ISLAMABAD: Ambassador of European Union (EU) in Pakistan Lars-Gunnar Wigemark has stressed that Pakistan needs to strengthen trade and business relations with its neighbours.

“It is highly encouraging that the current government is working on this issue and it is expected that with these initiatives the economic activities will boost up in near future,” he said during his visit to Islamabad Stock Exchange Limited (ISE) here on Tuesday.

Mr Wigemark is heading a delegation of EU which includes Husnain A. Iftikhar, senior economist/trade officer.

He gave an overview on the role of EU in Pakistan and said European companies were planning to start some projects in the country’s transport, energy and agriculture sectors.

“We are working to increase trade and exchanging technology not only inside the EU, but also to non-EU countries, and Pakistan is a beneficiary of this policy,” Mr Wigemark said.

The two sides discussed the impact on Pakistan’s economy after the granting of GSP Plus status by EU to the country.

The delegation was briefed on the performance of the capital market and the ISE.

ISE members praised the contribution of EU in the growth of Pakistan’s economy.

ISE Managing Director Mian Ayyaz Afzal said that due to GSP Plus status Pakistani products would have duty-free access to European markets and there would be a substantial increase in the national exports, especially those of textile and garments.

“We expect the textile sector will witness a tremendous growth and it would benefit the stock markets too as textile sector companies comprise over 20 per cent of the total listed companies in Pakistan,” he added.