Pakistan, UK hold first ministerial development talk in 8 years as bilateral trade crosses £5.5b

Federal Minister for Finance Muhammad Aurangzeb and the United Kingdom’s Minister for Development, Baroness Chapman, held the first federal-level Pakistan–UK development talks in eight years on Wednesday, discussing economic cooperation and Pakistan’s structural reform agenda.

The meeting was also attended by British High Commissioner Jane Marriott. Chapman’s visit comes at a time when UK–Pakistan bilateral trade has crossed £5.5 billion for the first time, with more than 200 British companies currently operating in Pakistan. Officials said the revival of ministerial-level dialogue underscores renewed momentum in economic engagement between the two countries.

During the meeting, both sides reviewed Pakistan’s ongoing reform efforts, broader development priorities, and avenues for enhanced cooperation in trade, investment and climate resilience.

Earlier in the day, Baroness Chapman, alongside Education Minister Khalid Maqbool Siddiqui, inaugurated the next phase of the Pak-UK Education Gateway — a British Council–Higher Education Commission initiative aimed at strengthening academic collaboration on climate change and economic growth challenges.

The new phase includes a start-up fund to support commercialisation of research and seeks to expand access to UK university programmes for Pakistani students through distance-learning pathways.

Aurangzeb appreciated the UK’s support at the IMF, which contributed to the completion of Pakistan’s programme reviews. He highlighted the government’s progress in macroeconomic stabilisation and structural reforms across taxation, energy, state-owned enterprises, public finance management, and privatisation.

He detailed work on energy sector efficiencies, debt management, public-sector right-sizing, pension reform, and measures aimed at restoring fiscal sustainability while creating space for social sector priorities.

Both sides discussed Pakistan’s devolved governance structure and the need for federal-provincial coordination to strengthen investment in health, education, population management, and climate resilience. The discussion also covered women’s economic participation, demographic challenges, and policy options for family planning and social protection.

Chapman also met with Prime Minister Shehbaz Sharif to launch regulatory reforms aimed at improving Pakistan’s business environment.

With Climate Change Minister Musadik Malik, Chapman launched a new Green Compact establishing a framework for UK-Pakistan collaboration on tackling climate change, protecting nature, and advancing green technologies.

“Pakistan is a crucial partner for the UK. We work together to tackle the drivers behind organised crime and illegal migration, keeping both our countries safer,” Chapman said. “We remain firm friends of Pakistan, including in times of crisis, as shown through our flood response,” she added.

Both sides committed to strengthening the long-standing partnership and agreed to work closely on shared development priorities, including enhanced high-level exchanges and private sector collaboration.