ISLAMABAD: Huge potential exists for cementing 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.
While addressing Japanese businessmen at an investment seminar, Finance Minister Muhammad Ishaq Dar lauded Japan’s economic assistance to Pakistan and highlighted potential areas of investment to further boost the mutual economic relations between the two countries.
The seminar was jointly organised by Japan External Trade Organisation (JETRO) and co-sponsored by Board of Investment.
The minister pointed out that Pakistan also needed Japanese technical assistance and investment in renewable energy sources such as solar, wind, thermal and biogas. He hoped that the Japanese companies would tap the potential and explore some of these areas for their future investments.
Dar said that Pakistan was an upcoming emerging market and many multi-national enterprises had made profits in recent years. Dar said the World Bank had projected that the investment growth rate in Pakistan, which declined for several years in the past, would rise during 2014-16.
He said Pakistan had one of the most liberal foreign investment regimes in South Asia. Hundred percent foreign equity was permitted in the manufacture and infrastructure sectors as the country had a market-oriented economy, with a rapidly growing private sector.
He said Pakistan had a very dynamic market and a large consumer base. There was great potential in the power, infrastructure and natural resource sectors. There was also scope for investment in hydel and coal based power projects. Referring to cordial bilateral relations between Pakistan and Japan, which have grown significantly over the years, he said Japan’s economic assistance had helped much in the development of Pakistan’s economic and social infrastructure.
Dar said though Japanese auto sector accounted for about 95 percent in the four-wheeled vehicle market and had a great influence on Pakistan’s economy but bilateral trade volume between Pakistan and Japan had been stagnant for the past five years.
“It is also heavily in favour of Japan which needs to be addressed through initiating negotiations for Early Harvest Program of Free Trade Agreement (FTA),” he added. The minister said there was a need for world class education system and mechanisation of industries that, if exploited efficiently, could generate wealth for foreign investors.
He mentioned other important achievements of the government including raising $2 billion through Eurobond after seven years, $1 billion through entry into International Sukuk market after nine years and successful auction of 3G-4G licenses to raise nearly $1.2 billion besides two more 3G-4G licenses were still available for auction.
