Over 40 Swedish companies operating in Pakistan are facing significant challenges, including high tax rates, expensive energy costs, and restrictions on the transfer of foreign currencies, according to Swedish Ambassador Alexandra Berg von Linde. These issues, she stated, are key barriers to increasing foreign investment and improving trade relations.
In a meeting with the Karachi Chamber of Commerce and Industry (KCCI), the ambassador pointed out that many of these Swedish companies, which include globally renowned brands, have been operating in Pakistan for decades. “These companies have contributed to Pakistan’s economic growth and have a deep understanding of the complexities of the local business environment,” she said.
While these businesses acknowledge Pakistan’s investment potential, the ambassador emphasized that addressing these challenges is crucial for creating a more favorable environment for foreign investors.
She also highlighted Sweden’s interest in enhancing collaboration with Pakistan, particularly in sectors such as sustainability, digitalization, and green transitions. “These sectors present a mutually beneficial opportunity for both nations. For Pakistan to remain competitive in the European market, a green transition is essential,” she stated.
Sweden’s role in fostering trade relations through the Swedish Business Council in Pakistan has been vital, according to the ambassador. “The council plays an active role in promoting trade by strengthening business connections and serving as a gateway for Swedish companies looking to enter the Pakistani market,” she explained.
On the topic of the Generalised Scheme of Preferences Plus (GSP Plus), the ambassador responded to remarks made by Senior Vice President of KCCI Ziaul Arfeen. “GSP Plus is a supportive and generous system that encourages economic growth and sustainable development. However, it comes with certain conditions, such as the implementation of international conventions related to human and labor rights, environmental standards, and governance principles. I know that Pakistan is working closely with the European Union to ensure compliance with these regulations,” she remarked.
This year marks the 75th anniversary of diplomatic relations between Sweden and Pakistan, a significant milestone that reflects their enduring partnership. The ambassador reflected on the strong ties, saying, “Over the past 75 years, our relationship has grown based on mutual respect and a shared commitment to economic growth and sustainable development.”