UK Pledges Support for Pakistan's Economic Reforms
Britain's development minister, Baroness Jenny Chapman, has affirmed the United Kingdom's support for Pakistan's comprehensive new regulatory overhaul, stating that the initiative could unlock economic gains of nearly £1 billion annually. The announcement was made on Saturday, December 13, 2025, as Pakistan formally launched its reform package designed to reduce bureaucratic hurdles and attract crucial foreign investment.
Speaking at the launch ceremony in Islamabad, attended by Pakistan's Prime Minister Shehbaz Sharif, Baroness Chapman highlighted the UK's collaboration on 472 reform proposals. These reforms are intended to streamline business rules across key sectors, introduce legislative changes, and implement procedural improvements aimed at digitizing documentation and eliminating outdated regulations.
Transforming the Business Landscape
The regulatory overhaul is poised to significantly enhance Pakistan's business environment. Baroness Chapman noted that these reforms are expected to 'break down barriers to investment, eliminate more than 600,000 paper documents, and save over 23,000 hours of labor every year for commercial approvals.' The initial two packages alone are projected to have an economic impact of up to 300 billion Pakistani rupees annually, equivalent to approximately £1 billion.
Prime Minister Shehbaz Sharif described the new regulatory framework as a 'quantum jump' that will reduce corruption, accelerate approvals, and remove long-standing procedural obstacles that have historically deterred businesses. The reforms are part of a broader strategy to transition Pakistan from a regulatory state to a developmental one, focusing on tariff rationalization, regulatory modernization, and export-led industrial growth.
Economic Stabilization and Investment Attraction
The initiative comes as Pakistan aims to shift from economic stabilization to sustained growth, following a period where the country narrowly avoided financial default. Prime Minister Sharif emphasized that the government is now focused on expanding investment and improving productivity in high-potential sectors, including:
- Agriculture
- Information Technology
- Mines and Minerals
The reforms also include the formulation of a Regulatory Governance Strategy 2025–30, the creation of a Pakistan National Legal Registry (PLR), simplification of business bank account opening through the Asaan Business Bank Account (ABA) for SMEs, and a centralized National Business Registry. These measures are designed to build investor confidence and foster a more predictable and competitive economic landscape.
Strengthening UK-Pakistan Partnership
The UK's support underscores a deepening partnership, with bilateral trade between the two nations already exceeding £5.5 billion annually and over 200 British businesses operating in Pakistan. Beyond regulatory reforms, the UK and Pakistan are also collaborating on other key initiatives, including the Pak-UK Education Gateway and a new Green Compact aimed at tackling climate change and promoting green technologies.
This comprehensive support package is expected to play a vital role in Pakistan's efforts to attract foreign direct investment and ensure long-term economic prosperity.
5 Comments
Bermudez
Streamlining processes and digitizing records is a good move for efficiency. But without robust cyber security measures and transparent implementation, these digital systems could create new vulnerabilities or avenues for corruption.
Coccinella
Reducing corruption and streamlining approvals is a massive step forward.
Comandante
The UK's partnership is valuable for expertise and credibility, which is a definite plus. Still, Pakistan needs to develop its own robust oversight mechanisms to ensure these reforms are sustained independently, rather than relying solely on external pressure.
Muchacha
UK's 'support' often comes with strings attached. Be wary of foreign influence.
Comandante
£1 billion is a drop in the ocean for Pakistan's economic problems. Just PR.