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Pakistan and Sweden are preparing for the first round of bilateral investment treaty negotiations in November 2026, aiming to strengthen investment protection, expand business cooperation and attract Swedish investment across key sectors.
Pakistan and Sweden are preparing to begin the first round of bilateral investment treaty (BIT) negotiations in November 2026, as both countries seek to strengthen investment cooperation, improve business conditions and expand economic ties. A Swedish delegation is expected to engage with Pakistani officials during the proposed negotiations.
According to Profit and Daily Times the proposed talks were discussed during a meeting between Federal Minister for Board of Investment (BOI) Qaiser Ahmed Sheikh and Swedish Ambassador to Pakistan Alexandra Berg von Linde on October 9. The discussions focused on modernising the investment treaty, identifying barriers faced by Swedish businesses and creating opportunities for stronger commercial relations.
BOI Director General Abdul Samie reaffirmed the board’s readiness to work with Swedish counterparts to advance the negotiations. Both sides also discussed regulatory and operational challenges affecting Swedish companies operating in Pakistan. The ambassador offered to facilitate meetings between BOI officials and Swedish business representatives to identify investment barriers and explore practical solutions.
During the meeting, Sheikh highlighted opportunities in agriculture, mining and minerals, information technology, digital services, engineering and manufacturing. He encouraged Swedish companies to explore partnerships involving “technology transfer, innovation, modern production methods and sustainable industrial development.”
The minister also outlined incentives available to eligible investors in Pakistan’s Special Economic Zones (SEZs). These include income tax exemptions extending until 2035 and exemptions from import duties and taxes on eligible machinery, subject to applicable conditions. The incentives are intended to attract investment, encourage export-oriented production and support industrial growth.
Sheikh said the government was prioritising value-added exports, industrial development and the removal of investment barriers. He also highlighted improvements in Pakistan’s economic indicators, external-sector position and sovereign credit assessments as part of efforts to strengthen investor confidence.
Ambassador Berg von Linde expressed interest in supporting Pakistan’s transition towards sustainable energy and emphasised the role of small and medium-sized enterprises in expanding bilateral economic cooperation.
She also highlighted the Pakistani diaspora in Sweden and growing interest among Pakistani students in Swedish universities as opportunities for stronger institutional and commercial connections.
Both countries reaffirmed their interest in expanding investment, technology transfer and business-to-business cooperation. The proposed November negotiations could provide an opportunity to review the existing investment framework and address concerns affecting bilateral investment flows.
The initiative reflects a broader effort to translate longstanding diplomatic relations into practical commercial partnerships, potentially opening new opportunities for Swedish businesses in Pakistan and supporting investment-led economic growth.
