Dutch capital for key sectors sought

Envoy eyes agri, IT & textile ventures as economy shifts to export-led growth

ISLAMABAD:

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday urged the Netherlands to expand trade and investment cooperation with Pakistan, saying the economy had moved from crisis management to reform-driven stability.

According to an official statement, he made the remarks during a meeting with Robert-Jan Siegert, the new Ambassador of the Kingdom of the Netherlands to Pakistan, at the Finance Division.

Welcoming the envoy, the minister praised the Netherlands for its long-standing partnership with Pakistan in development, trade and private sector-led initiatives. He said Pakistan, after undergoing a difficult period of macroeconomic adjustment, was now focused on attracting investment and strengthening structural reforms.

Aurangzeb said the country's economic fundamentals had improved over the past two years, with all three major global rating agencies upgrading Pakistan's outlook. He briefed the ambassador on progress under the International Monetary Fund (IMF) programme, adding that the Fund had expressed confidence in Pakistan's reform trajectory, particularly in taxation, energy-sector stabilisation, governance of state-owned enterprises (SOEs) and the ongoing privatisation process.

The minister said the government had eased restrictions on the repatriation of profits and dividends, restoring confidence among foreign investors. He added that Pakistan was now shifting from consumption-led growth to investment- and export-led expansion to end the recurring boom-and-bust cycles of the past.

Aurangzeb noted that investors from the Gulf Cooperation Council (GCC), Europe, the United States and China were showing consistent interest in key sectors such as minerals, mining, agriculture, information technology, infrastructure and pharmaceuticals. He emphasised that the government aimed to attract sustainable inflows through trade and investment rather than external loans or bilateral deposits.

Highlighting fiscal reforms, the minister said the government was broadening the tax base, reducing informality and ensuring fair taxation across sectors including retail, real estate and agriculture. He said digitalisation of revenue processes through AI-based monitoring systems was helping curb leakages.

He also informed the envoy about progress on SOE reforms, right-sizing of federal entities and privatisation of select institutions, pointing to the recent successful divestment of a financial institution and upcoming transactions involving power distribution companies.

Referring to the Netherlands' export-led economic model, Aurangzeb said Pakistan's industries must become more competitive to capture global markets. He added that the government had begun phasing out additional customs duties over the next few years to dismantle long-standing protectionism and promote industrial efficiency.

Ambassador Siegert reaffirmed his country's commitment to expanding economic and investment ties with Pakistan. He said about 50 Dutch companies were already operating in the country and expressed interest in exploring new opportunities in agriculture, IT, textiles and other sectors where the Netherlands has strong expertise. He also underlined the role of FMO, a Dutch development finance institution, in supporting future investments in Pakistan.

The envoy appreciated Pakistan's proactive engagement on the European Union's Generalised Scheme of Preferences Plus (GSP+) and expressed hope for continued cooperation as the new GSP+ cycle approaches.

Aurangzeb reaffirmed Pakistan's commitment to meeting its reform and compliance obligations and assured continued engagement with the EU and its member states, including the Netherlands, on GSP+ matters. Both sides agreed to deepen bilateral economic, trade and investment cooperation.

Separately, Jean Todt, the United Nations Secretary-General's Special Envoy for Road Safety, called on the finance minister at the ministry.

Todt, who is visiting Islamabad to attend the Regional Transport Ministers' Conference, discussed the heavy human and economic toll of road accidents, which claim more than a million lives annually worldwide. He said investment in safer roads, vehicles and mobility systems was both a public-health and economic priority.

Aurangzeb praised Todt's global advocacy for road safety and said Pakistan viewed road and climate safety as interconnected priorities under its sustainable-development framework. He reaffirmed the government's commitment to improving transport safety standards and reducing long-term social and fiscal costs.

Both sides agreed to continue collaboration on safe, sustainable and inclusive mobility initiatives.