Pakistan - Poland cooperation enters new era

05 May, 2007

My Dear Pakistanis Friends, It is an honour and privilege for me to address you on very important events for Poland: the 216th anniversary of the proclamation of May 3 Constitution our national day, Poland's 3rd anniversary of EU member-ship- 1st May and the 50th anniversary of the European Union (EU) and of course the first visit by the head of state from Pakistan to Poland.
The May 3rd Polish Constitution is the second oldest, after the American, and the first Law on Government on the European continent. In the 16th and first half of 17th century Poland was a superpower, being Europe's largest state and one of its richest. The later decades were less happy for Poland. A Cossack revolt broke out in Ukraine and Swedish invasion caused territorial losses and economic ruin.
Internal stability was lost and a central authority was often lacking. The May 3rd Constitution was well drafted and constantly regulated the state system. Poles followed elaborate modern codes of civil conduct and all Polish patriotic movements identified themselves with its ideas.
It was a reminder of the road to freedom, which was constantly fought for by the nation. Since Poland's political and economic transformation in 1989, May 3rd is a National Holiday and the ideas of the May 3rd Constitution are implemented in practice.
On May 1st 2004, Poland became a full-fledged member of the EU. Since enlargement to 27 countries, Europe has never been so prosperous, so secure or so free. European countries committed to dealing peacefully with disputes and to co-operating through common institutions. Successive enlargements are making a reality of the vision of a united and peaceful continent.
Poland has profited from its EU membership. For Poland the three years of membership has brought high economic growth and increase in exports. Poland, the largest of the 12 new members of the European Union, has experienced impressive economic growth in recent years. Poland enjoys an influence on the EU's foreign policy. Poland is among the countries, which has adjusted their legal systems to the EU system most efficiently. The country proved well prepared for tapping EU structural funds. The enlargement was a good thing.
We Poles are proud and very happy that we are members of the European Union (EU) which is a supranational and intergovernmental union of 27 states in Europe. The EU was established in 1992 by the Treaty on European Union (The Maastricht Treaty), and successor to the six-member European Economic Comm-unity founded in May 1957. Since then, new accessions have raised the number of member states, and competencies have expanded. The EU is the current stage of a continuing open-ended process of European integration.
The EU is one of the largest economic and political entities in the world, with 494 million people and a combined nominal GDP of ¤11.6 ($14.5) trillion in 2006. The Union is a single market with a common trade policy, a Common Agricultural Fisheries Policy, and a Regional policy to assist underdeveloped regions. It introduced a single currency, the Euro, adopted by 13 member states.
The EU initiated a limited Common Foreign and Security Policy, and a limited Police and Judicial Co-operation in Criminal Matters Important EU institutions and bodies include the European Commission, the Council of the European Union, the European Council, the European Central Bank, the European Court of Justice, and the European Parliament. Citizens of EU member states are also EU citizens: they directly elect the European Parliament, once every five years. They can live, travel, work, and invest in other member states (with some restrictions on new member states). Pass-port control and customs check at most internal borders were abolished by the Schengen Agreement.
Poland is determined to do its best to consolidate her integration within the EU. At the same time we will strive to enhance our relations with non-EU countries our closest and more distant neighbours and friends, such as Pakistan. Our membership in the European Union provides channels for more political influence.
We will participate in building a strategic partnership between the EU and Pakistan and in strengthening mutually beneficial co- operation. Such partnership will be beneficial to all concerned parties: Pakistan, Poland and the European Union.
The Polish people very warmly welcomed President Pervez Musharraf during his three-day to Poland last month. This was the first ever visit by a head of state from Pakistan to Poland. During his visit President Musharraf had hectic engagements in the Polish Capital, Warsaw that included official level talks with his Polish counterpart, Lech Kaczynski and Polish Prime Minister Jaroslaw Kaczynski.
Five bilateral agreements and MoUs covering mutually beneficial co-operation in the fields of defence, small and medium size enterprises, education, science and culture, economic co-operation, and the Federation of Pakistan Chambers of Commerce and Industry with his Polish counterpart. Pakistan and Poland enjoy cordial and co-operative relations and we are sure that visit of President Pervez Musharraf to Poland will stimulate co-operation between our countries in all areas.
