Pakistan offers huge profits, strategic market to investors: Salman addresses investment seminar in Tokyo

Adviser to Prime Minister on Finance, Revenue, Economic Affairs and Statistics, Dr Salman Shah urged the Japanese businessmen and financial institutions to take advantage of the investment opportunities available in Pakistan.
While addressing the Pakistan Investment Seminar in Tokyo, Dr Shah said the country's economy which was afflicted with stagflation six years ago came out as the second fastest growing economy of Asia by virtue of strong commitment to reform agenda, a message received here on Saturday from Tokyo said.
Advisor said foreign investment, which was close to US $403 million in 1998-99, is expected to surpass US $3.5 billion mark during current fiscal year.
Dr Shah stated that resource allocation system was completely in the private hands, which was being run according to the market check and balance system.
Advisor to PM informed the audience that 85 percent of banking and telecom sectors are already in private sector and the government of Pakistan intends to privatise the remaining public sector's assets like OGDC and utilities very soon. Around 10 to 15 billion dollar assets will be privatised in the near future, he estimated. The Advisor said that 2 to 2.5 billion dollars worth of disinvestment would take place every year.
Rising profitability has created strong demand for credit by the private sector, adding, on account of stable macroeconomic environment, rising foreign investment, sustainable debt, improving social indicators, Pakistan's economic growth is projected to range between 6-8 percent annually, he observed.
He said Pakistan was currently mulling on second generation reform agenda after successful implementation of the first generation reforms.
Earlier, Pakistan Ambassador Kamran Niaz informed the audience that in spite of difficulties and many challenges, Pakistan had in recent years succeeded in achieving an economic turnaround.
"Our economic growth rate of 8.4 percent in the last financial year was among the highest in Asia", he said adding, due to the prudent economic policies of the present government, foreign investment in the country crossed the $1.5 billion barrier last year. Foreign exchange reserves are sufficient to cover our imports for 10 months. Pakistan's exports and imports continue to grow at a healthy rate, Niaz stated.
Ambassador said, "Since the establishment of formal diplomatic ties in 1952, the relations between Pakistan and Japan have been marked by co-operation, understanding and shared perceptions on major international issues".
The friendly ties between the two countries entered a new phase with the visit of Prime Minister Junichiro Koizumi to Pakistan in April 2005 and the return visit of Prime Minister Shaukat Aziz in August last year." He observed, "The recent series of high level exchanges that have become a permanent feature of Pakistan-Japan relations testify to the health and vitality of this important relationship, he added.
General Manager of Marubeni Corporation Katsuhira Yamamoto also presented a case study of Japanese investment in Pakistan.
A large number of Japanese businessmen, representatives of financial institutions and trading houses, Pakistan Embassy officials as well as senior officials belonging to the Japanese Ministries of Foreign Affairs, Economic, Trade and Industry, Japan Bank of International Co-operation, Japan Institute for Overseas Investment, and JETRO attended the seminar.