The Norwegian Ambassador Jens Bjorn Kanavin has said that there is a need for making concerted and sector-specific efforts to enhance economic co-operation between the two countries and the chambers of commerce could do a lot in this regard.
While talking to the LCCI President Mian Misbahur Rehman here at LCCI, Kanavin said that trade between the two countries is stagnant for almost five years and keeping in view the fast changing global scenario, Pakistan and Norway should take practical steps to increase the business between the two sides. He said that Norway is ready to take necessary steps to expand its ties with Pakistan and to take part in its socio-economic development.
Speaking on this occasion, Misbahur Rehman said that Norway is not a new country to Pakistan. It is a home to a large Pakistani community, which is contributing to the Norwegian economy in different ways. Launching of Telenor Cellular service would strengthen contacts between Pakistan and Norway, he added.
He said that Pakistan-Norway trade reveals that both Norway and Pakistan have to raise their level of economic co-operation. The current level of trade between the two countries is at the minimal level and has not made any headway over the last five years. He said a five-year analysis of trade between Pakistan and Norway (1999-2000 to 2003-04) indicates that exports from Pakistan remained at 27 million dollars.
There is absolutely no increase in Pakistan''s exports to Norway during this period. On the other hand, the imports from Norway have declined from 10.7 million dollars in 1999-00 to 7.8 million dollars in 2003-04. The overall volume of trade between the two countries has also declined from 38.1 million dollars in 1999-00 to 35.1 million dollars in 2003-04.
Although, Pakistan has enjoyed a favourable balance of trade with Norway but current level of trade between the two countries is very small. He said that Pakistan''s economy has made significant progress over the last five years, while structural reforms, practical economic policies, financial discipline have transformed Pakistan into a stable and growing economy.
He said Pakistan''s growing economy and its strategic location as a regional hub - a principal gateway to Central Asian Republics, large consumer market, abundant natural resources, cheap but skilled labour, well established infrastructure and liberal investment friendly policies offer immense opportunities for Norwegian investors to invest in areas such as pharmaceuticals, oil & gas, food processing, pulp & paper products, chemicals, telecommunications, petroleum & petroleum products, Information Technology etc.
Under the liberal foreign investment policies of Pakistan, there is no restriction on repatriation of principal, dividends and profit. There is no limit on equity held by foreigners and no restrictions on entering into a joint venture with a Pakistani counterpart. Norwegian industrialists can maximise their profits by relocating their existing industries in Pakistan, he added.