LAHORE - Ambassador of Germany Ina Lepel stated on Tuesday that Pakistan's diplomatic efforts for peace have been an amazing feat. She appreciated Pakistan's role in regional peace-building and acknowledged its efforts in facilitating dialogue and de-escalation in sensitive geopolitical situations. She addressed the business community during her visit to the Lahore Chamber of Commerce and Industry (LCCI), where LCCI President Faheem Ur Rehman Saigol, Senior Vice President Tanveer Ahmed Shiekh, Vice President Khurram Lodhi, and Executive Committee members were present. The meeting covered bilateral trade, investment opportunities, and institutional cooperation.
Bilateral Trade and Investment Potential
The German ambassador noted that Pakistan and Germany share long-standing friendly and economic relations, but significant untapped potential exists in trade diversification, investment expansion, and business-to-business cooperation. She remarked that both German and Pakistani businesses are increasingly looking to diversify their global partnerships. Bilateral trade, despite being stable, has remained relatively stagnant compared to its potential. She emphasized that German industry is actively seeking diversification of supply chains and new global partnerships, creating fresh opportunities for countries like Pakistan. This shift encourages greater engagement with emerging markets.
Challenges and Reforms
While acknowledging Pakistan's progress in infrastructure and energy availability, the ambassador pointed out structural challenges in taxation, governance, and regulatory consistency that continue to limit investor confidence and export competitiveness. She highlighted the importance of ongoing IMF-supported reforms and stressed that sustained implementation is essential for long-term macroeconomic stability. She also noted that Germany, within the European Union framework, closely monitors trade arrangements such as GSP Plus, which are linked to compliance with international conventions on labour rights, human rights, and environmental standards.
Development Cooperation
The ambassador shared that Germany has committed approximately 114 million Euros in development cooperation focused on climate, energy, private sector development, health, and social protection. German technical assistance programmes are increasingly focusing on sustainability, circular economy, and labour compliance across multiple sectors in Pakistan. She concluded by emphasizing the importance of stronger institutional linkages between chambers and business organizations to improve matchmaking, enhance cooperation, and promote joint ventures between Pakistani and German companies, particularly SMEs.
LCCI President's Remarks
Earlier in his welcome address, LCCI President Faheem Ur Rehman Saigol stated that Germany remains Pakistan's largest trading partner in the European Union, with bilateral trade exceeding $2.5 billion. He noted that Pakistan's exports to Germany stand at $1.7 billion, while imports are $880 million, reflecting a stable trade balance in Pakistan's favour. Key exports include textiles, surgical instruments, sports goods, rice, cotton yarn, and footwear, while imports from Germany consist of machinery, pharmaceutical products, chemicals, medical equipment, and iron and steel products. He appreciated Germany's continued support for the GSP Plus framework, which has played a significant role in supporting Pakistan's export growth.
He further stated that there is strong potential for expanding cooperation in automobile manufacturing, renewable energy, engineering, pharmaceuticals, tourism, and SME development. He also emphasized strengthening collaboration with German development and technical agencies, particularly GIZ, which has been actively supporting technical and vocational training and skills development in Pakistan. Saigol underscored Pakistan's commitment to economic diplomacy and regional stability, noting its constructive role in supporting peace and de-escalation efforts in recent geopolitical developments.
