Pakistan and Denmark have agreed to maintain the positive momentum in their bilateral cooperation, with a focus on economic, developmental and environmental partnerships.

The understanding was reached during a meeting between Finance Minister Muhammad Aurangzeb and Denmark’s newly appointed Ambassador to Pakistan, Maja Mortensen, in Islamabad on Tuesday.

Aurangzeb reaffirmed the government’s commitment to deepening ties with Denmark, especially in trade, investment, energy cooperation and sustainable development.

He said the government is working to create a more enabling environment for foreign investors, acknowledging the difficulties some companies had faced in the past.

He added that Pakistan has cleared its outstanding foreign payment backlog and continues to move in a positive direction on fiscal and monetary stabilisation.

The minister was briefed on Denmark’s major wastewater treatment project in Faisalabad, being executed in partnership with WASA.

The six-year initiative includes a long-term engagement model to ensure sustainability and effective knowledge transfer.

Ambassador Mortensen said the arrival of three Danish delegations in Pakistan this week reflects the growing engagement between the two countries.

She noted strong commercial interest from Danish companies in sectors such as logistics, maritime infrastructure, manufacturing and energy, adding that several firms are keen to expand operations in Pakistan.

She also highlighted Denmark’s government-to-government cooperation program in the energy sector, supported by the Danish Energy Agency, which focuses on energy modelling, infrastructure planning, grid efficiency and capacity building.

Mortensen expressed interest in working with the Danish Business Club in Pakistan and plans to visit Lahore and Karachi in the coming weeks to meet industry leaders and further strengthen commercial ties.