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Pakistan’s economic achievements are remarkable and the country has the
ability and potential to become economic leader in the region. Mr. Mirek
Topolanek, Prime Minister of the Czech Republic, while addressing Pak-Czech
Investment Conference organized by Board of Investment (BOI) here today.
He pointed out that a favourable turn in Trade exchanges was evident from
three fold increase since 2000-2006 between Czech Republic and Pakistan, which
has exceeded US $ 70 million. This increasing trend was witnessed in the first
two months of 2007 when Czech exports to Pakistan were worth US $ 11.1 million
and imports stood at US $ 8.3 million while an increase of 200 % in Czech
exports to Pakistan was expected this year, he stated.
Mr. Mirek Topolanek, Prime Minister of the Czech Republic hoped that Trade,
Investment and Business relations between both the countries would further
grow and strengthened to make Pakistan remain our major Asian partner.
Mr. Zahid Hamid Federal Minister for Privatisation & Investment in his welcome
address underlined that there existed huge potential to strengthen economic
ties between our two countries, especially bilateral trade. Direct interaction
between the business communities of both countries will enable them to better
understand, and realize, the opportunities and prospects for cooperation in
various fields. Bilateral Investment Treaty (BIT) and Agreement for avoidance
of Double Taxation between both the countries would be finalized soon, he
said.
He said that Pakistan would benefit from the Czech’s knowledge and expertise
in the field of energy in view of our rapidly increasing needs for energy,
which has immense potential for cooperation in this field.
The Minister appreciated Czech participation through direct capital investment
or provision of technical expertise and know-how in various upstream and
downstream projects in the Oil & Gas, Mining and Power sectors and welcomed
signing of contract by SKODA for supplying machinery for a power project.
Pakistan and the Czech Republic enjoy most cordial relations, which continue
to grow from strength to strength. He termed Czech PM’s visit to Pakistan as
an important step towards development and enhancement of these relations,
based on mutually beneficial cooperation, especially in the economic field.
Elucidating the salient features of economic development under the dynamic
leadership of President General Pervez Musharraf and Prime Minister Shaukat
Aziz, major economic reforms in Pakistan during the last six years, the
Minister said that these reforms based on the three pillars of deregulation,
liberalization and privatisation, accompanied by good governance and
continuity and consistency of policies have completely transformed the economy
and placed on the path of rapid growth. Growth has averaged more than 7.5% per
annum during the last three years. The size of the GDP has doubled to $ 130
billion over the last 5 years. Per capita income has doubled to $847. Poverty
has declined from 34.5% to under 24% while public debt as percentage of GDP
has declined from 96% to under 55%. The Karachi Stock Market has out-performed
other emerging equity markets such as Malaysia, India, Indonesia, Egypt and
Turkey.
He further stated that Pakistan’s Privatisation Programme was acknowledged to
be the most successful in the region and has gained significant momentum under
the present government. During the last 7 years, more than $ 6 billion have
been realized from 61 transactions, which is 81% of the total transaction
proceeds obtained since establishment of the Privatisation Commission in 1991.
Mr. Zahid Hamid added that the Government’s investment policy was also one of
the most liberal and attractive in the region. There is a level playing field
for both foreign and local investors. All economic sectors are open to foreign
investors, who can invest upto 100 % equity. No Government sanctions or
permissions were required, and remittances of capital, profits & fees were
freely allowed and Foreign investment also has statutory protection, which
resulted dramatic improvement in Pakistan’s economic performance with
significant increase by more than 10 times from only $ 300 million in 2000-01
to $ 3.9 billion in foreign investment last year, the highest level in our
history and this year foreign investment would again set new records and
surpass $ 6 billion, he said.
Highlighting the promising areas of investment the Minister said that there
were also opportunities for joint ventures in the Information Technology,
automotive and precision engineering sectors, as well as in textiles, railways
and infrastructure development.
Mr. Zahid Hamid proposed an Investment Conference for businessmen from the
Czech Republic in Pakistan or in Prague or to send a delegation Czech Republic
to explore and identify specific projects of interest and avenues for
increased trade. He added that this could lead to a quantum jump in our
economic relations, the basis for which has already been laid with the signing
of MoU today between the Chambers of Commerce of the Czech Republic and
Pakistan.
The proceedings of the conference were followed by a Q & A session from the
participating leading business groups from both the sides and B 2 B
discussions.