Pakistan

In 2024, Pakistan's Gross Domestic Product (GDP) reached approximately USD 374.6 billion, reflecting a growth rate of 10.99% compared to the previous year – a sign of improved resilience and expansion across several sectors. The inflation rate stood at 23.4% in 2024, but a significant decrease to 9.5% is forecast for 2025, thanks to the proactive monetary policies of the State Bank of Pakistan.

The country’s economy is diversified, with agriculture contributing 23.17%, industry 18.41%, and the services sector 58.42% to the GDP. Key industries include textiles, garments, food processing, pharmaceuticals, surgical instruments, and information technology.

Foreign direct investment (FDI) also showed positive momentum, reaching USD 1.523 billion between July 2024 and January 2025 – reflecting growing investor confidence in Pakistan’s economic recovery.

(Quelle: GTAI – Wirtschaftsdaten kompakt Pakistan, December 2024)

Germany and Pakistan maintain strong economic relations characterized by active trade. In the first half of 2024, German exports to Pakistan amounted to €400.1 million, while imports from Pakistan to Germany reached €1.1859 billion. Germany’s main exports to Pakistan include machinery and technology, accounting for 32.4% of total exports in 2023, followed by chemical products at 23.5%.

On the import side, textiles and garments dominate, making up an impressive 85.4% of all goods imported from Pakistan in 2023. Pakistan significantly benefits from its status as the largest beneficiary of the European Union’s Generalized Scheme of Preferences Plus (GSP+), an autonomous trade preference program for vulnerable developing countries. This program grants full removal of tariffs on over 66% of product categories for exports to the EU.

German Companies Discover Promising Business Opportunities in Pakistan

German companies find promising business opportunities in Pakistan, particularly in sectors undergoing significant modernization. In the manufacturing industry—especially the textile sector—there is strong potential for German technologies and machinery to enhance process efficiency and expand production capacities. Agriculture and, more specifically, food processing are also key areas of modernization, where German expertise in automated and efficient processing technologies is in high demand to improve the quality and export potential of agricultural products.

Another dynamic sector is IT and technology, including the startup ecosystem. Germany can leverage its strengths in digitalization and technological innovation to foster partnerships in one of South Asia’s fastest-growing tech markets. Increasing digitalization presents broad opportunities in areas such as fintech, e-commerce, and artificial intelligence, driven by a young, tech-savvy population and rising internet penetration.

Despite the Pakistani market’s price sensitivity, the “Made in Germany” label enjoys a strong reputation and gives German products and services a competitive edge. This positive perception can be used to highlight quality and reliability in a highly competitive environment, enabling German companies to successfully position themselves within Pakistan’s modernization wave and to tap into new business fields in an emerging market.

Pakistan’s economic landscape is increasingly shaped by digital transformation and the rapid growth of e-commerce. With 142 million internet users and a dynamic rise in social media engagement, online trade is expanding swiftly—supported by initiatives such as the Digital Pakistan Policy and the Pakistan Single Window (PSW), which facilitate cross-border trade and reduce business costs. These developments offer extensive opportunities in technology-driven sectors.

In the energy sector, the government is actively promoting projects in solar and wind energy to diversify power supply and enhance sustainability. Major initiatives like the China-Pakistan Economic Corridor (CPEC) are improving infrastructure and connectivity, boosting the development of trade, logistics, and industrial expansion, and creating a wide range of business opportunities in these areas.