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Two high-powered official delegations headed by Sri Lankan Minister for
Enterprise Development Mr. Mano Wija Ratne and Kenyan Minister for Agriculture
Mr. Kipruto Arap Kirwa accompanied by top business leaders held talks with Mr.
Zahid Hamid Federal Minister for Privatisation & Investment and senior
officials of Ministry of Privatisation & Investment to explore the investment
opportunities in Pakistan for the business groups of their respective
countries here today.
In separate meetings with both the delegations while giving overview of the
economy and the salient features of achievements as a result of the economic
reforms, Mr. Zahid Hamid said that Pakistan's GDP growth exceeding 7%, which
was second to Indonesia and Turkey. Three pillars of Pakistan's economy
deregulation, liberalization and privatisation have yielded encouraging
results. These major economic reforms have been termed as role model in the
World Economic Forum's discussions while IFC and World Bank has declared
Pakistan as the top reformer in the South Asian Region and 10th in the World
in a report titled, "Doing Business in 2006: South Asian Countries Pickup
Reform Pace", he said.
The Minister informed that in FY 2000 the public debt was 96%, which has
declined to 54 % in FY 2006, Export growth has accelerated to US $ 16.5
billion in FY 2006, which was US $ 8.5 billion in FY 2000, the Equity market
was out performing with market capitalization to the tune of US $ 47.5 billion
as of December 20, 2006.
He further stated that the continuity and consistency was the hallmark of the
government. The privatisation of public sectors entities has confined the
government's role to policy making, good governance and has foster competition
and increased efficiency and revenues. Exciting investment opportunities in an
environment of level playing field for both local and foreign investors,
effective regulatory framework with liberal policies have made Pakistan an
attractive destination for investment, which has also given boost to the
investors confidence, he added.
He informed that liberal investment policy included 100 % foreign equity in
all economic sectors, with attractive incentives like remittances of capital,
profits, royalty, technical and franchise fees without obtaining permission
from the government. The foreign investment was fully protected under Foreign
Private Investment (Promotion & Protection) Act 1976 and Protection of
Economic Reforms Act 1992. Pakistan has Bilateral Investment Treaties with 48
countries including Kenya and Avoidance of Double Taxation with 52 countries,
he stated.
Giving details of the achievements Mr. Zahid Hamid said that Pakistan's
investment friendly policies have yielded record results as witnessed during
the past FY 2006, which touched the record level of US $ 3.5 billion and this
accelerating trend was also evident during the first half of the current
fiscal year 2006-07 by setting new record of FDI till December as close to US
$ 3.3 billion, which was going to increase further in coming half, heading to
set another new record. Pakistan has comprehensive and broad based
Privatisation Program, which provided exciting and attractive opportunities
and PC Ordinance 2000 has given statuary cover to the whole process, he added.
The Minister further informed the members of the delegations that Pakistan has
so far privatised 163 public sector units raising US $ 7 billion since 1991
while 87 % of the privatisation was completed during the recent 7 years
realizing around US $ 6 billion through the privatisation of 61 transactions.
Our Privatisation Program provides a number of opportunities in Oil & Gas,
Power, Engineering, Financial Institutions, Minerals, Tourism and Restaurants
sectors, which included Oil & Gas Development Company, Pakistan Petroleum
Company, Pakistan State Oil, Sui Northern Gas Pipeline and Sui Southern Gas
Pipeline companies, PARCO, NIT, SME Bank, Jamshoro Power Co, Faisalabad
Electric Supply Co, Heavy Electrical Complex, Pakistan Machine Tool Factory,
Pakistan Steel Mills, PMDC's Coal and Salt mines, PTDC's Motels and
Restaurants etc.
He urged both the delegations to benefit from the investment opportunities in
IT & Telecom, Power, Oil & Gas, Mining, Agriculture, Infrastructure, SMEs,
Tourism, Chemicals, Engineering etc.
Both the leaders of these delegations, Sri Lankan Minister for Enterprise
Development Mr. Mano Wijaratne and Kenyan Minister for Agriculture Hon.
Kipruto Arap Kirwa while lauding the Pakistan's achievements on the economic
front expressed their keen interest to learn from Pakistan's economic reforms
and experience, which has made Pakistan's economy a vibrant one. They also
discussed to maintain the economic ties and to maximize the same by broadening
trade and investment and with the exchange of business delegations for the
mutual benefits of their countries and to further strengthen and improve the
existing business and trade volume. Mr. Talat Miyan Secretary Board of
Investment (BOI) and the senior officials of M/o Commerce, M/ o Privatisation
& Investment, NHA, BOI and representatives of the private sector and
respective Chambers of Commerce and Industries were present during the
meeting.