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Germany Sees Business Opportunity in Pakistan as Firms Seek Supply‑Chain Alternatives

German industry interest in supply‑chain diversification will yield investment only if Pakistan fixes core barriers to doing business.

Overview

  • Ambassador Ina Lepel told the Lahore Chamber of Commerce on Tuesday that Pakistan and Germany have a long friendship but bilateral trade is under‑leveraged and needs fresh momentum.
  • She said German companies are actively looking to diversify supply chains, creating new market openings for Pakistan in areas such as automobile manufacturing, renewable energy, engineering and pharmaceuticals.
  • Lepel identified specific obstacles that deter investors: regulatory unpredictability, complex taxation, lack of transparency and red tape, and she urged continued IMF‑backed reforms for macroeconomic stability.
  • Germany has committed about €114 million in development cooperation focused on climate, energy, private sector development, health and social protection and will keep GSP+ compliance under review.
  • Bilateral trade tops $2.5 billion with Pakistan exporting $1.7 billion to Germany and business leaders say stronger chamber‑to‑chamber links and SME matchmaking are practical next steps to turn interest into jobs and investment.