively priced products.
The meeting concluded with both sides reaffirming their commitment to strengthening commercial linkages, fostering business-to-business engagement, and exploring fresh avenues for cooperation.