TUNISIA EYES PAKISTAN’s TEXTILE-IT-S&T-FOOD PROCESSING SECTORS FOR INVESTMENT

Islamabad, September 3, 2007

Tunisia is keen to have joint ventures with Pakistan in textile, information technology, science and technology and food processing sectors. Mr. Afif Chelbi, Tunisian Minister for Industry, Energy, Small & Medium Enterprises stated this during a meeting with Mr. Muhammad Wasi Zafar Federal Minister for Privatisation & Investment here today.

Mr. Wasi Zafar stressed the need for exchange of business and trade delegation of both the countries to further promote the existing economic bonds and to benefit from each other’s experience in the related areas and the available investment opportunities. Pakistan was surplus in production of variety of fruits and provided opportunities in food processing, information technology, telecommunications, power, textile, oil & gas exploration, real estate, tourism, banking etc., he said.

Giving an overview of Pakistan’s economy and the salient features of the investment & privatisation policies and achievements as a result of the economic reforms introduced by the government, Mr. Wasi Zafar said that three pillars of Pakistan’s economy deregulation, liberalization and privatisation have yielded encouraging results.

He further stated that the continuity and consistency of policies 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 investment friendly environment along with 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, he stated.

Giving details of the achievements Mr. Wasi Zafar said that Pakistan’s investment friendly policies have yielded record results as witnessed during the fiscal year 2006-07 by setting new record of Foreign Investment to US $ 8.4 billion, which was 5.8 % of GDP, which was maintaining the level of 7 % for the last five years. Pakistan has comprehensive and broad based Privatisation Program, which provided attractive opportunities and PC Ordinance 2000 has given statuary cover to the whole process, he added.

The Minister further informed that Pakistan has so far privatised 166 public sector units raising US $ 7 billion since 1991 while 87 % of the privatisation was completed during the recent 7 years realizing around US $ 6.1 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.

Mr. Ahmed Jawad, Federal Secretary Ministry of Privatisation & Investment and Mr. Mushtaq Malik Secretary Board of Investment (BOI) also briefed the distinguished guest regarding the functioning of PC and BOI. Tunisian envoy to Pakistan was also present during the meeting.