Islamabad (Pakistan News): Sweden has welcomed the resumption of negotiations with Pakistan to update their nearly 45-year-old bilateral investment treaty in line with current requirements. According to Pakistani officials, the first round of talks will be held in Islamabad on November 17 and 18.
Speaking at the launch of the Sweden-Pakistan Business Leaders Book 2026-28, Swedish Ambassador Alexandra Berg von Linde said Sweden looks forward to resuming negotiations with Pakistan to modernize the investment treaty.
The development comes after Pakistan served notice to terminate the 1981 investment treaty. The Pakistani government is reviewing existing investment agreements to avoid potentially large financial losses resulting from international arbitration.
The government has established an investment ombudsman to resolve investment-related disputes, while a model investment treaty has also been approved. Officials are seeking to use the same model in future agreements with various countries.
According to a government official, the first round of negotiations between Pakistan and Sweden will take place in November. Pakistan is also negotiating an investment treaty with Hungary, and efforts are underway to finalize agreements with both countries soon.
The Swedish ambassador urged Pakistan to continue taking steps to fulfill its international obligations under the European Union’s preferential trade regime. She is the second European ambassador in the past three weeks to remind Pakistan of the need to comply with these obligations.
Earlier, EU Ambassador Raimundas Karoblis said in Lahore that Pakistan would need to demonstrate progress in implementing relevant laws and international agreements to retain or obtain preferential trade status in the future.
He also urged exporters to increase cooperation with the government to address European concerns regarding human and labor rights, governance, and the environment.
According to Federal Secretary of Commerce Jawad Paul, Pakistan has successfully completed the fifth review under the European Union’s preferential trade regime and is preparing to formally reapply for the new scheme. He said compliance with international obligations would enable Pakistan to transition smoothly to the new European trade framework.
The European Union’s latest review report stated that Pakistan would need to reverse negative trends observed between 2023 and 2025 to secure future trade preferences and fulfill its international obligations. The report expressed concerns regarding enforced disappearances, minority rights, media and freedom of expression, peaceful assembly, and implementation of international human rights agreements.