ZAHID URGES SRI LANKAN & KENYAN DELEGATIONS TO BENEFIT FROM ATTRACTIVE INVESTMENT OPPORTUNITIES IN PAKISTAN

Islamabad, January 7, 2007

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.