The economic reform policy that had been initiated before the crisis was intensified after General Musharraf had assumed power in 1999. After a few years the economic reforms, privatizations and liberalization of trade started to bear fruit, and the economy as well as the external trade is now growing rapidly. Today, the trade between Sweden and Pakistan has by far surpassed the pre-crisis level.
The value of Swedish export to Pakistan is approx. USD 200 million in 2005 and the Pakistani export to Sweden amounts to USD 80 million. It should also be mentioned that Swedish international chain-stores buy Pakistani goods for approx. USD 150 million that is exported to other markets than Sweden.
Major Swedish export sectors are paper and pulp, telecommunication equipment, machinery, trucks, chemicals, metals and defense equipment. Swedish multinational companies like Ericsson, Saab, Tetrapak, Volvo, ABB and Alfa Laval dominate the Swedish exports. Pakistan exports to Sweden consist mainly of textile, garments, leather and sports goods. Ikea, H&M and Lindex are major buyers of textile products and have their own offices in Pakistan.
The following Swedish companies have made direct investments in Pakistan: Tetrapak, Millicom, Saab and GAC.
Sweden and Pakistan have concluded agreements on mutual protection of investments (1981) and avoidance of double taxation (1986).
As a member of the European Union (EU) since 1995, Sweden adheres to the common trade policy established by the EU.
The Swedish Embassy in Islamabad is active in promoting Swedish exports to Pakistan. Information about Swedish exports can be found in the Swedish Export Directory at www.sed.swedishtrade.se
The promotion of Pakistani exports in Sweden is carried out by the Trade Counsellor at the Embassy of Pakistan in Stockholm. The corresponding promotion of Swedish trade interests is carried out by the Economic and Commercial Counsellor at the Swedish Embassy in Islamabad.
Inquiries regarding export to Sweden should be directed to the Pakistan Embassy in Stockholm. Useful information and assistance for exporters to Sweden can be found at:
> www.cci.sean overview of the Swedish market – how it works, its business culture, trade regulations, general information about Sweden, useful addresses, etc.
> www.chambertrade.com a meeting point where business contacts and cooperation partners can be found. Foreign exporters can register their offers in a data base to get in contact with prospective Swedish business partners
> www.cci.se market reports with specific information about the Swedish market for various product groups
> www.opentradegate.se provides exports in developing countries with information about trade rules and regulations for the Swedish and EU market. Services are free of charge