Pakistan–EU cooperation vital for innovation-driven, sustainable growth: Musadik Malik

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 29th Apr, 2026) Federal Minister for Climate Change and Environmental Coordination Musadik Malik on Wednesday said that enhanced cooperation between Pakistan and the European Union was essential to drive innovation-led, sustainable economic growth and long-term wealth creation.

Addressing the Pakistan–EU Business Forum 2026, the minister underscored that partnerships between Pakistan and Europe were not only vital for trade but also for fostering an “innovation ecology” capable of delivering sustained productivity and shared prosperity.

He said that while short-term productivity could be achieved through technology, long-term and sustainable growth depended on building strong systems of innovation. “At the heart of wealth creation lies productivity, but sustainable productivity only comes from a system of innovation,” he remarked.

Highlighting the significance of Pakistan’s ties with Europe, the minister said the EU remained one of Pakistan’s largest trading partners and a key source of knowledge, innovation and institutional strength. He appreciated the role of EU Ambassador Androulla Kaminara and European diplomats in strengthening bilateral relations.

Musadik Malik noted that forums like the Pakistan–EU Business Forum played a critical role in bringing together businesses, technologies and ideas, enabling the exchange of tacit knowledge and fostering new business models. “When cultures and technologies meet, new ways of thinking emerge, and innovative ideas find their place in global value chains,” he added.

Emphasizing sustainability as a cornerstone of future growth, the minister said unchecked exploitation of resources could lead to short-lived economic gains, whereas responsible and balanced use of resources ensured long-term prosperity. He termed Europe a global leader in climate responsibility and environmental governance.

Referring to evolving EU regulatory frameworks such as the Carbon Border Adjustment Mechanism (CBAM) and green policies, he said these measures posed both challenges and opportunities for Pakistan.

However, he welcomed the European Union’s commitment to support Pakistani businesses, particularly small and medium enterprises (SMEs), in meeting these standards.

He noted that the EU’s financial support, including a €20 million framework, would help Pakistani SMEs undertake carbon audits, adopt green certifications, and enhance innovation capacity. “This demonstrates that our partners are not only setting standards but also enabling us to meet them,” he observed.

The minister said such initiatives could lead to the emergence of new industrial clusters and innovation-driven businesses, drawing parallels with countries like Finland, which transformed its economy through strong environmental standards and innovation ecosystems.

Highlighting Pakistan’s vulnerability to climate change, Musadik Malik said the country had faced devastating impacts including loss of lives, injuries, displacement of millions, and disruption of education. He stressed that these challenges also presented opportunities for innovation.

“Any solution developed to address Pakistan’s complex climate challenges has the potential to become a globally exportable model,” he said, adding that collaboration with international partners could help transform local solutions into global success stories.

He also highlighted the importance of youth and SMEs in driving future economic transformation, noting that emerging global trends such as artificial intelligence, electrification, biotechnology and nanotechnology were reshaping economies worldwide.

The minister appreciated the Forum's focus on SMEs and youth engagement, terming it a “great beginning” for building partnerships that could unlock new avenues of growth and innovation.

Concluding his remarks, Musadik Malik reaffirmed Pakistan’s commitment to strengthening ties with the European Union and welcomed international partners to invest, collaborate and contribute to a sustainable and innovation-driven future.