Pakistan is graduating to the next level of economic development and it is one of the most attractive places for direct foreign investment. The government is all out to provide maximum facilities to foreign investors.
The government invites Pakistan Japan Business Forum to initiate the setting up of a 2000-acre economic free zone outside Karachi or near Keti Bunder at the periphery of the coastline that would be profitable to Japanese long-term investors.
Pakistan is geo-strategically well poised to cater to the Middle Eastern countries and Afghanistan. The government is willing to provide the required infrastructure such as road network, gas pipeline, and electricity, this was stated by Federal Minister for Finance, Revenue, Economic Affairs and Statistics, Dr Salman Shah, at a dinner hosted in his honour by Pakistan-Japan Business Forum in Karachi.
Dr Shah further added that Pakistan is today one of the fastest growing economies of Asia. The government introduced and supported prudent economic management and structural reform of fiscal consolidation, debt reduction, deregulation and privatisation and liberalisation policies and as a consequence of these reforms, Pakistan economy has grown at the rate of 7% per annum in the last five years and the GDP is over $160 billion. He said that Pakistan has almost 100 million citizens under the age of 25 and they are entering the economic sphere. This is a potent market. The size of the families is becoming smaller and these are signs of a dynamic market growth.
Regarding Stock Market, the Minister stated that one can compare present Stock Exchange to year 2000, when the index was 1200 - 1300 while today's index is over 14000. To reduce the cost of capital, the corporate sector should step in the stock market by listing their companies in the Stock Exchange. He informed that government would separate the brokerage activity from the stock market very soon through Demutualisation. He assured that there is a lot of room for further investment and the government is trying to strengthen the Stock Market.
Dr Shah moreover said that to promote investment from Japan, the government is willing to accept pragmatic proposals from Japanese investors and emphasised that the present investment from Japan, and most importantly the Japanese companies who already exist in Pakistan, are the best judge to advise Japanese government and companies regarding the potential of our country.
Dr Shah also apprised that smaller government and fast track responsiveness is the agenda of the caretaker government. Regarding Public Sector Capacity Building Programme, he informed that government has established NAVTEC (National Vocational and Technical Education Commission) and has sent many government officials for training to Harvard University.
The Finance Minister appreciated the proposal of PJBF's Study Group to assess the various aspects of bilateral trade and technical cooperation and hoped that it would lead to a FTA between the two countries. Dr Shah concluded that we are making every effort to introduce a conducive investment environment in Pakistan and hoped that Pakistan Japan Business Forum will be able to guide the government in this direction and assist in boosting trade and investment in Pakistan from Japan.
Earlier, in his welcome speech, Abdul Kader Jaffer, President of PJBF, paid tributes to the Finance Minister and hoped he would continue to play an important role in the future so that the economic reforms and rapid growth of economy would be continued and maintained.
He outlined measures on which the government should take immediate actions. He stated that food inflation was getting out of hand and primarily affecting the poor. There is too much dependence on the bankers and stock brokers who may have boosted the stock exchange and made banks more profitable but has resulted in the neglect of industries.
He also said that it was extremely important that the interim government must set for all some practical guidelines and codes of conduct for a progressive and prosperous Pakistan.
This step will also ensure continuity and sustainability of our economic policies as otherwise we fear that the next government will start off with populist measures and will not be able to digest the hard and painful decisions, nor maintain the economic performance benchmarks set by the government of Mr Shaukat Aziz, under the able stewardship of President Musharraf.
Abdul Kader Jaffer also said that the burgeoning trade deficit was causing grave concern and the government must address this issue and announce measures in the interest of Pakistan. He deplored the various cartels that are blatantly operating to the detriment of the consumers. The Forum does realise the policies of an open economy but some timely measures must be taken to rein in these cartels since Pakistan's interests must be supreme.
He also added that the foreigners visiting Pakistan for FDI face problems of visas, work permits, certification, dispute resolution, arbitration etc. BoI should be given more autonomy and the authority to resolve these issues and provide facilitations as its counterparts in the world do so.
He informed the Minister that PJBF, with approval of both the governments, is now seriously studying in-depth and preparing a report for both Governments as to the impediments foreign and local investors face in investment in seven major industries of Pakistan.
Majyd Aziz, Vice President of PJBF presented a plaque and vote of thanks to the Minister on behalf of the Forum. The meeting was well attended by both Pakistan and Japanese members, especially Consul General of Japan, Mr S Nakano, Mr Sohail P Ahmed, Mr Y. Yamashiro, Mr Mati Zia, Mr Adnan Afridi, (Managing Director, Karachi Stock Exchange, Mrs Azra Ahmed Mr M. Ohira, Mr Ito, Mr K Tamaki JETRO's expert in Pakistan, Mr K Miimi, Mr Pervez Ghias, Mr Robert D Orr, and many others.-PR