We are convinced that the fruitful visit of President Musharraf to Poland will stimulate and further strengthen relations, particularly expansion of cooperation in trade and com-merce between our countries.
Pakistan is a very important partner for Poland in Southeast Asia. The two countries have over a 45 years old tradition of co-operation. Unfortunately our potential in developing economic and trade relations has not been fully explored and utilised. Pakistan has the potential to become a major economic leader in Asia owing to the progressive leadership to the country, rich resources and skilled, entrepreneurial and talented people.
During three years of my stay in Karachi I have witnessed structural and economic reforms carried out by the Pakistan Government. The government has introduced pra-ctical macroeconomic policies, which have transformed Paki-stan into a stable and fast gro-wing economy. Pakistan econo-my has been growing very fast in the last few years, making the country an attractive place for investment.
I admire the achievement of taking the country from negative growth in 1998-1999 to the landmark figure of 6.6 % GDP and over 9 % of industrial growth in 2005/06. Pakistan is one of the fastest growing economies in the region and is anticipating 6 to 8% growths for the next five to seven years. Pakistanis economy is on a high growth trajectory
Nature and their geopolitical location privilege Poland and Pakistan.. Pakistan is located at the confluence of three vital regions - South Asia, Central Asia and West Asia- providing shortest access to the sea to the landlocked Central Asian countries and Western China. The location of Pakistan helps in the co-operation between all three regions for energy, trade, transportation and tourism.
Pakistan has the best geographical proximity to Afghanistan, countries of the Central Asia, Middle East and Western China. Polish products and services can be exported not only to Pakistan but also via Pakistani business-men to the neighbouring countries.
Likewise, Poland is located in the centre of Europe. Pakistani businessmen and industrialists should take into consideration that Poland is situated in the heart of Europe, which provides an excellent base for Pakistan's economic expansion into the European Union and into the East Central European countries. Poland could serve as a launching pad and serve as a springboard for Pakistani products in Europe.
Poland is a medium sized European country with a population of slightly more than 38 million and considerable economic potential. Poland is a country of young and well educated people and a country of huge economic potential. It is a huge market and presents a big opportunity for Pakistani products. Poland has continuously increased its share and importance in the world economy In 2006 Polish GDP rose by 5.8 percent. Polish exports in 2006 were $109107.7 million while import in the same period was $124647.1 million.
Poland is among the world leaders in the production of many industrial goods. It is among the world's top producers of refined copper, nitrogenous and phosphate fertilisers, sulphur, hard coal and brown coal, and is one of the top 20 producers of sulphuric acid, cement, crude steel, TV sets, vessels, passenger cars, trucks electrical, electronic equipment and household appliances, including washers and refrigerators.
Poland is also an attractive country for foreign investors due to the following factors: political stability, strategic location in the centre of Europe, which can act as a springboard for businesses in the whole of Europe, as well trained and skilled labour force, transparent rules for foreign investors. Polish regulations pertaining to business operations have been significantly simplified; foreign or domestic companies willing to conduct business in Poland face no other formalities than court registration.
The law guarantees owner-ship rights of foreigners, as well as full repatriation/ transfer of profits and returns on investments. Since the beginning of the transformation of Polish economy in 1990, $106 billion has come into our country in the form of purchase of existing enterprises or investments in establishment of new ones. This is the best result in all of Central and Eastern Europe. Poland attracted 14.7 billion USD in new foreign investments in 2006. We expect this year's investments to reach a similar figure.
Pakistan has the potential to become a tourist destination and develop a major tourist industry. You have the most beautiful part of Himalayan Mountains. Pakistan can be an great attraction for group tours, religious and cultural tours as it has a rich heritage including old mosques, Gandhara art and culture, relics at Taxila, shrines and ancient buildings.
