The German companies, representing environment protection, information technology (IT) and telecom, construction, spinning and knitting, surgical goods etc have shown keen interest to start joint ventures with Pakistani counterparts.
These views were expressed by German Deputy Minister for Economy Ditmar Staffelt who called on Advisor to Prime Minister on Finance, Dr Salman Shah here on Monday along with a delegation of German businessmen.
Talking to the delegation Dr Salman Shah said, the talks held between German Chancellor, Gerhard Schroeder and Pakistani authorities show that the two countries enjoy proximity of views on a number of issues.
Historically Germany enjoys an outstanding image in Pakistan in terms of quality of its products. The understanding and confidence that exists between Pakistan and Germany needs to be leveraged to enhance trade and investment between the two countries.
Highlighting the major transformation-taking place in the economy of Pakistan, Dr Salman said during the last year Pakistan achieved a higher than targeted growth rate of 6.4 percent and all macro economic indicators exhibited marked improvement.
This year's target is 6.6 percent. Foreign exchange reserves are more than 12 billion dollars.
The country has a low inflationary environment. The advisor said the growth is largely emanating in the private sector, which has been given due importance and significance by the government.
The government has simplified the tax regime and eliminated undue regulations to improve the efficiency and productivity of private sector.
The advisor added that the economic reforms introduced by the government, incentives offered for investment, transparency and openness in government's policies, improved infrastructure.
He said that availability of human capital coupled with continuity and consistency of policies and political stability achieved by Pakistan has made it an attractive place for investment.
Attracting investment is the number one priority of the government of Prime Minister Shaukat Aziz, added Dr Salman Shah.
He said Pakistan with a population of 140 million has a large domestic market. In addition the geo-strategic location of the country coupled with availability of cheap skilled labour makes Pakistan suitable to be the regional hub of trade and investment activities.
Ditmar Staffelt, the German Minister for Economy appreciating the economic stability achieved by Pakistan said Germany is keen to invest in Pakistan and start some joint ventures.
He noted that 70 percent of German GDP was contributed by the small and medium enterprises and these companies do not have sufficient information about Pakistan, its policies, incentives and opportunities for investment.
The SME sector in Germany can source their requirements from Pakistani companies provided these companies market their products to German companies effectively.
He invited Pakistan to participate in some forthcoming tourist fairs and industrial exhibitions in Germany to introduce and publicise its policies and products in a better manner.
The Advisor noted that it is important that Pakistan and German chambers of commerce should create close linkages with each other.
He also said that Chancellor Schroeder and Prime Minister Shaukat Aziz had agreed to establish close linkages between German and Pakistani educational institutions and in this respect leading German universities will start their programmes in Pakistan.
The German businessmen asked a number of questions about business environment and opportunities in Pakistan. Dr Salman Shah has directed the relevant quarters for intensive follow up of the discussions to smoothen the process of investment.
The meeting was also attended by Minister of State for Economic Affairs, Ms Hina Rabbani Khar, German Ambassador in Pakistan, Economic Counsellor, Embassy of Germany and Pakistan's Ambassador in Germany.