Pakistan, Sweden set for BIT talks in November

Pakistan and Sweden are set to begin negotiations in November to review and update their decades-old Bilateral Investment Treaty (BIT), as Islamabad seeks stronger safeguards against financial risks arising from international arbitration.

Swedish Ambassador Alexandra Berg von Linde said Sweden was looking forward to restarting discussions on the investment treaty. She made the remarks at the launch of the Sweden-Pakistan Business Guide 2026-28.

According to a Pakistani government official, the first round of negotiations is scheduled for November 17 and 18 in Islamabad. Pakistan is also holding discussions with Hungary on a new investment treaty and hopes to reach agreements with both countries.

Pakistan recently moved to terminate its 1981 investment treaty with Sweden as part of a broader effort to review its existing investment agreements. The government wants to revise the treaties to reduce the risk of large financial liabilities resulting from international arbitration cases.

As part of the reforms, Islamabad has appointed an investment ombudsman to help resolve disputes. It has also approved a new model investment treaty that is expected to serve as a framework for negotiations with partner countries.

The Swedish ambassador also stressed the importance of Pakistan meeting its international commitments under the European Union’s Generalised Scheme of Preferences Plus (GSP+) programme.

She called for continued progress on the commitments linked to the trade scheme. Her comments came shortly after similar concerns were raised by another European diplomat.

EU Ambassador Raimundas Karoblis recently said Pakistan would need to demonstrate progress in implementing laws and international conventions to qualify for the next phase of GSP+ benefits.

He urged Pakistani exporters to prepare for the new requirements and engage with the government on issues raised by the European Commission. These include human and labour rights, governance, environmental protection and other international obligations.

Federal Commerce Secretary Jawad Paul said Pakistan had completed its fifth review under the existing GSP+ arrangement. He said preparations were also underway for the country’s formal reapplication under the new framework.

The European Union’s latest GSP+ monitoring assessment has highlighted concerns over Pakistan’s implementation of several human rights commitments. It called for action on issues including enforced disappearances, minority rights, media freedom, freedom of expression and peaceful assembly.

The EU also raised concerns about the continued lack of accountability for human rights violations. It called for stronger measures to address negative developments and reviewed the need for changes to laws relating to blasphemy, cybercrime, defamation, counterterrorism and sedition.

The European Commission’s new GSP framework will take effect from January 1, 2027 and remain in place until the end of 2036. The scheme will offer reduced or zero tariffs on imports from 65 developing countries.

The revised framework will place greater emphasis on human and labour rights, environmental standards, climate commitments and good governance. It will also introduce stronger monitoring and transparency mechanisms.

The new rules will expand the number of international conventions linked to trade preferences. They will also allow the EU to suspend benefits in cases involving serious and systemic violations of the principles covered by those conventions