FOREIGN DIRECT INVESTMENT DOUBLES DURING LAST THREE YEARS- Hafeez Shaikh briefs Chinese Business delegation

Islamabad, March 15, 2005

A high-level 19-member investment delegation from Peoples Republic of China  led by Mr. Chen Jinhua President China Enterprise Confederation (CEC)  currently on an official visit to Pakistan held a meeting with Dr. Abdul  Hafeez Shaikh Federal Minister for Privatisation & Investment here today.

The Minister briefed the delegation regarding the economic reforms initiated by the government and informed that these reforms have started yielding results at macroeconomic level and capital market as well. The currency exchange rates were stable, tax revenues, foreign reserves were higher in the history of the country, our Stock exchanges were best performing in the world and the Foreign Direct Investment (FDI) has doubled during the last three years, he said.

Dr. Hafeez Shaikh added that in the first seven months of the current fiscal year 57 % increase in the FDI has been witnessed as compare to the previous year, which would further increase in the remaining period. After seven years the growth of economy recorded above 6 %, which would surpass 7 % this year, he hoped. The delegation was also briefed on the privatisation and deregulation policies and the performance in this regard.

He further stated that 31 Chinese companies were successfully operating in Pakistan in the Oil & Gas, IT, Telecom, Power Generation, Engineering, Automobiles, Infrastructure and Mining sectors and noted that during the last three years investment from China has increased, which needed to be enhanced through serious, committed efforts by the private sector of both the countries keeping in view our long term relations.

The leader of the delegation Mr. Chen Jinhua President China Enterprise Confederation (CEC) one of the architects of China's economic planning and reforms who was accompanied by top ranking CEO's of selected Chinese Enterprises lauded the economic reforms undertaken by Pakistan under the leadership of President General Pervez Musharraf and Prime Minister Shaukat Aziz and said that there existed vast potential for Chinese companies to invest in various sectors of Pakistan's economy. He stressed upon the investors of both the countries to work together to explore new avenues and opportunities to enhance the existing bilateral trade and investment relations while ensuring the transfer of technology.