Pakistan and Denmark have entered into a new phase of bilateral cooperation with the launch of a three-year energy partnership aimed at advancing grid efficiency, strengthening data systems, and improving long-term energy planning. The initiative was announced during a high-level meeting in Islamabad, where officials highlighted the growing need for modernized grid solutions as Pakistan’s industrial sector increasingly transitions toward renewable energy sources.
The partnership arrives at a time when Pakistan’s industries are rapidly adopting solar and other off-grid renewable systems to manage rising electricity costs. This shift has eased pressure on the national grid but has also transformed traditional revenue models for the energy sector, presenting new challenges for planners and regulators. Danish officials noted that the collaboration will help Pakistan develop systems and insights needed to manage this evolving landscape, particularly in integrating variable renewable energy back into mainstream grid operations.
Federal Minister for Commerce Jam Kamal Khan met with Denmark’s Ambassador to Pakistan to discuss these developments, acknowledging that the industrial shift toward solar has significantly reduced demand on the national grid. Both sides agreed that restoring industrial confidence in grid reliability or creating new, sustainable industrial demand will be vital for long-term economic and energy stability.
The discussion also touched on broader economic measures currently underway in Pakistan. The minister shared that taxation steps implemented under the IMF program have temporarily created pressure on businesses but emphasized that the government aims to gradually ease this burden as fiscal stability improves. He added that foreign exchange reserves are stabilizing and that remittances have shown encouraging growth patterns. According to officials, concerns around profit repatriation for foreign firms have also been largely addressed.
Danish companies have shown interest in exploring opportunities in Pakistan’s agriculture and IT sectors, though some firms remain cautious due to certification and regulatory requirements. The ambassador noted that consistent policy support and streamlined processes could help attract greater Danish participation. The minister highlighted that Pakistan produces nearly 80,000 IT graduates annually and offers competitive operational costs compared to other regional markets, positioning the country as an emerging destination for technology investment.
Pakistan’s cosmetics and personal care manufacturing segment was also discussed, as it has been gaining traction in African markets due to competitive pricing and diversified product offerings. The minister encouraged Danish firms to join upcoming trade exhibitions in Lahore and Karachi to explore potential partnerships.
Both countries expressed a shared commitment to strengthening commercial links, enhancing business-to-business engagement, and expanding collaboration in trade, renewable energy, technology development, and market expansion initiatives. Officials noted that improvements in travel advisories could further support increased participation from Danish businesses in Pakistan.
As Pakistan navigates its energy transition and industrial rebalancing, the new partnership with Denmark is expected to provide valuable expertise and strategic direction, especially in shaping a more efficient and adaptable national grid.
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