QAMAR ASSURES SPECIAL ECONOMIC ZONE FOR JAPANESE INVESTORS ON PRIORITY 

Islamabad, July 23, 2008

Syed Naveed Qamar Federal Minister for Finance, Privatisation & Investment assured the visiting Japanese investors that Pakistan would ensure establishment of special Economic Zone for Japanese investors on priority basis, which would be equipped with the basic infrastructure. He was talking with a 15-member delegation on Pakistan-Japan Business Forum led by Mr. Makoto Kakebayashi during a meeting here today.

Giving an overview of Pakistan’s economy Syed Naveed Qamar said that the pressure on current account was due to oil and food imports, which was being curtailed through effective measures. Efforts were underway to improve environment for the private sector and a list of the public sector entities being offered through strategic sales, out right sale for privatisation would be made public within next ten days time, while the inflows of FDI have been good, which reflected GOP’s facilitated portfolio – based investment planning and especially the tremendous interest by the investors in the power projects in consideration of existing power shortage in Pakistan was encouraging, he stated.

In order to curtail the smuggling of diesel to the neighboring countries the subsidies on certain petroleum products would be reduced gradually, he added. He further informed that the Pakistani workers remittances have gone up to US $ 6.5 billion as compare to the previous years figure of US $ 5.5 billion.

The Finance Minister who is also Minister for Privatisation & Investment directed the Board of Investment (BOI) to work together with the Pakistan Japan Business Forum in conducting an in-depth study to find out the impediments being faced by the investors in general and the Japanese investors, in particular. A workable report should also be prepared in the light of this study suggesting remedial measures to remove all sort of hindrances and bottlenecks and all out efforts should be made to encourage the Japanese business sector to enhance their operations and investment in Pakistan, he added.

The leader of the delegation of Pakistan-Japan Business Forum Mr. Makoto Kakebayashi expressed that the Japanese Business and investment groups and the government were keen to modernize the basic infrastructure in Pakistan through Official Development assistance (ODA), JICA, JPIC in the health, education, water and communication sectors and projects of Khanki Barrage and Karachi circular railway were already underway. A report of the Pakistan Japan Business Forum joint study group would be submitted to the GoP by the end of the year, he said.

The members of the Japanese business delegation offered to install two 500-megawatt power plants in Pakistan and to further increase investment in the automobile industry.

The delegates further discussed with Finance Minister matters relating to promotion of business ties and trade relationship between the two countries. The Japanese Study Group comprises important Heads of Japanese companies that focus investment, business opportunities and bilateral trade between the two friendly countries. The Japanese Business Study Group aims to prepare a study report on scope, extent, problems and prospects of Japanese investment in Pakistan.

The Secretary Investment Division Mr. Ahmad Waqar and senior officers of Finance Division, Privatisation Commission and Board of Investment were also present during the meeting.