Over 1,000 participants attend as the finance minister highlights macroeconomic stability, reforms, and investment readiness under “Pakistan Means Business”
- Aurangzeb says scenario modelling underway for oil shocks, freight risks, inflation; Panda bond launch planned by mid-May 2026 with ADB, AIIB guarantees
The first High-Level EU–Pakistan Business Forum commenced in Islamabad, bringing together business leaders, investors and policymakers to promote trade, investment and economic cooperation.
The event gathered more than 1,000 participants from Europe and Pakistan, focusing on strengthening commercial ties and supporting sustainable growth.
EU Ambassador Raimundas Karoblis said the forum aims to deepen and diversify trade relations while promoting long-term investment between the two sides.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb highlighted ongoing efforts to strengthen macroeconomic stability and implement structural reforms, underscoring Pakistan’s readiness for investment.
A key development at the forum was the launch of the EU–Pakistan Business Network, bringing together over 300 European companies operating in Pakistan to support policy dialogue and facilitate investment opportunities.
The forum also saw participation from more than 15 Dutch companies, reflecting continued European engagement in Pakistan’s economic landscape. Discussions covered economic outlook, growth prospects, access to finance and responses to global energy challenges.
Outlook and external risks
Separately, Muhammad Aurangzeb said Pakistan is conducting scenario-based modelling to assess the economic impact of oil price shocks, freight disruptions and inflationary risks linked to ongoing Gulf tensions.
He said damage to energy infrastructure in the region is affecting supply chains and pricing, which could add to inflationary pressures, as indicated by the State Bank of Pakistan.
The minister said the government plans to raise external financing through international bonds and commercial borrowing, adding that Pakistan is preparing to launch a Panda bond by mid-May 2026 with guarantees from the Asian Development Bank and Asian Infrastructure Investment Bank.
He said foreign exchange reserves are expected to reach $18 billion by the end of June 2026 despite repayments, including a $3.5 billion bilateral deposit and a $1.4 billion Eurobond maturity.
Aurangzeb said an International Monetary Fund delegation is expected to visit Pakistan by mid-May to finalise key aspects of the upcoming federal budget. He also confirmed that a contributory pension mechanism for the armed forces will be introduced in the 2026–27 budget.
He said the government has established a National Coordination & Management Council to assess secondary and tertiary economic impacts of the Gulf situation and coordinate responses across sectors.
The minister highlighted remittance inflows and Roshan Digital Accounts as key sources of foreign exchange support.
Meanwhile, Raimundas Karoblis said Pakistan would need to formally apply for the next phase of the GSP Plus scheme, adding there would be no automatic extension. He also noted scope for expanding bilateral trade and economic cooperation.
Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan said Pakistan’s economy is positioned to attract foreign investment, while Secretary of the Special Investment Facilitation Council Jehanzeb Khan said exports to the EU reached €12 billion in 2024 and Special Economic Zones are being developed to attract investment.
Reference Link:- https://profit.pakistantoday.com.pk/2026/04/29/eu-pakistan-business-forum-opens-in-islamabad-business-network-launched-with-300-firms/