Japan has expressed interest in exploring new investment avenues in Pakistan, particularly in the automotive and information technology sectors, as it looks to diversify markets amid global trade uncertainties.
In Tokyo, Special Assistant to the Prime Minister on Industries, Haroon Akhtar Khan, and Pakistan’s Ambassador to Japan, Abdul Hameed, held discussions with Matsuo Takehiko, Japan’s Vice Minister for International Affairs at the Ministry of Economy, Trade, and Industry. The meeting focused on strengthening industrial cooperation and expanding bilateral economic engagement.
Officials highlighted Pakistan’s demographic advantage, citing its large youthful population and expanding consumer market. They noted that more than 70 Japanese companies are already operating in Pakistan, demonstrating the country’s potential for further investment. Discussions also touched upon Pakistan’s new industrial policy, which seeks to reduce tariffs, streamline regulations, and promote export-led growth. The initiative aligns with the government’s broader goal of achieving 6–7% annual economic growth through foreign investment and enhanced trade.
The cooperation talks also reflected on global industry trends, particularly Japan’s auto sector’s shift toward biofuels in emerging markets, with Toyota and Suzuki leading innovation in this space. Both sides reviewed Pakistan’s Auto Industry Development Policy, which has transitioned from punitive approaches to incentive-based measures aimed at attracting investment.
In May 2025, Japan’s exports to Pakistan recorded year-on-year growth, largely supported by shipments of hot-rolled iron (¥1.19 billion, up 39.6%), delivery trucks (¥782 million, up 308%), and motor vehicle parts and accessories (¥758 million, up 79.2%).
Further opportunities were explored in Pakistan’s automotive and textile industries, with emphasis on regulatory certainty and biofuel development. Japanese officials stressed the importance of clear investment incentives and standards to facilitate sustainable industrial growth and help boost Japanese automakers’ exports from Pakistan.
GENERAL | Volkswagen and XPeng Extend E/E Architecture to ICE, PHEVs
