Denmark assured of gradual tax reduction

Federal Minister for Commerce Jam Kamal Khan held a meeting with the ambassador of Denmark to discuss ways to enhance bilateral trade, investment cooperation and energy-sector collaboration between the two countries.

During the meeting, the minister highlighted Pakistan's ongoing stabilisation measures under the International Monetary Fund (IMF) loan programme, noting that temporary increases in taxes had created pressure on businesses but were necessary to meet revenue targets. He assured the envoy that the government intends to gradually ease the taxation burden and improve the overall business environment.

Jam Kamal added that profit and dividend repatriation issues had largely been resolved, foreign currency reserves were stabilising and remittances had shown a strong growth. The two sides held in-depth discussion on Pakistan's energy sector, particularly the industrial shift towards solar and renewable solutions that has reduced demand on the national grid.

The Danish ambassador briefed the minister on Denmark's ongoing three-year partnership with Pakistani institutions to support energy planning, data systems and grid efficiency. Both sides agreed that bringing industries back to the grid — or expanding new industrial demand — was essential for long-term sustainability.

The ambassador also shared Danish business interest in Pakistan's agricultural and information technology sectors, noting that some companies remained cautious due to legal and certification constraints.

The minister encouraged Danish firms to explore Pakistan's fast-growing IT talent pool, which produces about 80,000 graduates annually and offers competitive operating costs.

He invited Denmark to participate in upcoming trade exhibitions in Lahore and Karachi, expressing hope that improvements in travel advisories would enable greater participation.

He also spoke about Pakistan's rapidly growing cosmetics and personal care industry, which has recently gained traction in African markets due to competitive pricing and expanding product variety.