Ukraine offers to establish 'Trading Houses' in Pakistan

The government of Ukraine has offered to establish 'Trading Houses' in Pakistan to encourage bilateral trade between the two countries. The high-powered Ukrainian delegation led by Ahmad Nawaz Saleem Mela, ambassador of Pakistan to Ukraine and Volodymyr LAKOMOV ambassador of Ukraine to Pakistan during its visit to Export Processing Zones Authority (EPZA) has shown interest to establish 'Trading Houses' in Pakistan.
The head of the delegation, Alexandr Lvanchuk, said they are hoping to sign some business contracts with Pakistan during the three-day business trip and the Ukrainian businessmen are poised to pour investments in Pakistan especially in mining and agriculture machinery projects.
He said that although Pakistan had a capacity to export substantial quantity of textile raw material, the Ukraine despite having a demand of 50, 000 tons of raw cotton annually meets the same from other countries especially from China. He also urged the authorities of both countries to evaluate the potential of each other to explore new business venues for them and added that the Pakistani businessmen could also be provided access to Ukrainian markets for their products.
Chairman EPZA Muhammad Tariq Hussain has assured full support to materialise the proposal of establishing Ukrainian Trading Houses in Pakistan. He said that the EPZA was offering developed land on 30-year lease at the nominal rate of just US $5 per sq/meter. For business purpose, the country has strategically known to be best place for both imports and exports, he said and added that the EPZs are considered to be the most viable option for establishing Trading Houses to cater the demands of local and central Asian markets.
He said that there was a highly lucrative policy regime for foreign investments carrying range of benefits for investors and the EPZA has allowed offshore banking to facilitate foreign investors at maximum.
He also lauded the efforts of honorary consul general of Ukraine Engr. M.A Jabbar to bring Ukrainian entrepreneurs to Pakistan for strengthening bilateral relations, despite prevailing law and order situation. Volodymyr LAKOMOV said that the Ukraine government was keen to commence projects here and for the purpose they were seeking assistance from Pakistan.
Earlier, the delegation visited Pakistan Steel Mills (PSM) where the officials gave detained presentation about the operations of the mills. Meanwhile, Engr. M.A Jabbar, who is a director on board of Pakistan Steel and EPZA, said the Pakistan Steel and its construction history remained full of contribution of the Ukraine.
He said the Coke oven batteries and some important plants of PSM came from Ukraine and recently one of the Ukrainian companies has reconstructed Coke oven batteries and added that Ukrainian experts are presently providing services to PSM in most critical areas. Replying to a question, Engr. Jabbar, who is also chief Patron of Pakistan Ukraine Business Council (PUBC), said if Ukrainian delegates are properly briefed and sensitised by EPZA, they could set up Trading Houses for re-export of their engineering products to local and international markets.
He said the national trade corridor needs infrastructure for connectivity to South Asia and the Ukrainian after establishing its existence in EPZA could provide engineering assistance for improved land routes for export-import operations. He said the presence of Ukraine Trading houses in EPZA would create miraculous impact on the total volume of exports, which is expected to increase in manifold.
Moreover, he said, Pakistan, which is 5th largest milk producing country in the world, needs value addition and Ukraine could become partner to establish dairy plants for export oriented products. Major General Muhammad Javeed (Retd), CEO, PSM in his keynote address stressed the need of more corporations between the two countries. He hoped that the PSM would become the focal point of corporation between these countries in future.
CEO PSM while talking to Business Recorder said that although the visit of Ukrainian delegation to PSM would have positive impact on corporation between the two nations. He said there is no plan to sign any agreement with the visiting delegation. "As public enterprise, the PSM always discourages private investments but prefers coming under government-to-government agreements," he maintained. To a question, he said the PSM is contemplating the proposals of different countries including Russia, China and others to materialise its expansion plan.