LCCI, UAE agree to enhance economic cooperation

RECORDER REPORT

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) and UAE Embassy on Monday agreed to work on preparing a roadmap aimed at further promoting economic cooperation between the two countries.

The decision to this effect was taken at a meeting between LCCI President Farooq Iftikhar and UAE Ambassador in Pakistan Essa Abdulla Al Basha Al-Noaimi here at the Lahore Chamber on Monday.

LCCI Vice President Mian Abuzar Shad, former president Irfan Qaiser Sheikh, former vice presidents Shafqat Saeed Piracha, Saeeda Nazar, Executive Committee Members Mian Zahid Javaid, Mudassor Masood, Nasir Saeed, Kashif Anwar and Tashraff Javaid also spoke on the occasion. UAE Honorary Consul in Lahore Chaudhry Munir also accompanied the Ambassador.

The UAE Ambassador maintained that exchange of trade delegations, participation in each other’s fairs and exhibitions, protection to foreign investments and timely dissemination of trade related informed would be pursued with a new strategy.

He underscored the need for promotion of the people-to-people contacts and said this would help strengthen greater cooperation between the two sides. He said the UAE greatly values its deep-rooted relations with Pakistan and committed to further consolidate the existing economic ties.

Essa Abdulla Al Basha Al-Noaimi said that bilateral trade and investments in Pakistan has reached $23 billion in various areas of banking and real estate, energy, infrastructure, telecommunications, ports, housing and aviation, and the two sides are taking interest to hold international expos and joint investments in both countries for the development of this sector and the promotion of economy. He said the UAE had organised a conference in March 2010 at Dubai aimed at promoting investment in Pakistan.

Speaking on the occasion, the LCCI President Farooq Iftikhar expressed serious concern over fast declining UAE investment in Pakistan and sought the Ambassador’s help to overcome the phenomenon. He elaborated that Pakistan was facing difficult situation in terms of attracting foreign investment. In 2006-2007, FDI in Pakistan peaked by reaching US $8.1 billion but since then it has been subjected to serious downfall. At that time, the share of FDI from UAE was around US $661 million. As of now the total FDI level in Pakistan has shrunk to well under US $1 billion. The point of concern is that UAE’s share in FDI has gone below US $50 million, he added.

The LCCI President said that it was just a misconception that Pakistan was not safe for foreign investment. He said the UAE Embassy could play a role for re-routing the investment in a number of areas including Energy, Livestock and Infrastructure Development. If the UAE investors come up investment in industrial estates in Pakistan, it would of great help to the country’s economy, he added.

He urged the Ambassador to use his good offices for expediting work on Khalifa Refinery as the project was of immense importance.

The LCCI Vice President Mian Abuzar Shad said 1.2 million Pakistani expatriates in the UAE are making valuable contributions to the economic and social development of the UAE and Pakistan is interested in further expanding bilateral cooperation with the UAE in the field of manpower.

It may be noted that the UAE and Pakistan are major economic and trading partners. Trade between the two countries is increasing and from 2009 to 2011 the total trade has leaped from US $4.89 billion to US $8.74 billion which is phenomenal.

The UAE has emerged as second largest destination of Pakistani exports. The increase is significant since the beginning of 2009 as our exports grew from US $1.54 billion to US $1.92 billion in 2011.

Although Pakistan has been experiencing unfavourable balance of trade with UAE but it is mainly because of oil import.

Out of total imports last year which amounted to US $6.82 billion, the value of oil imported by Pakistan from UAE was US $5.81 billion.

Pakistan’s major items of exports to UAE are articles of jewellery, petroleum oils, rice, wheat, bed & kitchen linens, meat etc. Similarly Pakistan imports crude oil, petroleum products, gold, ferrous waste & scrap of iron & steel, polymers of ethylene and silver etc.