Abdullah Jan
Lahore: Germany and Pakistan enjoy longstanding economic relations, but considerable opportunities remain to expand trade, investment and business partnerships, German Ambassador Ina Lepel said during a visit to the Lahore Chamber of Commerce and Industry (LCCI) this week.
Addressing business leaders in Lahore, Lepel noted that companies in both countries are increasingly seeking to diversify international partnerships and supply chains. She said Pakistan had made progress in areas such as infrastructure and energy availability, but warned that regulatory uncertainty, complex taxation systems, limited transparency and bureaucratic hurdles continue to constrain investment and trade growth.
LCCI representatives highlighted Germany’s position as Pakistan’s largest trading partner within the European Union. Bilateral trade currently exceeds $2.5 billion, with Pakistan exporting goods worth approximately $1.7 billion and importing around $880 million from Germany, resulting in a trade surplus for Pakistan.
The chamber also welcomed Germany’s continued support for the European Union’s GSP+ trade framework, which has contributed significantly to Pakistan’s export growth. Business leaders reaffirmed Pakistan’s commitment to economic diplomacy and regional stability, citing its role in supporting peace and de-escalation efforts in recent geopolitical developments.
Lepel said German industry is actively pursuing new sourcing destinations and commercial partnerships, creating opportunities for emerging markets such as Pakistan. However, she stressed that improvements in governance, taxation and regulatory consistency are necessary to strengthen investor confidence and enhance export competitiveness.
The ambassador also underscored the importance of ongoing reforms supported by the International Monetary Fund, describing their sustained implementation as essential for long-term macroeconomic stability. She noted that Germany, as a member of the European Union, closely follows trade arrangements such as GSP+, which are linked to compliance with international standards on labour rights, human rights and environmental protection.
Highlighting broader bilateral cooperation, Lepel said Germany has committed approximately €114 million in development assistance focused on climate action, energy, private-sector development, health and social protection. She added that German technical assistance programmes are placing increasing emphasis on sustainability, circular economy initiatives and labour compliance across a range of sectors in Pakistan.
The ambassador also praised Pakistan’s efforts to support regional dialogue and conflict de-escalation, describing such initiatives as important contributions to stability and international cooperation.
