PAK-IRAN JOINT INVESTMENT COMPANY TO OPEN A NEW ERA OF ECONOMIC BONDS- ZAHID HAMID

Islamabad, January 5, 2007

The Pak-Iran Investment Company, a Joint Venture between both the governments will open a new era of further deepening, cementing and strengthening of the economic bonds between the two friendly and neighboring countries. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this during a meeting with a visiting high level 4-member Iranian delegation led by Mr. Darvishzadeh, Chairman/ MD Iran Foreign Investment Company here today.

The Minister assured Pakistan’s full support to make the Investment Company an effective tool for the investors of both the countries. It would generate economic activities for both by identifying new areas for investment and would benefit people of both the countries, he added.

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 by setting new record of FDI till December as close to US $ 3 billion going to increase further in coming half. 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 delegation that the country’s economy was growing at the rate of 7 %, which expected to continue. Pakistan has so far privatised 162 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.

The leader of the delegation Mr. Darvishzadeh, Chairman/ MD Iran Foreign Investment Company informed the Minister that to establish a Joint Venture Investment Company an agreement has already been inked and his present visit was focused to take concrete steps for the implementation phase. The company would be established with an asset of US $ 25 million, which both the governments, would equally share, he informed.

He added that we intended to invest out of Iran in the power, petrochemical and other sectors and would identify new areas and sectors for investment. The delegation members lauded Pakistan’s economic achievements and desired to benefit from its privatisation experience.

The other members of the delegation included Seyed Mansoor Mir Abedeni, Deputy Chairman Iran Foreign Investment Company, Dr. Morteza Adel Gholamzadeh, Consultant Law and Mr. Mashaallah Shakeri, Ambassador of the Islamic Republic of Iran to Pakistan. Secretary Board of Investment Mr. Tallat Miyyan and acting MD Pak-Iran Investment Company Mr. Istaqbal Mehdi were also present during the meeting.