Pakistan Has Potential to Become Economic Leader in the Region: Czech PM
10 May, 2007
Islamabad: Pakistan's economic achievements are remarkable and the country has the ability and potential to become economic leader in the region. Mr. Mirek Topolanek, Prime Minister of the Czech Republic, while addressing Pak-Czech Investment Conference organized by Board of Investment (BOI) here on Wednesday. He pointed out that a favourable turn in Trade exchanges was evident from three fold increase since 2000-2006 between Czech Republic and Pakistan, which has exceeded US $ 70 million. This increasing trend was witnessed in the first two months of 2007 when Czech exports to Pakistan were worth US $ 11.1 million and imports stood at US $ 8.3 million while an increase of 200 % in Czech exports to Pakistan was expected this year, he stated. Mr. Mirek Topolanek, Prime Minister of the Czech Republic hoped that Trade, Investment and Business relations between both the countries would further grow and strengthened to make Pakistan remain our major Asian partner. Mr. Zahid Hamid Federal Minister for Privatisation & Investment in his welcome address underlined that there existed huge potential to strengthen economic ties between our two countries, especially bilateral trade. Direct interaction between the business communities of both countries will enable them to better understand, and realize, the opportunities and prospects for cooperation in various fields. Bilateral Investment Treaty (BIT) and Agreement for avoidance of Double Taxation between both the countries would be finalized soon, he said. He said that Pakistan would benefit from the Czech's knowledge and expertise in the field of energy in view of our rapidly increasing needs for energy, which has immense potential for cooperation in this field. The Minister appreciated Czech participation through direct capital investment or provision of technical expertise and know-how in various upstream and downstream projects in the Oil & Gas, Mining and Power sectors and welcomed signing of contract by SKODA for supplying machinery for a power project. Pakistan and the Czech Republic enjoy most cordial relations, which continue to grow from strength to strength. He termed Czech PM's visit to Pakistan as an important step towards development and enhancement of these relations, based on mutually beneficial cooperation, especially in the economic field. Elucidating the salient features of economic development under the dynamic leadership of President General Pervez Musharraf and Prime Minister Shaukat Aziz, major economic reforms in Pakistan during the last six years, the Minister said that these reforms based on the three pillars of deregulation, liberalization and privatisation, accompanied by good governance and continuity and consistency of policies have completely transformed the economy and placed on the path of rapid growth. Growth has averaged more than 7.5% per annum during the last three years. The size of the GDP has doubled to $ 130 billion over the last 5 years. Per capita income has doubled to $847. Poverty has declined from 34.5% to under 24% while public debt as percentage of GDP has declined from 96% to under 55%. The Karachi Stock Market has out-performed other emerging equity markets such as Malaysia, India, Indonesia, Egypt and Turkey. He further stated that Pakistan's Privatisation Programme was acknowledged to be the most successful in the region and has gained significant momentum under the present government. During the last 7 years, more than $ 6 billion have been realized from 61 transactions, which is 81% of the total transaction proceeds obtained since establishment of the Privatisation Commission in 1991. Mr. Zahid Hamid added that the Government's investment policy was also one of the most liberal and attractive in the region. There is a level playing field for both foreign and local investors. All economic sectors are open to foreign investors, who can invest upto 100 % equity. No Government sanctions or permissions were required, and remittances of capital, profits & fees were freely allowed and Foreign investment also has statutory protection, which resulted dramatic improvement in Pakistan's economic performance with significant increase by more than 10 times from only $ 300 million in 2000-01 to $ 3.9 billion in foreign investment last year, the highest level in our history and this year foreign investment would again set new records and surpass $ 6 billion, he said. Highlighting the promising areas of investment the Minister said that there were also opportunities for joint ventures in the Information Technology, automotive and precision engineering sectors, as well as in textiles, railways and infrastructure development. Mr. Zahid Hamid proposed an Investment Conference for businessmen from the Czech Republic in Pakistan or in Prague or to send a delegation Czech Republic to explore and identify specific projects of interest and avenues for increased trade. He added that this could lead to a quantum jump in our economic relations, the basis for which has already been laid with the signing of MoU today between the Chambers of Commerce of the Czech Republic and Pakistan. The proceedings of the conference were followed by a Q & A session from the participating leading business groups from both the sides and B 2 B discussions.
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