Pakistan is fast attaining the status of Business Opportunity Zone (BOZ) for potential foreign investors because it is not only the energy sector where investments would earn rich dividends but huge untapped mineral resources of trillion of dollars worth are a great attraction for foreign businessmen. This was stated by LCCI President Irfan Qaiser Sheikh while talking to Canadian Asia division Analyst Christopher Martin, First Secretary Canadian High Commission John Gosal and Director Asia division Elyas Irfani on Saturday. LCCI Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar also spoke on the occasion and gave their point of view on country’s economic strengths and weaknesses. The LCCI President informed the visiting delegation that the agriculture sector also offers a huge potential particularly any investment made in livestock and dairy sectors is bound to make big gains.
The LCCI President said that economic indicators were fast turning positive, law and order situation is also becoming satisfactory while investment climate is picking up with every passing day. The availability of cheaper skilled and unskilled labour, low priced land as compared to other regional countries and an infrastructure of international standards would definitely create a win-win scenario for global investors. Irfan Qaiser Sheikh urged the Canadian officials to send a business delegation to Pakistan so that it could have first hand knowledge about the available opportunities here as the Lahore Chamber of Commerce is planning a sector-specific delegation to Canada in coming months. Talking about MFN to India, the LCCI President said that Pakistan and India have much more to gain from improved bilateral trade. But the caveat is that the trade between the two countries is hassle-free, barrier-less and removed from historical baggage. In the presence of Core Issues between the two countries and Indian NTBs, the desired economic results would be a day dreaming. Pakistan government would have to ensure a level playing field. Quoting an example of electricity tariff, the LCCI President said how industry could remain competitive at high price of electricity when in India, for industry it is 10.5 cents, in Bangladesh 10.75 cents and Sri Lanka it is 10.75 cent. In Pakistan tariff is already 15 cents meaning that 45 per cent higher as compared to the region. The LCCI President made it clear that Pakistan government would have to address the concerns of the local manufacturers as a number of sectors including pharmaceutical, automobile, motorcycle, petrochemical, autoparts, sugar, textile, cooking oil and ghee industries have genuine reservations. Over the Gas shortage, Irfan Qaiser Sheikh said that the completion of Iran-Pakistan Gas pipeline project and the establishment LNG terminals in Karachi in another two to three years down the line would be a good breakthrough.
He said at present, the official trade between the two countries is far below the true potential. Most of the Pakistan-India trade takes place via third countries, like Dubai. Transportation and communication links are far from being efficient. Pakistan and India together form the most populous and contiguous consumer market of world. Over 1.4 billion people or around 86 percent of South Asian population lives in these two countries. Two economies represent almost 95 percent of the South Asian GDP. The combined world trade of both countries stands around US$682 billion while their current official bilateral trade is still below US$2 billion. India exported over US$251worth of goods and service in 2011. Imports into India increased to US$370 billion last year. The value of Pakistan’s international trade is less than one tenth of India’s global trade. Pakistan’s exports increased top over US$25 billion first time in 2011. Imports into Pakistan increased to over US$35 billion last year. This is around two percent of international trade and 0.4 percent of their combined world trade. Such a large market size can be a long-term source of economic growth for both the countries.
