President Asif Ali Zardari Tuesday urged foreign investors and entrepreneurs to take full advantage of enormous potential and opportunities for investment available in Pakistan due to availability of intelligent, trained and hard-working people coupled with vast reservoir of natural resources and liberal incentive packages.
Addressing Japanese business community here at Aiwan-e-Sadr, the President said due to its location at cross roads of Central and South Asia, Pakistan offer a huge markets ffor its products and services The President said that Pakistan's investment policies are investor-friendly and investment in Pakistan will fetch rich dividends.
He said that under the recently enacted, Special Economic Zone Bill, 2012, all capital goods, machinery and equipment will be given one time exemption from customs duties and the entrepreneurs will also be exempted from income tax for ten years, the President said and added that the incentives granted to investors will be protected by law.
The President said foreign investors can invest without any restrictions, they can hold complete ownership of the businesses, can get equal treatment to local and foreign investors and there is free repatriation of profits and capitals.
The President said generous tax and customs incentives for bringing raw materials; plant and machinery into Pakistan are available. He said despite the challenges of terrorism and natural disasters the economy has shown great resilience and steadily the economy is recovering. He said interest rates have come down twice in the past two months and large scale manufacturing has increased this year as compared with last year. He said the services sector has also grown.
President Zardari said Japan is Pakistan's strong development partner and a world leader in innovation and technology. Appreciating Japanese goods, he said these enjoy consumer's confidence all over the world. President Zardari said the year 2012 is a special year for Pakistan- Japan relations as it marks the 60th anniversary of diplomatic relations of the two countries. He said on this occasion, "Let us also pledge to take our relations to new heights". "We can do much more particularly in business, trade and investment" adding that the current bilateral trade is far below the potential and there is a need to increase it.
He said the region is faced with extremism and militancy and the best way to fight extremism is to generate economic activity in the region, adding that poverty and economic deprivation breeds extremism therefore, economic security is the most effective weapon to fight extremism. Referring to regional situation, the President said to ensure peace in the region Pakistan is working with India.
He said, "We have liberalised visa regime. We have improved trade relations. These developments will contribute to stability in the region." The President said the government has launched a major drive against poverty and introduced 'Benazir Income Support Programme' for the poorest that is supporting millions of poor families across the country.
Referring to energy challenge, the President said the government is making sincere efforts to resolve this issue and expressed the hope that it would be resolved. He said, "We are not deficient in energy resources but these resources need to be exploited."
He said solar and wind energy have great potential in meeting the energy crisis adding that Pakistan has abundant sunshine that can be used for power generation. He said, "Our coal reserves of 186 billion tons are ready to be converted into electricity and diesel." He said Pakistan looks towards Japan and Japanese technologies to assist it in meeting the energy challenge adding that it will be a mutually profitable venture.
Referring to the progress of automobile sector of Japan the President said Japan's share in car and truck market is almost 100 percent, and it has almost 50 percent share in the motorcycle market. The President said there in need to increase the share of local contents as Pakistan still imports almost 50 percent of the automotive parts.
He said there is an opportunity for Japanese investors to fill the remaining half, which he said will cut manufacturing costs and enhance profitability. The President said there is also need to expand the co-operation in the field of textile industry as Japanese investors can benefit by using their textile technology in Pakistan.
He said that mineral resources in Pakistan are untapped as Pakistan is blessed with all kinds of precious minerals. Pakistan is exporting almost 170 million dollars of Naphtha to Japan, he added. He asked the Japanese investors to set up a processing unit in Pakistan that will be a win-win situation for both. He also urged the Japanese companies to invest in agriculture sector by bringing in new technologies in water conservation, increasing yield per acre of major crops, introducing new varieties, and converting waste products into value-added items.
Zardari said Pakistan recently concluded Free Trade Agreements with China, Sri Lanka and Malaysia and has Preferential Trade Agreements with Iran, Mauritius and Indonesia. He said Pakistan has also extended its trade relations to the ECO countries and Central Asian Republics.
He said Pakistan-Japan Business Forum need to strengthen its bilateral economic ties. He said work for Free Trade Agreement between the two countries should be expedited. He expressed the hope that holding of this meeting in the Presidency is a demonstration of Pakistan-Japan close relations. "It is also a measure of the importance we attach to the Japanese investment in Pakistan," he added.-PR