Swedish ambassador highlights challenges and opportunities for investment in Pakistan

KARACHI: On Thursday, Sweden’s ambassador to Pakistan Alexandra Berg von Linde highlighted several challenges faced by Swedish companies operating in Pakistan, including high tax rates, elevated energy prices, and difficulties in transferring foreign currencies.

During a meeting with the Karachi Chamber of Commerce & Industry (KCCI), she shared that more than 40 Swedish companies are currently operating in Pakistan, many of which are well-known brands with a long-standing presence in the country.

“These companies have significantly contributed to Pakistan’s growth and are familiar with the complexities of the local business environment,” said Ambassador von Linde. “While they recognise the investment potential here, addressing these challenges is essential to creating a more favourable environment for foreign investment,” she added.

The ambassador emphasised Sweden’s strong interest in bolstering cooperation with Pakistan, particularly in areas such as sustainability, digitalisation and green transitions, which she noted present a ‘win-win’ opportunity for both nations. “To stay competitive in the EU market, a green transition is essential for Pakistan,” she stressed. She also pointed out the active role played by the Swedish Business Council in Pakistan, which works to strengthen trade relations between the two countries. “It serves as an entry point for Swedish companies looking to enter the Pakistani market,” she said. Responding to remarks on the GSP Plus, Ambassador von Linde stated, “GSP Plus is an open and generous system that promotes economic growth and sustainable development. However, it is clear that there are conditions attached, particularly regarding the implementation of international conventions related to human rights, labour laws, environmental regulations, and governance. I know that Pakistan is working closely with the EU to remain aligned with these GSP requirements.”

The ambassador also celebrated 75 years of diplomatic relations between Sweden and Pakistan, noting that the relationship has evolved over time, based on mutual respect and a commitment to sustainable economic growth.

“We are also proud to see many talented Pakistani students pursuing higher education in Sweden each year,” she said. “These students become excellent ambassadors for our country as they return home, contributing specialised knowledge to local industries or collaborating with Swedish companies on innovative business ventures. This, we believe, is one of the most significant aspects of our partnership.”

Earlier, Senior Vice President of the KCCI Ziaul Arfeen welcomed the Swedish ambassador and expressed satisfaction over the recent 18th Bilateral Political Consultations, where both sides committed to deepening economic cooperation and aligning their interests at multilateral forums, including the UN and the EU.

He also highlighted that the EU remains Pakistan’s largest export market, with exports exceeding $8 billion in FY24. Sweden, he noted, has become an important trading partner for Pakistan, consistently supporting trade growth through the GSP plus framework. “We look forward to Sweden’s continued support in enhancing Pakistan’s exports to the EU, a market with a GDP of around $18 trillion,” he concluded.