UK Reaffirms Trade Commitment to Pakistan
The United Kingdom has confirmed that Pakistan will continue to benefit from preferential trade access under its new Developing Countries Trading Scheme (DCTS) — the UK’s post-Brexit replacement for the European Union’s GSP+ program.
This announcement came during the recent visit of UK Trade Envoy Mohammad Yasin, who wrapped up a three-day mission in Pakistan focused on enhancing bilateral business ties.
“The UK is not in favour of protectionism. We support global and regional supply chains,” said Yasin.
What This Means for Pakistani Exporters
For Pakistani exporters, this is a significant reassurance. Under the DCTS, many Pakistani products can enter the UK market with reduced or zero tariffs, keeping them competitive and cost-effective. Key export sectors that will continue to benefit include:
Textiles and garments
Leather and footwear
Agriculture and food products
Surgical instruments and sports goods
This preferential access supports thousands of jobs and contributes billions in annual exports, making the UK one of Pakistan’s top five export destinations.
Brexit Didn’t Close Doors — It Opened New Ones
Following Brexit, the UK designed the DCTS to retain and even expand trade benefits for developing countries. Yasin reaffirmed that Pakistan’s access would continue uninterrupted and that the UK was committed to simplifying trade procedures and reducing non-tariff barriers.
This includes improving technical support, addressing export certification concerns, and working on sectoral challenges ,particularly around pharmaceutical pricing and intellectual property rights, which UK companies have flagged.
A Two-Way Street: Investment Flows Both Ways
Yasin’s message wasn’t just about exports. He called on Pakistani businesses to explore investment opportunities in the UK under its new industrial strategy, which targets eight high-growth sectors, including:
Information Technology
Agriculture and food processing
Clean energy
Advanced manufacturing
Mining and mineral extraction
“The UK is a haven for companies to invest in. We’re inviting international companies, and we want Pakistanis to take part,” said Yasin.
UK Eyes Investment in Pakistan — But Needs Confidence
While the UK is open for investment, British companies also want to invest in Pakistan, especially in sectors like tech and mining. A UK company recently secured a £53 million contract in mineral extraction, and consulting firm McKinsey is advising the Pakistani government on the mining sector’s regulatory framework.
But there’s a caveat: investor confidence depends on stability.
“Security and stability are key factors. If investors don’t feel safe, they simply don’t invest,” Yasin warned.
Consistency, Not Just Optimism
Yasin acknowledged that Pakistan is doing better than it was two years ago, both politically and economically. However, he stressed that policy consistency, especially in alignment with IMF reforms, is vital to maintain progress.
He pointed to Pakistan’s young population and growing base of women entrepreneurs as national assets, but emphasized the need for stronger supply chains, intellectual property protection, and ease of doing business to truly unlock Pakistan’s potential.
Trade Dialogue Ahead: Breaking Down Barriers
To move things forward, a UK-Pakistan ministerial trade dialogue will be held soon in London. The agenda will focus on:
Removing non-tariff barriers
Strengthening investment frameworks
Supporting SMEs and exporters
Expanding bilateral trade beyond the current £4.7 billion
Both countries believe the trade volume can increase substantially by 2035, provided the right structures and trust are in place.
Final Take for Businesses
✅ Exporters: Your access to the UK is secure and may expand.
✅ Investors: The UK is open for Pakistani businesses, but Pakistan must provide the right climate.
✅ Policy Makers: Sustained stability, legal reforms, and ease of doing business are crucial.
This is a pivotal moment to deepen trade ties between Pakistan and the UK. The framework exists — now it’s about building confidence on both sides.
