HAFEEZ SHAIKH DELIVERS KEYNOTE ADDRESS AT PAKISTAN BUSINESS DAY BERLIN

Islamabad, SEPTEMBER 23, 2003

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation said that the structural reforms and stabilization of economic policies being followed by Pakistan had achieved impressive progress on the macro economic front, says a message received here today from Berlin. He was delivering his keynote address as head of a Pakistani delegation at the second Pakistan Business Day organized by Deutsch-Pakistanisches Forum (DPF) and Pakistan Embassy in collaboration with various German business groups and organizations, Pakistan-German Business Forum (PGBF), Karachi and Pakistan's Board of Investment (BOI) in the framework of the fourth Asia Pacific Week Berlin.

He said that the economic exchange and the industrial cooperation were the key to economic growth in the present world order. Pakistan during the last three and a half years under the leadership of President Gen. Pervez Musharaf and the present government of Prime Minister Zafarullah Jamali had worked hard to make the country pro-private sector by developing conducive investment policies, he added.

In view of our friendly relations the economic & trade interaction need to be accelerated in the presence of the existing potential in both the countries, he said. The Minister gave an overview of the economic progress achieved by Pakistan through macro economic stabilization, consistency in economic policies and economy oriented reforms and stated that the foreign exchange reserves had touched the ever highest figure of over US $ 11billion giving enough room and confidence for upgrading the country's credit rating to BB. Pakistan's exports had gone beyond US $ 11 billion last year with a reduction of external debt by US $ 1 billion, the record remittances of US $ 4.3 billion were made by the overseas Pakistanis last year and 65 % record jump increase through Foreign Direct Investment (FDI) touched the figure of US $ 800 million during the fiscal year 2002-2003, he added.

Dr. Abdul Hafeez Shaikh further said that the revenue collection had shown an increase of 14 %, GDP growth to 5.1 % and inflation around 3 %, which resulted due to consistency in over economic policies being pursued during the past four years. The Minister also presented the key features of Pakistan's Investment and Privatisation Policies and invited German companies to invest in Information Technology, Telecom, Power, Water Resources Management/ Dams, Housing & Construction, Education, Health, Oil & Gas and tourism.

The investment opportunities allowed 100 % equity to foreign and local investors in all the sectors and that too without any restriction to takeout their dividends, he said. The Minister apprised the participants of the facilitating role of BOI and assured full support and cooperation to the business group for establishing their businesses in Pakistan as well as to assist in finding suitable local partners for joint ventures.

He said that the holding of Pakistan Business Day at Berlin would prove to be a landmark in the growth of Pak-German economic interaction in the private sector. It has offered business opportunities to German Businessmen and experts, provide opportunities for contact between Pakistani and German Businessmen and it would further facilitate business partnership/ joint ventures between the two sides.

The German companies expressed their keen interest in Hydel and Coal Energy, Renewable Energies, Water Resources Management/ Dams, Information Technology, Telecom and Textile sectors. The Forum accepting the Minister's invitation decided that a Business Delegation from Germany will visit Pakistan very soon to identify more investment opportunities and to accelerate the pace of economic interaction between both the countries.

A Memorandum of Understanding (MOU) between Pakistan German Business Forum (PGBF) and its counterpart in Germany Deutsche-Pakistan Forum (DPF) was also signed in this regard for promoting the investment, trade and business relations with Pakistan.

In his opening remarks Dr. Alfred Tacke, Secretary of the German Ministry of Economy and Labour while highlighting the stabilization policies pursued by the Government of Pakistan during the past four years hoped that these policies would continue in future. Referring to Pakistan's Afghan Policy the German Minister expected that Pakistan would continue as an active partner in Afghanistan's reconstruction. He desired that the issues arose from investment protection and avoidance of double taxation agreements would soon be resolved. He emphasized the German investors and the Business Groups to make investments in Pakistan and hoped for further strengthening of Pakistan-German bilateral relations.

A member of the Pakistan delegation Mr. Tariq Ikram, Minister of State and  Chairman Exports Promotion Bureau (EPB) while making a presentation on potential and opportunities of Pakistan's exports and sharing the strategy being adopted by Pakistan to enhance its exports, invited the German Businessmen to increase their imports from Pakistan stating that Pakistani products merit both on price and quality. In four sessions of the Pakistan Business Day Pakistan's role in Afghanistan's reconstruction, status of textile exports after elimination of quotas, political and economic expectations from forthcoming SAARC Summit, the development of Human Capital and transport infrastructure with specific reference to regional transport infrastructure also came under discussion. The German investors who have already invested in Pakistan shared their success stories with the participants. A large number of the high profile Business Executives of various German and Pakistani companies and overseas Pakistanis living in Germany participated in this event.