Pakistan Sweden BIT Talks Open Door to New Investment

ISLAMABAD – (Staff Reporter/News Desk) – The Pakistan Sweden BIT took centre stage when Federal Minister for Board of Investment Qaiser Ahmed Sheikh met Swedish Ambassador Alexandra Berg von Linde. The government has decided to withdraw its notice to end the 1981 treaty.

The two sides talked about stronger trade, more investment and new chances for Swedish firms. Senior BOI officials, including Director General Abdul Samie and Asif Khan, also joined the meeting.

The Minister welcomed the Ambassador and spoke warmly of the old ties between the two countries. He praised Sweden for its strength in education, technology, good governance and new ideas. He said these ties should now turn into real investment and business partnerships.

The Ambassador thanked the Minister for his time. She pointed to the active Pakistani community in Sweden. She also said more Pakistani students now choose Sweden for higher studies, which brings the two peoples closer.

More than 40 Swedish companies already work in Pakistan. These include Ericsson, IKEA, H&M and Tetra Pak. The Minister said Pakistan offers a big home market, a young population and a useful location for investors.

He said Pakistan needs more productive investment, stronger industry and higher exports. He added that the government is removing hurdles for investors. He also noted better economic indicators and improved credit ratings, including from Moody’s.

The Minister named agriculture, mining, IT, digital services, engineering and manufacturing as good sectors for Swedish investors. He asked Swedish firms to bring modern methods and technology to these areas.

He also explained the benefits in Pakistan’s Special Economic Zones. Eligible investors can get income tax relief up to 2035. They can also get relief on import duties and taxes on eligible machinery, subject to conditions.

The Ambassador said Swedish companies speak through the Swedish Business Council. She offered to arrange meetings with company heads so they can share their real problems and ideas. She raised one example of a tax gap between packaged milk and loose milk. She also said Sweden wants to help Pakistan with its energy transition and to support small and medium businesses.

The Pakistan Sweden BIT was the key topic. The Minister said Pakistan has cancelled its notice of termination. A new committee is also reviewing the country’s whole BIT framework, including the model treaty. The aim is to make future deals modern and fair.

The Ambassador said any review or new talks must involve the relevant European Union bodies. Both sides agreed to keep talking and to understand each other’s legal rules.

Director General Abdul Samie said BOI is ready to work closely with Sweden. He stressed the need to find the real problems that investors face on the ground.

A Zoom meeting is planned for next week. It will brief the Swedish side on Pakistan’s approach, the committee’s role and the policy review. The first round of treaty talks is expected in November 2026, with a Swedish team visiting Pakistan.

The Minister also spoke about the BOI’s Business Facilitation Centre. This one-window service helps investors with registrations, licences and approvals.

Education was another area of interest. The Minister mentioned FAST-NU in his hometown, Chiniot, and invited the Ambassador to visit. He said universities in both countries could work together on exchanges and research.

The meeting ended with a shared wish for steady dialogue. Both sides hope for closer work on the treaty, investment help, clean energy, technology and education.