Pakistan, Canada to expedite efforts to conclude FIPPA

ISLAMABAD: Pakistan and Canada agreed on Monday to accelerate investment cooperation in critical minerals, renewable energy and infrastructure, with Ottawa signalling greater engagement in sectors Islamabad sees as vital for economic revival. The understanding was reached during talks between Deputy Prime Minister and Foreign Minister Ishaq Dar and visiting Canadian Foreign Minister Anita Anand, as the two countries sought to open a new chapter in bilateral relations through expanded trade, investment and economic cooperation. The two sides agreed to fast-track negotiations for a Foreign Investment Protection and Promotion Agreement (FIPPA), which they said would help provide greater certainty to investors and strengthen commercial ties. READ MORE: Canadian FM due today According to a joint statement issued after the meeting, Pakistan and Canada welcomed progress made towards the agreement and committed to continuing negotiations with the aim of concluding it at the earliest. They also agreed to revive the Pakistan-Canada Joint Working Group on Trade and Investment, providing a dedicated platform to expand economic cooperation, facilitates business engagement and identify new opportunities for partnerships between companies of the two countries. Anand, who was visiting Pakistan for the first time since assuming office, held a one-on-one meeting with Dar before participating in wider discussions on bilateral relations, regional developments and issues of mutual interest. The talks focused heavily on opportunities for increased Canadian investment in Pakistan, particularly in clean energy, mining and critical minerals, infrastructure, agriculture, emerging technologies and environmental sustainability. Both sides emphasised that trade and investment would remain key drivers of economic growth and resilience, encouraging stronger business-to-business engagement and welcoming greater exchanges between business delegations to unlock the potential of bilateral economic relations. A key development highlighted during the visit was the approval of the 240-megawatt Dhabeji Hybrid Wind-Solar Project, a joint venture between Canadian company JCM Power and K-Electric. The project, which has secured the required regulatory approvals, is expected to contribute to Pakistan’s renewable energy supply and support efforts to diversify the country’s energy mix. Pakistan and Canada agreed to encourage further investment in renewable energy projects, including solar, wind and battery storage technologies, as part of broader efforts to improve energy security and reduce dependence on conventional energy sources. Agriculture emerged as another important area of cooperation, with the two countries signing a new protocol establishing predictable phytosanitary import conditions for Canadian canola. The agreement is expected to facilitate agricultural trade while both sides agreed to expand cooperation in food safety, agricultural technology and value-added food chains. Pakistan and Canada also welcomed opportunities for increased trade in agricultural products, including canola, oilseeds, lentils, soybeans, cereals, rice, spices and fruit. The two countries further agreed to strengthen cooperation in the mining sector, with Canada recognising Pakistan’s mineral potential and offering expertise in responsible mining practices. The two sides agreed to promote collaboration across the mining value chain, including exploration, related services and sustainable mining practices, amid growing global demand for critical minerals. Anand invited Dar to attend the 2027 Prospectors and Developers Association of Canada conference, one of the world’s leading mining industry events, to further strengthen engagement between the two countries’ mining sectors. During discussions on regional issues, Dar briefed the Canadian minister on Pakistan’s diplomatic efforts regarding an ongoing regional conflict. The Canadian minister appreciated Pakistan’s role, which contributed to the Islamabad Memorandum of Understanding, while both sides underlined the importance of achieving a sustainable ceasefire and ensuring implementation of commitments under the agreement. The two ministers also discussed developments in Afghanistan, the continuing threat of terrorism and wider regional security challenges. They agreed to further strengthen cooperation in counterterrorism and efforts to combat transnational organised crime. Canada announced continued support for Pakistan’s counterterrorism initiatives through projects involving the United Nations, Interpol and other international organisations. The two countries also highlighted the importance of people-to-people connections, noting the contribution of more than 300, 000 Pakistanis and people of Pakistani origin living in Canada, as well as over 9, 000 Pakistani students enrolled in Canadian educational institutions. They agreed to promote cultural exchanges, tourism, academic cooperation, improved mobility opportunities and parliamentary engagement to further deepen relations between the two societies. Climate change and poverty-related challenges also featured in the discussions, with Canada announcing development assistance projects focused on education, climate resilience and healthcare. At the conclusion of the talks, Pakistan and Canada said their relationship had entered “a new era of opportunity” and agreed to maintain sustained high-level engagement, including annual reviews of progress in bilateral cooperation. The two sides expressed the hope that enhanced economic cooperation would translate political goodwill into concrete investment, trade and development outcomes. Meanwhile, Pakistan and Canada moved to revive economic engagement, with both sides identifying agriculture, minerals, energy and manufacturing as priority areas as Islamabad seeks greater foreign investment and expanded trade links. During a meeting with Prime Minister Shehbaz Sharif, Canadian Foreign Minister Anita Anand said Ottawa was looking to open new avenues of cooperation with Pakistan, while the two countries agreed to pursue business and technical exchanges in trade and minerals. The discussions covered potential collaboration in agri-foods, renewable energy, mining, vaccine manufacturing, automobiles and auto parts – sectors officials hope could translate diplomatic goodwill into stronger commercial ties. Prime Minister Shehbaz said Pakistan-Canada relations had significant room for expansion, particularly in trade and investment, and highlighted the role of the Pakistani community in Canada in strengthening bilateral links. He also conveyed greetings for Canadian Prime Minister Mark Carney and said he looked forward to meeting him, recalling his April conversation with the Canadian leader and thanking Ottawa for supporting Pakistan’s regional peace efforts. Anand, who is visiting Pakistan on Carney’s instructions, highlighted the proposed Foreign Investment Promotion and Protection Agreement (FIPPA), which she said could help provide greater confidence to investors exploring opportunities in Pakistan. A tangible outcome of the talks came with the signing of a protocol allowing the import of Canadian canola into Pakistan under agreed phytosanitary standards. The agreement was signed by Deputy Prime Minister Ishaq Dar and Foreign Minister Anand in the presence of the Prime Minister. Both sides also agreed to send business and technical delegations to advance cooperation in trade and minerals. Federal Minister for National Food Security Rana Tanveer and senior officials from both countries attended the meeting. Copyright Business Recorder, 2026

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