KARACHI: The Ambassador of Sweden, Ms. Alexandra Berg von Linde, highlighted the challenges that Swedish companies face in Pakistan, including high tax rates, when discussing Sweden-Pakistan trade and investment relations.
In a recent meeting with the Karachi Chamber of Commerce & Industry (KCCI), the Ambassador noted that over 40 Swedish companies operate in Pakistan. These include many well-known Swedish brands that have been part of the Pakistani market for decades. However, despite their long-standing presence, Swedish companies are encountering difficulties, particularly due to Pakistan’s high tax rates, rising energy prices, and challenges in transferring foreign currencies.
“These companies have supported Pakistan’s growth and are well-acquainted with the complexities of the local business climate,” said Ambassador von Linde. “While they see the potential for investment here, addressing these challenges is crucial to creating a more conducive environment for foreign investment,” she added. She made these remarks during a meeting attended by Honorary Consul General of Sweden Dr. Zeelaf Munir, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, and other KCCI members.
The Ambassador emphasized Sweden’s commitment to enhancing cooperation with Pakistan, particularly in areas of sustainability, digitalization, and green transitions. “These sectors offer a win-win opportunity for both countries,” she stated. “For Pakistan to stay competitive and relevant in the EU market, a green transition is essential.” She also mentioned that Sweden’s Business Council in Pakistan is actively working to promote trade between the two nations, serving as an entry point for Swedish companies interested in the Pakistani market.
Discussing the GSP Plus scheme, the Swedish Envoy highlighted its benefits, calling it an open and generous system that supports economic growth and sustainable development. “At the same time, we all know that there are conditions attached to the GSP system in terms of the implementation of international conventions—whether it is about human or labor rights, environmental regulations, or governance principles,” she explained. “Pakistan is working closely with the European Union to stay aligned with the GSP regulations.”
Ambassador von Linde also noted that 2024 marks 75 years of diplomatic relations between Sweden and Pakistan. Over these years, the relationship has evolved based on mutual respect, with a focus on economic growth and sustainable development. She took pride in the number of Pakistani students traveling to Sweden for higher education, contributing to the development of both countries through specialized knowledge and collaboration with Swedish businesses.
Earlier, Senior Vice President of KCCI Zia ul Arfeen welcomed the Swedish Ambassador and expressed satisfaction over the recent 18th Bilateral Political Consultations. He emphasized Sweden’s role as a significant trading partner for Pakistan, particularly through the GSP Plus framework. He noted that Sweden has consistently supported Pakistan’s growth in trade with the EU, and encouraged further collaboration, particularly in sectors such as textiles, agriculture, renewable energy, healthcare, and IT.
Arfeen stressed that Pakistan’s trade volume with Sweden is lower than its full potential and urged both countries to enhance their economic integration through increased investment and collaboration in key sectors. He also suggested more people-to-people exchanges, trade delegations, and participation in exhibitions to boost trade relations.
