HAFEEZ SHAIKH EMPHASIZES TO EXPLOIT PAK GERMAN POTENTIAL AREAS FOR PROMOTION OF TRADE & INVESTMENT

Islamabad, March 5, 2004

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation said that the structural reforms, stabilization and the continuity of economic policies being followed by the Government had achieved impressive progress on the macro economic front. He stated this during a meeting with the Ambassador of the Federal Republic of Germany Dr. Christoph Brummer, who met him here today.

He said that Pakistan during the last four years under the leadership of President Gen. Pervez Musharraf and the present government of Prime Minister Zafarullah Jamali had worked hard to make the country pro-private sector by developing conducive investment policies and in view of Pakistan German friendly relations the economic & trade interaction needed to be accelerated and further improved through exploiting the potential areas in IT, Telecom, Energy, Oil & Gas, Pharmaceuticals, Textiles, Agro based industries, Social sectors, Petro-Chemicals, Infrastructure, Machinery manufacturing etc, he said.

The Federal Republic of Germany being the 5th largest importer of Pakistani products has emerged as one of the important trading partner of Pakistan. Trade between Pakistan and Germany is being conducted in freely convertible currency in terms of the Trade Agreement signed in 1957.

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 giving enough room and confidence for upgrading the country's credit rating.

The Minister also briefed the envoy regarding the key features of Pakistan's Investment and Privatisation Policies and invited German companies to invest in all the potential sectors. 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 appraised the envoy of the facilitating role of Board Of Investment (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 held at Berlin last September was 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.

Dr. Christoph Brummer, German envoy to Pakistan said that the German  companies were keen to invest in Hydel and Coal Energy, Renewable Energies, Water Resources Management/ Dams, Information Technology, Telecom and Textile sectors and informed that a Business Delegation from Germany would visit Pakistan soon to identify more investment opportunities and to accelerate the pace of economic interaction between both the countries and hoped for further strengthening of Pakistan-German bilateral economic  relations.

A Memorandum of Understanding (MOU) between Pakistan German Business Forum (PGBF) and its counterpart in Germany Deutsche-Pakistan Forum (DPF) was signed in this regard for promoting the investment, trade and business relations with Pakistan in September 2003 Investment moot held at Berlin.

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment is  leaving for Germany to lead Pakistani delegation and to address two-day  Munich Management Colloquium being held from March 9 to 10, 2004. The theme of this year Colloquium will be "The Future of Growth".