Pakistan, Finland to strengthen economic ties

Pakistan and Finland are moving toward a new chapter in economic relations, extending their cooperation across diverse sectors, including investment, IT, renewables, and green finance. Finland's structural reforms in green finance may motivate Pakistani businesspeople to collaborate in strengthening mutual efforts in sustainable finance, economic experts said. They noted that Donald Trump's tariffs have created a window of opportunity for both countries to diversify exports, enhance industrial cooperation, and jointly pursue smart technologies. Experts highlighted Finland's rich expertise in smart technologies, which drive its economy, community, industry, and environment. Closer cooperation with Pakistan would be a valuable addition for its business community and investors. Moreover, Finland's professional supremacy and manufacturing capacity in environmentally friendly technologies—particularly in hydropower, wind energy, and biomass—could play an instrumental role in managing Pakistan's energy deficit. It could also increase the ratio of affordable energy production while reducing carbon emissions. Both countries are exploring cooperation in green economy initiatives, with Finland offering expertise in renewable energy, sustainable forestry, and energy efficiency. These areas could benefit Pakistani businesses in developing a green economy, addressing climate change, and promoting sustainable technologies, said experts. Joint ventures in solar and wind panels, lithium batteries, energy storage, smart electronic appliances, and emerging industries such as quantum computing and artificial intelligence would further drive bilateral trade momentum. Experts also highlighted Finland's strong background in forest economy, which could serve as a non-traditional sector for collaboration. Its diversified skills in energy efficiency could benefit Pakistan's industrial and commercial sectors. Finland's structural reforms in green finance may encourage Pakistani entrepreneurs and the private sector to jointly develop sustainable financial mechanisms that are beneficial for both sides. Additionally, experts stressed the need to simplify visa processes to enhance private sector engagement and foster stronger economic ties. Economic strategist and regional expert Dr Mehmoodul Hassan Khan stated that both Pakistan and Finland are expanding cooperation in various sectors, including investment, technology, IT, renewables, telecommunications, navigation, textiles, health, construction, and social development. He noted that a significant number of Pakistanis are employed in Finland's domestic economy, working in industries such as hospitality and tourism, customer service, IT, healthcare, retail, manufacturing, research and development, airport operations, smart technologies, marine and energy markets, engineering, project management, blockchain, and global supply chains. These workers send substantial remittances that contribute to Pakistan's overall economic development. Khan said, "Pakistan's establishment of the National Compliance Council (NCC) will ensure that local products meet international standards, with higher and vocational education playing a vital role. Additionally, the Vocational Talent Boost Programme, backed by a €1.5 million grant, has created an ideal platform for skills development, with the Special Investment Facilitation Council (SIFC) playing a crucial role. The extended collaboration between Finland's Turku Vocational Institute and NUTECH Pakistan is further boosting educational cooperation." Khan also explained that educational cooperation between the two countries could extend to fields such as artificial intelligence, robotics, health sciences, telecommunications, digitalisation, smart living, satellite communications, community development, and social entrepreneurship. Meanwhile, Pakistan's exports to Finland stood at $31.38 million in FY24, while imports from Finland amounted to $67.66 million in FY23. Pakistan's major exports to Finland include bed and table linen, toilet and kitchen linen, leather apparel and accessories, men's or boys' suits and ensembles, woven fabrics of synthetic staple fibres, men's knitted or crocheted shirts, jackets, gloves, mittens, woven cotton fabrics, and sports and T-shirts.

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