"Japanese investors are reluctant, rather scared to pour investments in Pakistan, due to poor law and order and bad infra-structure in Pakistan on the one side and global recession on the other", Masabaru Sato, Consul General of Japan, Karachi told Business Recorder at an event held here recently.
"Japanese investors are hesitant to be the part of Japan Special Economic Zone (JSEZ) because of prevailing law and order situation in the country, global economic meltdown and poor infrastructure facility at the site allocated for JSEZ at Port Qasim". "Adverse reports are one of the chief causes that sent a bad signal to Japanese investors, albeit the situation is not as bad as is being projected," he lamented.
To a question, he dispelled the impression that the JSEZ, a worthwhile multibillion dollar project, is going to be shelved, saying that the project would not be rolled back but might be delayed as they are awaiting things to get well.
Consul General of Japan also expressed concern over slow progress for infra-structure development at site, saying that although the government of Pakistan has offered some 1900 acres land at Port Qasim, no infra-structure development work is being taken place at the place.
On the other hand, Muhammad Zubair Motiwala, Chairman, Sindh Board of Investment (SBI) said the progress in infra-structure development has not been expedited as the government did not receive any written commitment from Japan with regard to investments.
Moreover, he said China and Korea are keen to invest in the country and this project might be transferred to them, if the Japan did not take interest in the project.
He said some 22 Japanese companies are engaged in Pakistan as we offered best incentives for investments including 100 percent equity, free flow of money with remittance of royally and technical fee.
Meanwhile, Abdul Kader Jaffar, president, Pakistan-Japan Business Forum informed this scribe that a large Pakistani delegation is going to fly Tokyo to meet with Japanese authorities on March 21-22. He said the visit is aimed at convincing Japanese authorities to bring investors in the country. Needless to mention, the Pakistani authority besides allocating some 1900 acres land for JSEZ in the vicinity of Port Qasim, 17km far from Pakistan Steel Mill, has also offered 10-year tax holidays to attract the Japanese investors. The understanding between Japan and Pakistan for establishing JSEZ was developed in May 2009 at Tokyo but the Japanese investors seem frightened to invest in Pakistan because of aforesaid reasons, leaving the project at uncertain state.