Germany and Pakistan will work together for the development of a sustainable textile industry across the value chain. Germany is one of the most important trading partners of Pakistan in Europe. It is the fourth largest importer of Pakistani products and the seventh largest supplier of goods to Pakistan. Trade between Pakistan and Germany is conducted in freely convertible currency in terms of the trade agreement signed in 1957.
Germany is a good market for Pakistani textile products especially readymade garments, bed linen cotton fabrics and knitwear. Germany accounts for 20 per cent of Pakistan’s total exports to the EU and 21 per cent of Pakistan’s total imports from the EU. Germany is the eighth largest investor in Pakistan and several German multinationals are operating in Pakistan.
Germany also imports a variety of other products from Pakistan, which include leather clothing, leather gloves, sports goods and surgical instruments, textiles and other products. In turn Germany exports textile machinery, spinning machinery, finishing machinery, knitting and hosiery machinery and weaving machinery to Pakistan.
Germany is also helping Pakistan overcome its energy related issues. German companies are making big investments in Pakistan particularly in the energy sector.