The international community is reluctant to invest in Pakistan due to energy (electricity and gas) shortage, and the worsening law and order situation in the country. This issue remained on top of concerns in discussions between the visiting Swedish Minister for Trade Mrs Eva Bjorling and Pakistani key officials including Minister for Commerce Amin Fahim here on Monday. Mrs Bjorling is heading a 16-member trade delegation.
"Pakistan's policies are not investment-friendly. First, improve law and order situation and ensure energy to the investors; then invite them," suggested the visiting Minister to Pakistan officials.
Although the Board of Investment (BoI), Economic Affairs Division, Ministry of Foreign Affairs and Trade Development Authority of Pakistan (TDAP) portrayed Pakistan as a new destination for investors, the Swedish Minister did not agree with them. However, Commerce Minister Amin during his meeting with his Swedish counterpart appreciated Sweden's role in extending a favourable trade package to Pakistan, recently cleared by member countries individually, though EU parliament is yet to approve it.
"EU decision to grant Pakistan tariff concessions on 75 tariff lines would help the country to revive the economy in post-flood situation," he said. The Swedish Minister said that flood devastation in Pakistan was severe, and the Swedish government would help Pakistan in this hour of need in infrastructure and rehabilitation efforts.
The delegation was informed that Pakistan had tremendous potential in wind energy sector, and coastal areas of Sindh and Balochistan are ideal for making investment by Swedish companies. The visiting Minister showed interest to increase investment in areas of IT, power generation and energy. SAAB and Ericson are some of the Swedish companies which have already invested in Pakistan.
Thousands of Pakistanis are getting higher education in Swedish universities and holding jobs there, and contributing to the economy of Sweden, she said. She showed interest in seeking more skilled labour from Pakistan. Sweden is one of the important trading partners of Pakistan in EU, and the bilateral trade between the two countries had reached $212 million in 2009-10. Pakistan's main exports to Sweden are textile material, rice, carpets, rugs and sports goods, whereas imports are machinery parts, chemicals, metals and steels.
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