FRIDAY DECEMBER 07: Promoting investment and trade: Zardari pins his hopes on provinces

ISLAMABAD: President Asif Ali Zardari has stressed upon provinces to play a proactive role in promoting investment and trade in the wake of the 18th Amendment, saying that it had empowered them to play a greater dynamic role in attracting local and foreign investment with continuity of policies.
The President said that Pakistan offered the most liberal investment opportunities in the region, including full repatriation of capital, capital gains, dividends and profits, adding that this had enabled the government to sign business investment treaties with several nations.
The President made these remarks while addressing the Overseas Investors Chamber of Commerce and Industry (OICCI)'s annual lunch at the presidency on Thursday. The President said that adverse impact of energy shortages on businesses was "the mother of all economic ills". He pointed out that if the energy policy of the previous PPP government had not been reversed, there would have been no power crisis. He said that efforts were under way to overcome power issues by diversifying sources of generation.
Stressing the need for increasing power production, besides reducing its price, the president said that the government has undertaken major hydroelectric projects including Diamer-Bhasha dam and raising of the Mangla Dam project, besides importing gas and electricity from other countries to meet the shortages.
The President said that the country also lacked access to international markets. He said that Pakistan was in dire need of trade and not aid and appreciated the EU for Preferential Market Access to Pakistani goods. However, he stressed the need for GSP-Plus status by the EU, which he said would further increase market access. The President said that the government was trying to enhance exports. He said that Trade Development Authority of Pakistan had launched a campaign to promote exports by organising trade exhibitions and sending trade delegations to explore new markets in China, Hong Kong, Russia and Malaysia besides expanding access to existing markets. He said that Pakistan also needed to explore markets in the African region, Latin America and Eastern Europe.
Spokesperson to the President Senator Farhatullah Babar said that the President congratulated Parliament and the government for passing a law whereby incentives offered to investors could not be withdrawn without Parliament's approval hence ensuring continuity of economic policies.
Terming a law on Special Economic Zones law a landmark achievement of the government to attract domestic and foreign investment, the president urged the business community to take ownership of policies and defend long-term economic policies even as governments change. He said: "We need greater private investment in infrastructure development adding that our railways need to be brought back to its past glory and modernised besides the need to expand road network."
The President said that buoyant stock market has offered a great opportunity to raise equity through the stock exchange. "Together with the people of Pakistan you all can benefit from the opportunities," he remarked. The President said that global financial crisis and militancy and terrorism had also adversely impacted investment and business activities, adding that it had also halted progress on many social programs in various parts the country.
Commenting on positive results of government measure, the President said tax collection and remittances by overseas Pakistanis and exports had increased. The President said government has taken number of measures to liberalise trade with India and in the region which he termed a major policy shift and expressed hope that these steps would help reconstruct the region's economies, besides boosting regional stability. He said that this policy shift was driven by business sectors on both sides of the border and would benefit all. Earlier, the managing committee of the OICCI, headed by its President Asif Jooma, called on the President and shared ideas for promoting trade and investment in the country.