ISLAMABAD: A key subject of the meeting between Federal Minister for Board of Investment Qaiser Ahmed Sheikh and Alexandra Berg von Linde, Ambassador of Sweden to Pakistan, was the Pakistan–Sweden Bilateral Investment Treaty (BIT), signed in 1981.
The minister informed the Ambassador that the Government of Pakistan has decided to revoke the notice of termination of the treaty, reaffirming its commitment to maintaining constructive investment relations with Sweden. He explained that the government has constituted a committee to review Pakistan’s overall BIT framework and develop a clear policy approach, including a review of the Model BIT template, to ensure that future investment agreements are modern, balanced and aligned with contemporary international practices.
The ambassador highlighted that the review and renegotiation of the existing BIT would require engagement with the relevant European Union mandate and institutions, given the implications for other EU member states. She noted that the process could have wider significance for how European partners approach investment treaty negotiations with Pakistan.
Both sides recognised the importance of continued consultation. Director General Abdul Samie welcomed Sweden’s interest in engaging on the BIT review and reiterated BOI’s readiness to work closely with Swedish counterparts. A virtual meeting via Zoom is proposed for next week to brief the Swedish side on Pakistan’s approach to bilateral investment treaties and the mandate of the BIT Committee. Both sides also discussed the proposed commencement of the first round of BIT negotiations in November 2026, with a Swedish delegation expected to engage with Pakistani counterparts.
The meeting, attended by senior BOI officials including Director General Abdul Samie and Asif Khan, also focused on strengthening bilateral economic relations and enhancing investment cooperation. Welcoming the Swedish Ambassador, the Federal Minister underscored the longstanding and friendly relations between Pakistan and Sweden and acknowledged Sweden’s strengths in education, governance, technology and innovation.
The meeting noted the presence of more than 40 Swedish companies in Pakistan, including Ericsson, IKEA, H&M and Tetra Pak, representing ICT, retail, consumer goods and packaging. The Minister emphasised that Pakistan’s large domestic market, young population and strategic location offered considerable opportunities for international investors. He identified agriculture, mining and minerals, information technology, digital services, engineering and manufacturing as promising areas for Swedish investment, particularly where Swedish expertise could support technology transfer and sustainable industrial development.
Briefing the Ambassador on Pakistan’s Special Economic Zones (SEZs), the Minister outlined incentives including income-tax exemptions up to 2035 and exemptions on import duties on eligible machinery. He also highlighted improvements in economic indicators and sovereign credit assessments, including by Moody’s, as positive developments for investor confidence.
The Ambassador expressed Sweden’s interest in supporting Pakistan’s energy transition and highlighted the role of SMEs in strengthening economic cooperation. She suggested direct engagement with Swedish companies through the Swedish Business Council to identify regulatory challenges, citing taxation issues in specific industries as an example. She also offered to facilitate meetings for company representatives to share operational experiences.
The minister referred to the Business Facilitation Centre (BFC) as a one-window platform to help investors with registrations and approvals, and reiterated BOI’s commitment to resolving bottlenecks. Education was also identified as an area of cooperation, with the Minister inviting collaboration between Pakistani and Swedish universities.
The meeting concluded with a shared understanding on sustained dialogue, BIT review, investment facilitation, energy transition, technology and education. The Board of Investment reaffirmed its commitment to facilitating foreign investment and building lasting partnerships with Swedish companies.
