“Pakistan’s liberal investment policies and growth potential offers tremendous strategic opportunities for Japanese investors in different sectors of economy”, this was stated by Dr. Abdul Hafeez Shaikh Finance Minister of Pakistan while speaking at a MIGA lunch hosted in his honor where more than thirty representatives of the top Japanese companies participated.
He said that MIGA (Multilateral Investment Guarantee Agency) is an important component of World Bank Group, promoting investment and prosperity.
“We enjoy good political, economic and cultural relationship with Japan, both the countries are collaborating in many projects from textile to mining”, the Minister said, according to a press release received here from embassy of Pakistan in Tokyo. He paid tributes to the Japanese people and government for introducing latest technology and management skills to Pakistan.
Dr. Shaikh said that Pakistan is undergoing a transition, “now we have a democratic government which for the first time in the history of Pakistan is going to complete its full tenure and we are going next year in an election phase, this is a good omen for development and prosperity for the people of Pakistan, he added.
He said that all the institutions in Pakistan are working freely in their respective spheres. Judiciary is performing independently media is free and vibrant, there are about 88 TV channels openly criticizing the government policies. All the actions of the government are exposed for close scrutiny of the media. It shows the strength of Pakistani society.
Highlighting the economic situation of Pakistan, the Minister said that measures are being taken to bring macroeconomic stability in the country hence we tried to remain fiscally austere.
He said that despite various constraints, the government is trying to mobilize the resources. In the last two years the government has doubled the tax collection. This year the growth rate is expected to be around 4% and we have succeeded in bringing the inflation to a single digit, the Minister added.
Dr. Shaikh said that the government has adopted an open door Investment Policy where all investors are welcomed. He said that Pakistan’s political leadership including the President, Prime Minister and the Ministers are all available to the investors for all the time.
Answering to the questions of the participants the Minister said that relations with India are improving. Both the countries adopted opening up economic policies. Pakistan has granted India the MFN status, the positive list has been abolished and now we have open visa policy for businessmen from both the countries. Joint ventures like electricity from East-Punjab to West-Punjab are also under consideration to be launched very soon. He said that Pakistan offers a good opportunity for investment to the Japanese entrepreneurs in Coal, Solar and Wind energy projects. He also offered special economic zone to Japanese Investors in Pakistan. The MIGA-event also included exhibitions of Pakistan carpets, Pakistani honey, rock salt and food products.
Earlier Izumi Kobayashi CEO and Executive Vice President of World Bank Group MIGA welcoming the Finance Minister Dr. Abdul Hafeez Shaikh said that our mission is to promote foreign direct investment in to developing countries to help support economic growth, reduce poverty and improve people’s lives. In Pakistan we strongly focus on to create jobs and reduce poverty. We are coordinating hydropower projects in Pakistan to address its energy needs.
Federal Minister for Finance Dr. Abdul Hafeez Shaikh also participated in G-24 Ministers meeting. The implications of the development in the global economy IMF quota reforms and infrastructure finance and development were thread barely discussed. Minister also held a meeting with Mr. Masood Ahmed, Director MCD, Ms. Daniela Gressani, Reviewer, IMF and Ms. Isabel Guerrero, Vice President, South Asian Region, World Bank and discussed the issues pertaining to Pakistan’s economy.
