Pakistan and Japan enjoy cordial bilateral relations which have grown significantly over the years to the mutual benefit of both the countries. Japan’s economic assistance has helped much in the development of Pakistan’s economic and social infrastructure.
This was stated by Federal Minister for Finance Ishaq Dar while addressing Japanese businessmen at Investment Seminar organised by Japan External Trade Organisation (JETRO) and co-sponsored by the Board of Investment here Wednesday.
Dar said though Japanese auto sector accounts for about 90 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 Programme of FTA.
The 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 needed Japanese technical assistance and investment in renewable energy sources such as solar, wind, thermal and biogas, he added. He hoped that the Japanese companies would tap the potential and would be excited to explore some of these areas for their future investments.
“Pakistan is an upcoming emerging market and 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, he added.
The minister said that Pakistan had one of the most liberal foreign investment regimes in South Asia. 100pc foreign equity was permitted in the manufacture and infrastructure sectors as the country had a market-oriented economy with a rapidly growing private sector, the minister said, adding that Pakistan had a very dynamic market and a large consumer base. “There is great potential in the power, infrastructure and natural resource sectors. There is also scope for investment in hydel and coal-based power projects. Furthermore, there is a need for world class education system and mechanization of industries that, if exploited efficiently, can generate wealth for foreign investors.”
Dar said Pakistan stood on the verge of a momentous transformation. “Our government is fully committed to harness economy through appropriate policies and strategic vision. The government has a long-term development plan aimed at creating a globally competitive and prosperous country, with particular emphasis on achieving macroeconomic stability through inclusive growth,” the minister stated.
He said the present government attached top priority to enhance the performance of the economy for a better Pakistan. “Improved infrastructure, good governance, uninterrupted and affordable energy, quality education and health for all are some of the priority areas we are focusing on,” he added.
