Mohammad Yasin begins three-day visit to Karachi and Islamabad targeting expanded trade and investment amid headwinds from escalating India-Pakistan tensions.
The UK’s Trade Envoy to Pakistan, Labour MP Mohammad Yasin, has embarked on a pivotal three-day mission to Karachi and Islamabad aimed at strengthening investment links and enhancing economic collaboration between the two nations.
His visit arrives as the UK government rolls out its “Invest 2035” strategy—part of the Growth Mission and Modern Industrial Strategy—designed to offer a decade of policy stability and foster growth in sectors like clean energy, digital innovation, life sciences and advanced manufacturing. With over 200 British companies currently operating in Pakistan—and the top five contributing roughly 1% of Pakistan’s GDP—Yasin characterises Pakistan as a vital partner in UK trade policy.
“The UK and Pakistan already enjoy deep commercial ties, but there is much more we can achieve together,” Yasin told the press. “It is a place close to my heart, and I have seen over many years the enormous potential to help both our countries prosper.”
Yasin’s schedule includes discussions with Commerce Secretary Jawad Paul and Federal Minister for Overseas Pakistanis Chaudhry Salik Hussain, as well as meetings with business leaders to remove trade barriers and open market access. All of this leads up to the launch of a formal UK–Pakistan Trade Dialogue later this year.
UK’s role in Pak’s economic rebalance
According to UK government data, bilateral trade amounted to £4.7 billion during the full year ending December 2024—an increase of 7.3%—with UK exports at £2.2 billion (+10.6%) and imports at £2.5 billion (+4.6%). Despite the healthy growth, trade remains modest: Pakistan ranks only 48th among UK trading partners, comprising 0.3% of total UK trade.
British investment in Pakistan stood at £2.5 billion in outward foreign direct investment at the end of 2023, with Pakistan’s investment in the UK totaling £95 million . The Trade Dialogue aims to boost these figures by facilitating regulatory reform and sectoral partnerships.
Regional turbulence
Yasin’s mission faces headwinds from escalating India-Pakistan tensions. In April, Islamabad closed its airspace to Indian carriers and suspended trade, following Indian strikes in Pakistan. India also suspended the Indus Waters Treaty, which Pakistan described as “an act of war”. Big trade routes through Attari were shut and visa restrictions imposed.
The disruption of India-Pakistan trade—once nearly $3 billion annually—has dropped to $1.2 billion, affecting crucial Pakistani imports of pharmaceuticals and agricultural goods. Pakistan has kept its airspace closed to Indian airlines until late July, undermining transit potential and overflight revenues.
In London, protests by Indian and Pakistani diaspora groups underscored the UK’s delicate balancing act. British Foreign Secretary David Lammy has engaged with India on counter-terrorism and pledged support for the ceasefire reached in May.
Strategic challenges ahead
Analysts suggest the legacy of bilateral disruption may offer the UK a unique opportunity to diversify Pakistan’s trade routes and reduce reliance on regional neighbours. Experts note that Pakistan has increasingly turned to the UAE and Singapore for re-exports in light of India’s curbs. UK investment targeting infrastructure, pharmaceuticals and energy could thus help stabilise essential imports.
Moreover, back-to-back trade agreements—recently with India and now negotiating with Pakistan—highlight London’s mission to balance strategic interests across South Asia.
Looking forward
Yasin’s mission aims to lay groundwork for the trade dialogue set to launch later in 2025. It positions Pakistan as a priority partner in the UK’s global trade strategy and offers Islamabad much-needed engagement amid tensions with its neighbour.
Should the envoy succeed, British firms could secure new roles in Pakistan’s energy, fintech, digital and life sciences sectors. For UK-educated Pakistanis and diaspora communities in Britain, the deal may help galvanise skilled trade, investment and cultural partnership. But success depends on Pakistan’s ability to maintain stability and rebuild regional connectivity with India.
As Yasin travels between Karachi’s ports and Islamabad’s corridors of power, his efforts symbolise renewed cross-regional cooperation—and a UK willingness to broker opportunity amid geopolitical uncertainty.
