Pakistan, Germany urged to unlock untapped trade potential

German Ambassador to Pakistan Ina Lepel has called for stronger economic engagement between Pakistan and Germany, urging businesses in both countries to diversify trade, expand investment and deepen business-to-business cooperation.

Speaking at the Pakistan Textile Exporters Association (PTEA), she said German industry was actively seeking to diversify supply chains and establish new global partnerships, creating opportunities for Pakistani businesses to strengthen their presence in international markets.

She acknowledged improvements in Pakistan's infrastructure and certain economic indicators but said structural challenges continued to constrain trade and investment growth.

While progress in infrastructure and energy availability was encouraging, shortcomings in other areas continued to affect investor confidence and export competitiveness, she added.

Lepel said businesses in both countries were increasingly looking to diversify their international partnerships, making closer economic cooperation particularly relevant.

She said German technical assistance programmes were focusing increasingly on sustainability, the circular economy and labour compliance across different sectors in Pakistan.

These initiatives were aimed at improving productivity, working conditions and the competitiveness of Pakistani exports.

"GIZ is working across different sectors of the economy to improve productivity and working conditions, and to enhance the quality and volume of Pakistan's exportable surplus," she said.

The ambassador also highlighted the establishment of a dedicated Pakistan Desk at the German-Emirati Joint Council for Commerce and Industry.

The desk aims to connect German companies with trade, investment and market opportunities in Pakistan, helping businesses explore potential partnerships.

He said Germany remained Pakistan's largest trading partner in the European Union, with bilateral trade exceeding $4.23 billion last year.