Switzerland-Pakistan relations in a nutshell

H.E.Mr.Guy Parmelin Swiss President

Switzerland established diplomatic relations with Pakistan in 1949, which have always been cordial and constructive.

The 10th round of the bilateral Political Dialogue between the two countries was held in Bern in February 2018.

Swiss Investments in Pakistan

Over the past 10 years Switzerland has been one of the top 5 foreign direct investors in Pakistan. The investments by the Swiss companies in Pakistan has exceeded USD 1 billion.

Presently, 23 Swiss companies are operating successfully in Pakistan in all major sectors. Most of these companies are located in Karachi and Lahore.

Trade

In the calendar year 2019, the bilateral aggregated trade volume was around USD 545 million. Traditionally, the balance of trade has been in favour of Switzerland. In 2019, Swiss exports to Pakistan amounted to approx. USD 378 million while the exports of Pakistan to Switzerland were recorded at approx. USD 169 million.

In the last 5 years, there was an average annual growth of 7.5% in the bilateral trade.

Though major Swiss companies are operating in Pakistan, there is room for improvement in bilateral trade between the two countries.

Trade from Switzerland to Pakistan 2019

Pharmaceuticals 46%

Machinery 21%

Dyeing Extracts and Colours 9%

Watches 6%

Trade from Pakistan to Switzerland 2019

Textiles 74%

Agro Products 6%

Swiss Business Council

Established in 2008 in Karachi, the Swiss Business Council (SBC) unites 53 companies operating in Pakistan either as a local subsidiary or a partner of a Swiss company.

Together with Switzerland Global Enterprise (S-GE), which is an umbrella organization in Switzerland to promote exports of the Swiss SMEs, SBC aims to improve trade and business linkages between the two countries. SBC also facilitates fact-finding missions of Swiss SME’s to visit Pakistan to explore the potential for investment and trade.

Education

Switzerland, being one of the most innovative countries, has been offering Swiss Government Excellence Scholarships in order to contribute towards the innovation and skill development of the Pakistani youth. These scholarships are offered in the disciplines of research after masters, PhD, and Post Doc in the public universities of Switzerland. Since the start of this prestigious scholarship program in 2012, over 30 students from Pakistan have been to Switzerland to pursue higher education in their field of research.

Development and Humanitarian Aid

From 1963 to 2017, Switzerland has almost contributed 680 million Swiss Francs (roughly equivalent to USD 680 million) through bilateral development cooperation with Pakistan.

After the closure of the operational activities of the Swiss Agency for Development and Cooperation (SDC) in Pakistan by the end of 2019, Swiss development assistance is continuing through Sectorial/Global Programs and Multilateral Institutions.

Currently, Switzerland is funding 1.5 million Swiss francs (equivalent to $1.5 million) to support disaster risk management activities in Pakistan in cooperation with Asian Development Bank.

The Embassy of Switzerland is also active through its small action projects in supporting communities by improving infrastructure, such as flood protection walls, clean & safe drinking water and irrigation projects.

During the Covid-19 crisis, Switzerland continued its support. In July 2020, the Embassy of Switzerland donated 2,000 personal protective equipment (PPE) suits to the administration of Pakistan Institute of Medical Sciences (PIMS).

Copyright Business Recorder, 2021