Argentina offers huge opportunities to Pakistani businessmen particularly in Livestock, Agriculture and CNG sectors therefore they can initiate Joint Ventures with their counterparts in Argentina in these sectors. This was stated by Argentinean Ambassador Mr Rodolfo J Martin-Saravia while addressing a meeting at Lahore Chamber of Commerce and Industry. LCCI Senior Vice President Kashif Younis Meher presented the welcome address.
Mr Rodolfo, who spent well over an hour at LCCI, highlighted a number of issues hampering bilateral trade between the two countries and forwarded various proposals to boost two-way trade. Ambassador also promised to extend technical assistance to Pakistan in agriculture in general and for plantation of soybean crop in particular; since the country is the biggest grower of soybean while Pakistan is the largest consumer of this commodity. Ambassador said that there are a number of other sectors including CNG in which Pakistani businessmen could learn from Argentina’s experience. Speaking on the occasion, LCCI Senior Vice President Kashif Younis Meher said although Pakistan and Argentina enjoy friendly relations but trade between the two countries is minuscule. Argentina’s major trading partners are USA, Brazil, Chile, China and Germany. Trade between Pakistan and Argentina, over the last five years, has averaged around $68.72 million. First priority is to increase the volume of bilateral trade while after the increase, measures would be taken to turn it into a win – win situation for both countries.
LCCI Senior Vice President Kashif Younis Meher said Pakistan and Argentina, signed formal agreement in 2002 giving MFN status to each other, could not attain the desired level of economic relations. Figures of bilateral trade of last three years further validate the statement. In 2008, two-way trade between Pakistan and Argentina stood at $244 million which fell to $117 million and $ 115 million in 2009 and 2010 respectively.
He said Pakistan’s exports to Argentina did not make any significant improvement except regaining its previous level. In year 2008, exports stood at $51 million which dipped to $31 million in 2009 but bounced back to $52 million in 2010. In the same period of time, imports from Argentina drastically dropped from $193 million to $63 million. In fact that has caused downturn in overall trade volume between Pakistan and Argentina. He said Pakistan mainly exports manmade staple fiber, cotton, toys, sports goods, textile articles, manmade filaments, technical and medical apparatus, plastic products, etc to Argentina. Whereas our major imports from Argentina include animal and vegetable fats/oils, pharmaceutical products, raw hides and skins, leather, articles of iron or steel, seed, fruit and cereals etc. He said Argentina is a major producer of cotton, soybean and sunflower seeds. Argentina has expertise in areas like edible oil, iron and steel, CNG, pharmaceutical products, chemicals etc. Pakistan offers lots of investment potential in these sectors. Argentina ranks among the top users of CNG in the world and it is the major producer and exporter of CNG cylinders, car kits, CNG station compressors and dispensers. Some Argentinean companies have also expressed their interest in exploration and development of gas fields in the Pakistani provinces of Balochistan and Sindh. Earliest possible arrival of these companies to Pakistan will be of greater benefit to both of us. He said both countries should work on establishing stronger trade links between two countries and explore further areas of joint ventures in those industries that are based on CNG sector, soybean, edible oil etc.
While briefing about business atmosphere in Pakistan, LCCI Senior Vice President informed the ambassador that government of Pakistan has adopted a liberal investment policy to attract maximum foreign investment where foreign investors could hold up to 100 per cent equity. There is no restriction on sending back the principal, dividends, profits and royalties. Argentina is a major producer of soybean and sunflower seeds and cotton. Argentina can optimise its benefits by establishing value addition industries based on soybean, sunflower and cotton. There is a huge market for edible oils in Pakistan.
