LAHORE: German Ambassador Ina Lepel has said that Pakistan and Germany share long-standing friendly and economic relations, but significant untapped potential remains in trade diversification, investment expansion and business-to-business cooperation.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI), she acknowledged improvements in Pakistan’s infrastructure and certain economic indicators. However, she noted that challenges such as regulatory unpredictability, a complex tax regime, lack of transparency and red tape continue to constrain trade and investment growth. She added that bilateral trade, while stable, has remained below its potential.
Lepel also highlighted the importance of ongoing IMF-backed reforms, saying their sustained implementation is essential for long-term macroeconomic stability. She noted that Germany closely monitors trade arrangements such as the Generalised Scheme of Preferences Plus (GSP+), which is linked to compliance with international conventions on labour rights, human rights and environmental standards.
The ambassador said German industry is actively seeking to diversify supply chains and establish new global partnerships, creating fresh opportunities for countries such as Pakistan. She added that this shift is encouraging greater engagement with emerging markets.
She also commended Pakistan’s diplomatic efforts to promote regional peace and acknowledged its role in facilitating dialogue and de-escalation in sensitive geopolitical situations.Speaking on the occasion, the LCCI president said Germany remains Pakistan’s largest trading partner within the EU, with bilateral trade exceeding $2.5 billion.
