There is a great co-operation between Pakistan and Japan in trade and investment. The two countries need to work closely to explore avenues of enhanced co-operation, particularly in the private sector.
Finance Minister Shaukat Aziz stated this, while talking to Shun Imaizumi, Chairman, Japan Pakistan Business Cooperation Committee and Hidefuni Ichikawa, General Manager, Itochu Corporation, which called on him here along with a delegation on Thursday.
The finance minister said that Pakistan and Japan have an impressive history of co-operation, particularly in the industrial sector. He also mentioned about Japan's contribution in the construction of the Kohat Tunnel, which eased accessibility to Northern Areas as well as the Indus Highway. He said that the present level of co-operation needed to be enhanced.
He stressed upon the need to revive yen credit and soft-term loans by Japan to facilitate further co-operation in trade and investment in Pakistan.
Briefing the delegation on the economic performance and structural reforms initiated during the last five years, Shaukat said that following the government's economic policies and structural reforms during the last five years, the economy was now very resilient. Pakistan has witnessed acceleration in economic growth, a high double-digit growth in large-scale manufacturing, sharp pick up in bank credit to private sector and a 30 percent increase in non-food non-oil imports.
He said the GDP growth during 2003-04 was at record 6.4 percent and the growth target for next year is 6.6 percent and thereafter this growth momentum is expected to move upward to 8 percent.
He said the government is introducing several initiatives in the Federal Budget 2004-05 to develop agricultural and industrial sectors. Infrastructure development is also on high priority in the budget. He said the budget 2004-05 would provide a number of opportunities to the local and foreign investors.
Shun Imaizumi appreciated the economic management in Pakistan. He expressed the hope that Pakistan's economy would continue to grow and develop at a faster pace.
He said he was encouraging Japanese entrepreneurs to invest in Pakistan, particularly in export processing zones and the upcoming textile city project.
The investment outlook for Pakistan has improved and it represents an attractive destination for foreign direct investment.