Poland wishes to expand their ties with Pakistan in trade and economy, to cooperate in the fields of gas & oil, energy, infrastructure, maritime, engineering and agro-food sectors as well as development of small and medium enterprises (SMEs). Poland can supply electric equipment including diesel generators, railway equipment's, agriculture machinery and spare parts, heavy vehicles and marine and diesel engines.
Our countries should focus on the development of projects in agriculture agri business, water supply, resource management, creating new opportunities and transfer of new technology. We have achieved a lot but a lot more need to be achieved. We wish to work together to support the private sector development by promoting and supporting economic co-operation between the business sectors of the two countries.
Poland is seriously interested in expanding economic relations with Pakistan. There are three (Oil and Gas Exploration Company Krakow Ltd, Geofizyka Kraków Ltd, Polish State Gas and Oil) Polish companies that have offered their services in gas and oil sectors in Pakistan.
Very useful for the commercial relations was visit of 11-member delegation from Polish Chamber of Commerce in Karachi from 29th March to 2nd April 2007. The delegation represented their very well known business organisations of Poland. Delegation of Polish businessmen participated in "Expo-Pakistan 2007" had very fruitful business talks with management and businessmen of the Karachi Chamber of Commerce and Industry, Korangi Association of Trade Industry and SITE Association of Industry.
The main aim of the meetings and talks were to encourage and promote the trade relations between Polish and Pakistani entrepreneurs.
Poland is also interested to cooperate with Pakistan in coal and mining industry. The experts of the biggest Polish Mining Corporation "Kopex" have paid a one-week visit to Karachi from 23 rd of April.
They come to Pakistan to get acquainted with the current requirements and plans of Sindh, to consider investment, establishment of Joint Ventures with Pakistani Companies as well as delivering mining machinery. Our trade mission soon will take part in June International Exhibition "My Karachi - Oasis of harmony" and 3rd Build Asia 2007 International Exhibition & Conference in August 2007.
I am very glad that during the past 45 years Polish-Pakistani relations have matured, strengthened and reached a new political and economic dimension. I will continue encouraging as far as possible Polish businessmen, the Polish Chamber of Commerce and Industry representatives to take part in international exhibitions and conferences held in Karachi Expo Center. Pakistan has many products that should be of interest to Poland.
I am very happy that the trade figures for the last three-year's between our two countries shows an upward tendency. For 2005 the turnover in trade between Poland and Pakistan was 129,34 million USD. Poland exported goods for 63.745 million of USD and Pakistan for 65.602 USD. According to preliminary data in 2006 the turnover in trade was 110 million USD. Poland exported goods for 32.2 million of USD and Pakistan for 75.5 million of USD. The balance of trade is in favour of Pakistan for 45.4 million of USD.
The biggest sectors in Pakistani export were textiles (cotton fabrics, cotton yarn, clothes, bedding, towels), chemical fibre, leather products, sports products vegetable products and corn (rice), plastics, toys, marble, onyx, medical and veterinary instruments (surgical, dental, pedicure, manicure instruments).
Poland exported to Pakistan machines, chemicals, cast iron and steel, wood pulp and cardboard, fertiliser, newsprint, machinery engines, rolling bearings, oil seeds, milk powder.
To boost trade and economic relations between Poland and Pakistan, the Consulate in Karachi has available information on business opportunities in Poland and maintains a database of over 50 thousand Polish firms offering their products and services. Our Consulate has gathered offers from Polish companies and created a database of Polish industries and companies that are potential business areas and partners for Pakistani companies. I am convinced that the Website of our Consulate in English and Polish version and our other efforts are helpful to entrepreneurs and will serve to boost the trade and economic co-operation between Poland and Pakistan.
I have the highest esteem for the Pakistani people and convey them my cordial regards and best wishes.
On behalf of the Consulate General of Poland in Karachi on this auspicious occasion, I wish to extend to the government and the friendly, generous and hospitable people of Pakistan the warmest greetings and best wishes. I also want to cordially thank the Pakistani people for all that they have done for me and our Consulate during my three years works in Metropolis City of Karachi. God blesses Poland and Pakistan.

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