Pakistan, UK Sign Landmark Trade Dialogue Mechanism Agreement

ISLAMABAD — Pakistan and the United Kingdom on Monday formally signed the “Trade Dialogue Mechanism Agreement,” establishing an institutional framework to strengthen bilateral economic cooperation, explore trade opportunities, and increase investment.

Federal Minister for Commerce Jam Kamal Khan and British Minister of State for Trade Policy and Economic Security Douglas Alexander signed the agreement in Islamabad.

According to the Ministry of Commerce, this is the first high-level trade pact approved by Pakistan’s Cabinet under the current government—a milestone expected to usher in a new era of structured, sustained dialogue between the two countries.

The agreement aims to institutionalize economic cooperation through the creation of joint working groups, regular review meetings, and targeted collaboration in high-potential sectors.

Priority areas for cooperation include digital trade, renewable energy, agriculture, pharmaceuticals, and IT services. Both sides have also committed to identifying and removing trade barriers while expanding bilateral investment opportunities.

Officials said the Trade Dialogue Mechanism is designed to pave the way for new markets, generate employment, and promote sustainable development in both countries.

Pakistan has specifically highlighted its IT, agri-tech, and pharmaceutical sectors as key export growth areas under the agreement. The arrangement is also expected to facilitate Pakistan’s access to the UK’s Developing Countries Trade Scheme (DCTS), which offers preferential trade terms to eligible partners.

Government representatives from both sides hailed the agreement as a historic milestone that will lay the foundation for a deeper and more dynamic economic partnership.

By creating an institutional platform for dialogue and cooperation, the agreement is expected to improve transparency, enhance market access, and support long-term trade and investment planning.

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