TOKYO: Japan’s economic assistance has helped much in the development of Pakistan’s economic and social infrastructure, boosting bilateral relations between the two countries as well.
This was stated by Federal Minister for Finance Ishaq Dar while addressing Japanese businessmen at Investment Seminar organized by Japan External Trade Organization JETRO and co-sponsored by Board of Investment.
Dar said that though Japanese auto sector accounts for about ninety five percent in the four-wheeled vehicle market and has a great positive influence on Pakistan’s economy but bilateral trade volume between Pakistan and Japan has been stagnant for the past five years. It was also heavily in favour of Japan which needs to be addressed through initiating negotiations for Early Harvest Program of FTA.
Highlighting the important achievements by the PML-N government, the Finance Minister said that the government had raised US$ 2 billion through Eurobond after 7 years; US$ 1 billion through International Sukuk after 9 years; successful auction of 3G-4G licenses. Nearly US$ 1.2 billion were raised and two more licenses are still available for auction. Then there has been resumption of program lending by World Bank and ADB that has enabled us to access some US$ 1.5 billion from these institutions during the year. He also hinted at construction of terminal at Port Qasim to import LNG, which will likely receive LNG soon.
The Finance Minister said that PML-N government would welcome the initiative of establishing Japan Specific Economic Zones and will facilitate the establishment of entrepreneurship in all respects.
The Finance Minister said that huge potential exists to further strengthen economic ties between Pakistan and Japan as Pakistan offers a big market for investment in energy, automobile, textile, surgical equipment, infrastructure, engineering, agriculture and SMEs.
Pakistan also needs Japanese technical assistance and investment in renewable energy sources such as solar, wind, thermal and biogas. He hoped that the Japanese companies will tap the potential and will be excited to explore some of these areas for their future investments.
Pakistan is an upcoming emerging market. Many multi-national enterprises made profits in recent years. This has encouraged other enterprises to expand their investments in Pakistan. The World Bank has projected that the investment growth rate in Pakistan, which declined for several years in the past, is projected to rise during 2014-16.
Finance Minister said that Pakistan has one of the most liberal foreign investment regimes in South Asia. 100% foreign equity is permitted in the manufacture and infrastructure sectors as the country has a market-oriented economy, with a rapidly growing private sector.
