UK-Pakistan Business Council Launched to Strengthen Economic Ties

On July 14, 2025, Pakistan and the United Kingdom established the UK-Pakistan Business Advisory Council to boost trade and investment, announced during the inaugural UK-Pakistan Trade Dialogue in London. This article explores the council’s objectives, its potential to enhance economic ties, and the challenges of ensuring fair market access.

The UK-Pakistan Business Advisory Council, formed during a meeting co-chaired by Pakistan’s Federal Minister of Commerce, Jam Kamal Khan, and UK Minister for Trade Policy and Economic Security, Douglas Alexander, aims to deepen bilateral trade. The council, comprising senior business leaders and government officials, will provide strategic policy advice and address market access barriers. “The UK is a vital economic partner,” Khan said, emphasizing the council’s role in fostering sustainable growth. With bilateral trade reaching £4.7 billion in 2024, up 7.3% from the previous year, the council seeks to capitalize on this momentum, focusing on sectors like healthcare and digital technology. The UK also pledged £200,000 for technical assistance to connect Pakistani investors with UK opportunities.

The initiative leverages the 1.7-million-strong Pakistani diaspora in the UK as a bridge for economic collaboration. Khan highlighted the council’s role in channeling diaspora expertise into trade ventures, particularly in urban development and smart cities. However, conservatives express skepticism about overregulation, warning that heavy-handed policies could stifle small businesses. “We need open markets, not bureaucratic hurdles,” posted @TradeWatchUK on X, reflecting concerns about government overreach. The Pakistan Britain Business Council (PBBC), established in 2002, has long facilitated such ties, and the new council builds on its efforts to promote Pakistan as a secure investment destination.

Despite the optimism, challenges remain. Pakistan’s economic turbulence, with a low Human Capital Index and rapid population growth, demands structural reforms to sustain investment. Critics argue the council must prioritize transparency to prevent elite capture of trade benefits. As the UK and Pakistan commit to annual ministerial dialogues, the council’s success hinges on balancing robust oversight with market freedom to deliver prosperity for both nations.