The forum comes at a crucial juncture as Pakistan seeks renewal of its GSP Plus status, which provides preferential access to European markets. Islamabad views the forum as an opportunity to strengthen economic ties and attract much-needed foreign investment
Special Correspondent
ISLAMABAD: The Pakistan–EU Investment Forum is set to be held in Islamabad on Tuesday, April 28, at a time when economic diplomacy is becoming increasingly critical for Pakistan. However, the event is expected to witness a significantly reduced international presence due to recent developments in the country. Initially, around 800 European companies had registered to participate, reflecting strong interest in exploring Pakistan’s market. Yet, less than half are now expected to attend.
A combination of factors has contributed to this decline. The recent shutdown of Islamabad during the US-Iran talks created uncertainty and logistical challenges for foreign participants. Additionally, a sharp rise in international airfares has further discouraged travel, particularly for small and medium-sized enterprises from Europe.
The forum comes at a crucial juncture as Pakistan seeks renewal of its GSP Plus status, which provides preferential access to European markets. Islamabad views the forum as an opportunity to strengthen economic ties and attract much-needed foreign investment. However, recent developments in global trade dynamics have added complexity to these efforts.
The European Union’s recent agreement with India has placed New Delhi in a more advantageous position, raising concerns in Islamabad. Pakistani officials have expressed dissatisfaction, arguing that they deserve similar trade facilitation. European policymakers, however, maintain that comparisons between Pakistan and India are not entirely appropriate, given India’s significantly larger market size and economic capacity.
Compounding these challenges, Pakistan’s exports to European countries have declined in recent months. Analysts attribute this downturn largely to reduced purchasing power within EU economies, partly influenced by the ongoing Gulf crisis and broader global economic pressures.
Despite these hurdles, Pakistani authorities remain hopeful that the forum will still serve as a platform to rebuild investor confidence and reaffirm long-term economic cooperation between Pakistan and the European Union.
