LAHORE: Pakistan and Germany continue to enjoy longstanding friendly and economic relations, but significant untapped potential in trade and investment remains constrained by regulatory unpredictability, complex taxation, lack of transparency, and bureaucratic red tape, German Ambassador Ina Lepel said on Tuesday.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI), the ambassador noted that despite overall stability in bilateral relations, trade volumes have remained relatively stagnant. She said German industries are actively pursuing supply chain diversification, opening new opportunities for partner countries such as Pakistan.
LCCI President Faheemur Rehman Saigol said Germany is Pakistan’s largest trading partner within the European Union, with bilateral trade exceeding $2.5 billion. He added that Pakistan’s exports to Germany stand at around $1.7 billion, while imports are approximately $880 million, reflecting a trade balance currently in Pakistan’s favour.
He highlighted strong potential for cooperation in sectors including automobile manufacturing, renewable energy, engineering, pharmaceuticals, tourism, and small and medium enterprise (SME) development. He also appreciated Germany’s continued support for Pakistan under the GSP+ trade framework, which has contributed significantly to export growth.
The ambassador acknowledged improvements in Pakistan’s infrastructure and macroeconomic indicators but stressed that structural challenges in taxation, governance, and regulatory consistency continue to constrain investor confidence and export competitiveness. She noted that sustained implementation of IMF-supported reforms remains critical for long-term economic stability.
She further stated that Germany, within the European Union framework, closely monitors trade arrangements such as GSP+, which are linked to compliance with international standards on labour rights, human rights, and environmental protection.
Germany has committed approximately €114 million in development cooperation for Pakistan, focusing on climate action, energy, private sector development, health, and social protection.
Ambassador Lepel also appreciated Pakistan’s diplomatic engagement in regional peace efforts and its role in facilitating dialogue in sensitive geopolitical situations.
She underscored the need for stronger institutional linkages between business chambers and trade organizations to enhance cooperation, improve matchmaking, and promote joint ventures between Pakistani and German companies, particularly in the SME sector.
