The economy of Pakistan has grown at an average rate of almost 7.0 percent per annum during the last four years (2002/2003-2005/2006) and over 7.5 percent in the last three years (2003/2004-2005-2006) thus positioning itself as one of the fastest growing economies of the Asian region.
France and Pakistan have a long history of close ties in all fields, whether they be political, economic, cultural or defence. The relations between our two countries have traditionally been excellent and friendly, characterised by a high level of mutual consultations.
The state visits of President of Pakistan Pervez Musharraf to France in July 2003 and December 2004 bear testimony to it. Pakistan now possesses the internal stability required by the foreign investors. The proof of this is that the direct foreign investment crossed the one billion dollar mark last year. This growth is propelled by the industrial sector which as undergone an even more remarkable growth in 2003-04. With regard to trade, Pakistan is second-biggest market in South Asia, to France with total trade (imports + exports) of approximately €700M in 2004. France strengthened its position in Pakistan's market, which, fuelled by economic growth, absorbs a large number of foreign products. France's market share in Pakistan is growing, with 2.3% for 2004-2005.
Eighty percent of French imports of Pakistani products (€418M), which are growing slowly (+5.8%), involve products from the textile, clothing and pharmaceutical sector Exports to Pakistan stood at €280M in 2004 against €197M in 2003. This strong growth is based on best trade relations between Pakistan and France which consist on three categories of goods professional goods mechanised equipment intermediate goods and consumer goods.
Accompanied since 2005 by export credit guarantees of Coface as well as the restoration of financial cooperation in the form of RPE (Emerging countries funds) and FASEP, the French companies availed of these opportunities and gave a spectacular performance leading to an upsurge of their exports which picked us in 2004 and maintained an upward trend during 2005 to reach 407M€ (+44.8%). This two fold increase of French export in only three years concerns all the sector but mainly capital goods which account for more than half of our total exports. At the moment a number of new French investments are under negotiations.