Envoys of European countries, including the Ambassador of Italy to Pakistan, Marilina Armellin, and the Ambassador of Denmark to Pakistan, Maja Mortensen, called on the Federal Minister for Commerce, Jam Kamal Khan, to discuss avenues for enhancing bilateral trade, investment, and economic cooperation.

During the meeting, the minister highlighted Pakistan’s role as a responsible global partner, emphasising its efforts in promoting dialogue and de-escalation in times of geopolitical tensions, read an official statement on Wednesday.

He noted that recent global developments, particularly disruptions in key maritime routes such as the Strait of Hormuz, have significantly impacted global supply chains, including energy, food, medicines, and industrial inputs.

These challenges, he stated, underline the importance of diversified trade partnerships and resilient supply systems.

Jam Kamal underscored Pakistan’s strong economic potential, citing its large consumer base, abundant natural resources, and strategic location. He remarked that with improvements in per capita income, Pakistan could emerge as a major import and consumption hub, creating significant opportunities for foreign investors.

Both envoys acknowledged these prospects and expressed keen interest in expanding engagement, particularly in non-traditional sectors.

A detailed discussion was held on Pakistan’s ongoing tariff reforms under the National Tariff Policy, which aims to gradually reduce tariffs over five years to promote export-led growth and enhance competitiveness.

The minister emphasised that Pakistan is among the few countries currently pursuing progressive tariff reduction, while many countries, due to prevailing global economic uncertainties and protectionist trends, are increasing tariffs.

He noted that tariffs have already been reduced in several sectors and will continue to decline in the coming years, ensuring a balanced approach that protects local industry while facilitating imports of high-quality inputs.

Specific concerns regarding tariff classification, particularly in the dairy sector, were also discussed, with the minister assuring that the government is open to reviewing proposals, including the creation of new HS codes where required.

The discussion also focused on the transformation of Pakistan’s dairy sector, which holds immense untapped potential.

The Danish side highlighted innovative projects aimed at reducing waste, particularly whey byproducts, and converting them into value-added products such as protein drinks and bars.

The minister welcomed such initiatives, emphasising the importance of technology transfer, investment, and capacity building to modernise the sector. He noted that with proper support, Pakistan can significantly enhance productivity and move towards a more formalised and efficient dairy industry.

Investment climate and intellectual property protection were also discussed in detail.

The envoys raised concerns regarding proposed amendments to the intellectual property framework, particularly in the pharmaceutical sector.

Jam Kamal assured that Pakistan remains committed to international IP standards and will ensure that no policy measure undermines investor confidence. He reiterated the government’s focus on strengthening enforcement mechanisms and providing a predictable and business-friendly environment for foreign investors.

The minister further highlighted emerging export opportunities, particularly in the livestock and meat sectors, where Pakistan has witnessed increased demand from regional markets due to supply disruptions. He stressed the need to strengthen the formal sector, improve quality standards, and enhance export readiness to fully capitalise on these opportunities.