ISLAMABAD: The upcoming UK-Pakistan Trade Dialogue will prioritise reducing non-tariff barriers (NTBs) to enhance bilateral trade, British trade envoy to Pakistan Mohammad Yasin said.
“We’re launching the UK-Pakistan Trade Dialogue — a structured ministerial platform focused on reducing non-tariff barriers through practical cooperation, technical support, and regulatory alignment,” he said in a written interview with Dawn.
He expressed the hope that the dialogue would help accelerate progress in strengthening trade ties between the two countries.
Mr Yasin visited Pakistan last week to lay the groundwork for the trade dialogue, which is set to begin later this year. During his visit, he held meetings focused on investment opportunities, regulatory cooperation, and enhancing business-to-business linkages, particularly in high-value sectors such as technology and pharmaceuticals.
British envoy hopes upcoming dialogue will help accelerate progress in strengthening bilateral ties
The dialogue aims to unlock the full potential of the bilateral trade relationship, which currently stands at £4.7 billion. It is intended to address persistent challenges in the business environment, diversify Pakistan’s export base, and improve market access to sectors beyond traditional textiles, including clean energy, digital services, and value-added manufacturing.
Key NTBs hampering Pakistan-UK trade include stringent UK technical standards, especially in textiles and pharmaceuticals, that many Pakistani small- and medium-sized enterprises (SMEs) struggle to meet due to the high costs of certifications. Additional barriers include sanitary and phytosanitary measures complicating agricultural exports, complex post-Brexit customs procedures leading to delays, and growing UK consumer demands for sustainably and ethically sourced products.
On Pakistan’s end, inefficient export procedures and infrastructure bottlenecks further impede trade. While Pakistani products enjoy duty-free access under the UK’s Developing Countries Trading Scheme, these non-tariff obstacles continue to limit growth, particularly in high-value sectors, preventing businesses from fully benefiting from the scheme.
Commenting on the prospects of a free trade agreement (FTA), Mr Yasin said: “While FTAs require significant resources and time, this dialogue allows us to make faster, targeted progress on the issues that matter most to exporters to support growth. This work complements both countries’ economic priorities.”
There is currently no bilateral FTA between Pakistan and the UK. However, officials view the trade dialogue as a pragmatic step toward aligning standards and facilitating smoother market entry, potentially laying the foundation for a future agreement.
Mr Yasin also emphasised the UK’s commitment to supporting Pakistani SMEs, particularly in the tech sector. “We’re working through the UK’s REMIT programme to improve the business environment, enhance access to finance, and support digital transformation,” he said.
While noting that Pakistan’s tech and digital services sectors are among the most dynamic in its economy, the envoy said that the UK “wants to see more Pakistani tech companies use the UK as a springboard to access wider European and global markets”.
He highlighted the role of British development finance institutions in this effort. British International Investment is actively investing in Pakistan’s digital infrastructure and promoting financial inclusion, while UK Export Finance supports Pakistani firms seeking to expand exports or partner with the UK companies.
The UK is leveraging its development finance tools, Mr Yasin said, to help Pakistani firms expand their exports or partner with the UK companies.
Mr Yasin, however, parried questions about the impact of the China-Pakistan Economic Corridor on UK-Pakistan trade and how the UK navigates geopolitical considerations while advancing economic cooperation with Pakistan.
Published in Dawn, July 1st, 2025
