Pakistan, UK discuss potential free trade agreement

KARACHI (Web Desk) - Pakistan and the United Kingdom discussed the possibility of a future free trade agreement during high-level talks in Islamabad on Thursday, as both sides sought to deepen economic ties and expand cooperation across key sectors.

The meeting between Commerce Minister Jam Kamal Khan and Britain’s Director General Political Edward Llewellyn comes as Pakistan looks to boost exports and attract foreign investment through structural reforms, while navigating global trade disruptions linked to rising tensions in the Middle East and increased shipping risks through the Strait of Hormuz.

“The ongoing trade dialogue could serve as a strong foundation for future cooperation,” the commerce ministry said in a statement, citing remarks made during the meeting.

“Both countries should consider moving toward a Free Trade Agreement (FTA) in the longer term,” he added, calling it “a natural progression of the growing economic partnership between Pakistan and the United Kingdom.”

Both sides reviewed progress under the Pakistan-UK Trade Dialogue and agreed to activate working groups in sectors including IT, agriculture, professional services, education and skills, as well as health care and life sciences.

Pakistan said it was continuing tariff and regulatory reforms to improve its business environment and attract investment.

The UK side emphasized the need for transparency and consultation in policymaking, noting that clear signals from the government were key to reassuring international investors.

Officials also discussed risks to global trade from instability in the Gulf region, including rising shipping costs and disruptions linked to the Strait of Hormuz, with Pakistan raising concerns over increased maritime charges affecting its exports.

Both sides agreed to maintain close coordination and continue dialogue on trade, energy and regional stability.