Pak-Canada joint study group to work for FTA

Steps are under way to set up Pak-Canada Joint Study Group for initiating Free Trade Agreement (FTA) between the two countries, as the volume of two-way trade is not up to the existing potentials of Pakistan and Canada.
These views were expressed by Pakistan Ambassador to Canada Shahid Malik while speaking at Lahore Chamber of Commerce and Industry (LCCI).
Member of Canadian Parliament Sinclair M Stevens, Consul General in Canada Saifullah Chattha, LCCI Senior Vice President Abdul Basit and former Senior Vice President Sohail Lashari also spoke on the occasion.
Shahid Malik maintained that Canada was an important trading partner of Pakistan. At present two-way trade is about 600 million Canadian dollars and there is tremendous scope for increasing this volume. He said that Pakistan had been trying to get greater market access in Canada.
"We have requested the Canadian Government for a joint study group to initiate FTA and negotiations are underway in this regard. This will definitely help facilitate the two-way trade."
Speaking on the occasion, Sinclair M Stevens, Member Parliament, Canada, said that joint ventures between the two countries were of worth consideration. He said that there was a need to redouble efforts for increasing the volume of trade between the two countries.
The trade with Canada would be a stepping-stone for trade with entire North American market, which itself is a very huge market with a huge potential. He said that Canada was an avenue that Pakistani businessmen could tap very well.
Abdul Basit said that Canadian International Development Agency had also played a valuable role in the development of Pakistan.
He said that Pakistan's growing economy and its strategic location as a regional hub- a principal gateway to Central Asian Republics, large consumer market, abundant natural resources, cheap but skilled labour, well established infrastructure and liberal investment-friendly policies offer immense opportunities for foreign investment, which had been facilitated by the government through a number of incentives.
All the economic sectors have been opened to foreign direct investment. Free movement of foreign exchange has been allowed. Foreigners have free access to capital markets and there is no restriction on borrowing if government guarantees are not sought. There is no limit on equity held by foreigners and no restrictions on entering into a joint venture with a Pakistani counterpart, he said.
He further said that establishment of Gwadar Port, Textile/Garments Cities at Karachi, Lahore & Faisalabad, Sundar Industrial Estate (Lahore) and Faisalabad Industrial City (FIC) offer huge lucrative opportunities to foreign investors.
He said oil & gas, engineering goods, mining, infrastructure, power, IT & telecom, chemicals, agro-based industries and SMEs were other attractive areas which could be explored for investment by foreigners.
These potentials need to be studied and monitored by the Commercial Sections of diplomatic missions of Canada and Pakistan for a more objective guidance of their investors and traders.
The interaction of Chambers of Commerce & Industry of both the countries could be instrumental in raising the level of bilateral trade and investment, he added.