Pakistan-Australia investment treaty likely by December

Speaking at the Lahore Chamber of Commerce & Industry (LCCI), Kane said the existing investment treaty, signed in 1998, required an update to reflect the

LAHORE: Australia and Pakistan are moving towards a modernised Bilateral Investment Treaty, with Australian High Commissioner Timothy Kane expressing confidence that negotiations could be completed by December this year, potentially opening the door to increased Australian investment in Pakistan.

Speaking at the Lahore Chamber of Commerce & Industry (LCCI), Kane said the existing investment treaty, signed in 1998, required an update to reflect the evolving economic conditions and investment needs of both countries. He said a modernised agreement would provide a positive signal to Australian businesses considering investment opportunities in Pakistan.

LCCI President Faheem Ur Rehman Saigol welcomed the Australian envoy and stressed the need to expand economic relations between the two countries. He noted that Pakistan and Australia had maintained friendly relations since 1947 and said Pakistan could benefit from Australia’s expertise in agriculture, mining, education, technology and economic management.

Saigol pointed out that bilateral merchandise trade had fallen from $973 million in 2024-25 to $672 million in 2025-26. Pakistan’s exports to Australia slipped from $285 million to $275 million, while imports declined from $688 million to $397 million. He called for concerted efforts to reverse the downward trend and proposed increasing bilateral trade to at least $3 billion.

He said Pakistani exports to Australia currently include home textiles, apparel, rice, surgical instruments and sports goods, while several other sectors, including engineering products, auto parts, leather goods, spices, specialty foods, pink salt, marble, furniture and carpets, offered considerable potential.

The LCCI president also called for the early revival of the Pakistan-Australia Joint Trade Committee, which has not met since March 2023. He advocated exploring a preferential trade arrangement, arguing that Pakistani exporters face disadvantages because competing countries have better or duty-free access to the Australian market.

Mining and minerals were identified as another promising area for cooperation. Saigol said Pakistan possessed significant mineral resources, while Australia could contribute advanced expertise in exploration, mining technology, mineral processing and resource management.

He also highlighted opportunities in education, vocational training, research and digital skills. According to him, Pakistan’s expanding IT workforce and Australia’s advanced technology market could support cooperation in software development, business-process services, artificial intelligence and cybersecurity.

Kane said both countries needed to make greater efforts to strengthen their commercial relationship. Referring to the Joint Trade Committee meeting held in Canberra last August, he said market access for Pakistani mangoes and improved facilities for pre-export inspection were among the issues discussed.

Agriculture, he said, remained one of the strongest pillars of bilateral cooperation. Australian agricultural trade with Pakistan was worth almost one billion Australian dollars last year, while the Australian Centre for International Agricultural Research has worked in Pakistan for more than four decades and invested nearly $100 million in agricultural research and innovation.

Australia is also supporting Pakistan in improving water management, developing better seeds and introducing drought-resistant varieties suited to changing climatic conditions. An Australian agricultural delegation visiting Lahore is also scheduled to travel to Faisalabad.

Livestock and dairy development have emerged as another area of cooperation. Kane said more than 100,000 Australian cattle had been exported to Pakistan, with Punjab receiving the majority. He said Australian cattle genetics could help improve milk production and strengthen local livestock herds.

A Pakistani delegation is expected to visit Australia next month to explore cooperation in pulses, including varieties more suitable for Pakistan’s climate. Kane also said Australia was supporting Pakistan in strengthening its biosecurity system and welcomed opportunities for further cooperation.

He added that Australia was preparing to export genetically modified canola to Pakistan after the country approved GMO canola, while Australia had previously supplied Pakistan with non-GMO varieties.

Kane stressed that the bilateral relationship needed to benefit both sides and said Australia wanted to see stronger Pakistani exports and investment in its own market. He noted that a leading Pakistani apparel company was exploring opportunities in Australia, where Pakistani clothing products could benefit from the country’s diverse and multicultural consumer base.

The envoy also identified mining, pharmaceuticals and biotechnology as sectors with potential for future investment and collaboration. He said Pakistan had considerable expertise in pharmaceuticals and could work with Australian partners to explore new markets and develop cooperation in biotechnology.

Education remains another major component of Pakistan-Australia relations. Kane said the number of Pakistani students in Australia had reached around 20,000 before declining somewhat over the past 18 months to two years.

On business visas, the High Commissioner said Australia’s visa system was non-discriminatory and encouraged genuine business visitors with clear appointments and well-defined purposes to follow the required procedures and provide complete information.

He also praised the contribution of Pakistani professionals in Australia, particularly engineers, accountants and IT specialists. The Pakistani community in Australia has grown to around 145,000 people over the past decade, while remittances from Australia to Pakistan exceeded $1 billion last year.

Kane said there were currently no plans for a free trade agreement between the two countries. However, he described recent trade committee discussions as encouraging and said Australia remained committed to taking Pakistan-Australia economic relations towards a stronger and more productive phase.

The meeting was attended by LCCI officials, including Director Trade and Education Azhar Shah, PIEDMC Chairman Major (retd) Javed Iqbal and Executive Committee members Amir Ali, Nadeem Ansari and Karamat Ali Awan.