The Austrian Ambassador Axel Wech, while speaking at the Lahore Chamber of Commerce on Tuesday, said that Pakistan is likely to win GSP plus status in next EU-Pakistan summit as the things to this regard are moving in right direction.
While addressing at the Lahore Chamber of Commerce and Industry on Tuesday, the Ambassador said that there was a great potential for stronger economic and trade ties between Pakistan and Austria and the Lahore Chamber of Commerce and Industry could play an effective role in multiplying the existing volume of bilateral trade for the benefit of both the nations.
Expressing concern over the existing level of two-way trade, the Austrian diplomat suggested that frequent exchange of trade delegations, single country exhibitions and Country Weeks could prove vital to strengthen bilateral trade. He said that the Austrian Government was ready to provide assistance to the potential businessmen. He also told the LCCI office-bearers that a number of projects for strengthening Pakistan Railways infrastructure are in the pipeline and with the execution of these projects the trade relations between the two countries go to new heights. He said that Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany.
He said that the country has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the Major EU economies. To meet increased competition from both EU and Central European countries, particularly the new EU members, Austria is emphasising knowledge-based sectors of the economy by deregulating the service sector, he maintained. He said that Austrian businessmen were interested to initiate joint ventures with their Pakistani counterparts, as the country is fast becoming the hub of economic activities due to strategically important location and cheaper raw material and Labour.
Speaking on the occasion, the LCCI President Shahzad Ali Malik invited Austrian businessmen to initiate joint ventures with local industrialists on 100 percent equity basis. He said that such experiences have been very successful in Pakistan, eg, Suzuki, Hundai, Hino Pak, Nissan, Dong Feng, Master, Isuzu in the transport sector, Massey Ferguson tractors in the agriculture machinery sector and Schering, Glaxo, Pfizer, Abbot and Searle in the pharmaceutical sector.
Pakistan has a liberal investment policy. No sanction is required. There is no restriction on sending back the principal, dividends, profits and royalties. He said that despite the fact that Pakistan has abundant natural resources and skilled manpower it lacks technology. It is a gateway to the markets of Central Asian. He said that Austria has highly advanced industries such as construction, machinery, chemicals, vehicles and ports, food, lumber and wood processing, paper and paperboard.
There are immense possibilities of gains for Austrian investors in setting up these industries in Pakistan. He said that it is time to tell the Austrian industrialists and businessmen to invest in Pakistan as the output of any investment made in Pakistan would not remain confined to Pakistan only would find its market in the Central Asian Republics and Gulf States. Austrian Trade Commissioner Dr Wolfgang Penzais, Representative of Austrian Trade Commission in Karachi Saleem Hashmi and Honorary Consul Sarmad Amin were also present on the occasion.