German Ambassador Christoph Brummer has said that Pakistan and Germany are negotiating Investment Protection and Enhancement Agreement which is fast heading towards a big breakthrough and as soon as agreement gets the final shape, the volume of trade between two countries would increase manifold.
While addressing a business information seminar jointly arranged by the Lahore Chamber of Commerce & Industry (LCCI) and Pakistan-Germany Business Forum here on Saturday, Brummer said that need for such a new agreement was realised as the old one was outdated signed back in 1962.
He said that during President General Pervez Musharraf's visit to Germany it was agreed to have a new agreement. He said that draft of the new agreement had been prepare.
However, he said that there was some difference of opinion between the two countries over an arbitration clause. He hoped that the issue would be settled, as there were positive signals. He said he was convinced that this new agreement would fetch more and more business to Pakistan. He also hoped that the visit of the German delegation would also bear positive fruits in this regard.
Head of the visiting German delegation, Heinrich O.E Birr, called for improving the image of Pakistan to attract Foreign Direct Investment (FDI).
He, however, was confident that the efforts being made by the Government of Pakistan to tackle the issue of terrorism and the seriousness being shown by India and Pakistan to resolve Indian occupied Kashmir issue would bring good for Pakistan.
He said that despite difficult situation in both internal and external politics, the recent year showed an impressive development of Pakistan's economy. He also lauded the role of President Musharraf and Prime Minister Shaukat Aziz in inviting foreign investment.
Speaking on the occasion, the LCCI President, Mian Misbah-ur-Rehman said that the visit of German businessmen reflects the rising interest of German business community in the Pakistan market. He said that exchange of trade delegations always lead to stronger trade and investment relations. He said that Germany enjoys good reputation among the Pakistani consumers for many decades. The domestic and industrial users have always preferred German products.
We need to sustain that goodwill and expand mutual trade and investment ties in the coming years, he added.
He said that developments taking place in European Union (EU) and South East Asia couldn't be ignored.
The new trade regime under WTO predictably strengthens the developed Europe under the umbrella of European Union. Likewise South Asia is also going through an economic integration process despite a very slow process of normalisation. He said that economic integration of South Asian economies presents foreign investment in the region with a unified market of over one billion, with somewhat similar tastes and preferences.
Qazi Sajid a representative of BASF in his presentation threw light on success of German companies already doing business in Pakistan.
According to him profit ratio of these companies varies from 20 percent to 56 percent. Chairman Pakistan-German Business Forum, Farhat Ali, LCCI SVP Sohail Lashari, Vice-President Sheikh Arshad, Executive Committee member Irfan Qaiser and others also spoke on the occasion.
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