Pakistan was removed from the European Union's list of most dangerous countries, a move that was welcomed by the country's Foreign Office.
The decision was announced on Wednesday and was expected to improve conditions for business activity in Pakistan.
Foreign Minister Bilawal Bhutto-Zardari called the removal from the list a "positive step" and said that Pakistani businesses and individuals "would no longer be subjected to Enhanced Customer Due Diligence" by European legal and economic operators.
In a statement announcing the news, Pakistan's Ministry of Commerce said that the removal from the list was a positive development for the country's economy. This move would help to improve the country's business environment and pave the way for more foreign investment.
The high-risk third countries list includes nations that do not have a robust enough regulatory and legal system to prevent financial crimes and terrorism financing, which could pose significant threats to the financial system of the bloc.
Pakistan was added to the list in 2018, which resulted in creating a regulatory burden affecting Pakistani companies doing business with the 27-member bloc.
The European Union's decision to remove Pakistan from the list was a significant step towards improving bilateral trade relations between the two entities. It was hoped that this move would encourage more European companies to invest in Pakistan and help to strengthen the country's economy in the long run.