SHAIKH-LARSON DISCUSS PAK-US BUSINESS RELATIONS FDI APPROACHING US $ ONE BILLION- US delegation informed

Islamabad, September 13, 2004

The Foreign Direct Investment (FDI) is doubled during the past three years, which is approaching US $ one billion this year. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated this during a meeting with the visiting US delegation led by US Under Secretary of State Mr. Alan Larson, who called on him here today.

Dr. Hafeez Shaikh said that the structural reforms were encouraging investors in all sectors as Pakistan was poised for high growth and allowed free flow of capital. In a presentation to the delegation the Minister said that the consistency and continuity of
economic, investment and privatisation reforms policies had started yielding the results with stable exchange rate, 6.4 % GDP growth, best performing Stock Exchange in the region while growth in manufacturing sector was increasing to 15 % and the privatisation process showing increasing upward trend with Rs.33 billion average per year as compared with the previous performance of Rs. 6 billion per year during the first
decade of Privatisation and Rs12 billion per year during the first three years of Musharraf Government. Pakistan's liberal investment policy provided level playing field for local and foreign investors with 100 % foreign equity and no restriction on remittances of profit and capital, he said.

He stated that currently 57 US companies members of American Business Council of Pakistan were operating in Pakistan with 37.7 % FDI from USA, which would further expected to increase through potential investment from US investors in Oil & Gas, manufacturing & services, agriculture, pharmaceutical and Communication sectors. The participation by US investors in the privatisation program of Pakistan was another effective way to enter into Pakistani market through most transparent process.

The leader of the delegation Mr. Alan Larson, US Under Secretary of State lauded the government efforts undertaken through economic reforms and stated that Pakistan would be an emerging market tiger in the region. He expressed keen interest in the privatisation program and assured US support in the transformation of economic reforms and to promote investment in most of the sectors including pharmaceutical, infrastructure and agriculture sectors. Mr. Waseem Haqqie, Chairman Board of Investment (BOI) informed the meeting that a bilateral Investment Treaty was being finalized between Pakistan and USA. Mr. John Duncan Special Assistant, Christian R. De Angelis, Deputy Economic Counsellor and others also accompanied the delegation.