LAHORE – Austrian Ambassador Axel Wech has expressed hope that Pakistan is poised to receive GSS plus status in the next EU-Pakistan summit. The Generalised System of Preferences, or GSP, is a formal system of exemption from the broader rules of the World Trade Organisation (WTO). The ambassador was speaking at the Lahore Chamber of Commerce and Industry (LCCI). The body’s President Shahzad Ali Malik, Austrian Trade Commissioner Dr Wolfgang Penzais, Representative of Austrian Trade Commission in Karachi Saleem Hashmi, Honorary Consul Sarmad Amin also spoke on the occasion. The ambassador assrted that there was a great potential for stronger economic and trade ties between Pakistan and Austria and the LCCI must play an effective role in raising the existing volume of bilateral trade for the benefit of both nations.
Expressing concern over the existing level of bilateral trade, the Austrian diplomat suggested that frequent exchange of trade delegations, single country exhibitions and Country Weeks could prove vital to strengthen bilateral trade. He said that the Austrian Government was ready to provide assistance to the potential businessmen. He also informed the LCCI office-bearers that a number of projects for strengthening Pakistan Railways infrastructure are in the pipeline and with the execution of these projects, trade relations between the two countries could reach new heights. He said that Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies.
He also noted that the country has drawn an influx of foreign investors attracted by Austria’s access to the single European market and proximity to major EU economies. To meet increased competition from both EU and Central European countries, particularly new EU members, Austria is emphasising knowledge based sectors of the economy by deregulating its service sector. He said that Austrian businessmen were interested to initiate joint ventures with their Pakistani counterparts as the country is fast becoming the hub of economic activities due to its strategically important location and access to cheaper raw materials and labour.
Speaking on the occasion, the LCCI President Shahzad Ali Malik invited Austrian businessmen to initiate joint ventures with local industrialists on 100 percent equity basis. He said that such experiences have been very successful in Pakistan such as in the case of Suzuki, Hyundai, Hino Pak, Nissan, Dong Feng, Master, Isuzu in the transport sector, Massey Ferguson Tractors in the agriculture machinery sector and Schering, Glaxo,Pfizer, Abbot and Searle in the pharmaceutical sector. Pakistan has a liberal investment policy and there is no restriction on sending back the principal, dividends, profits and royalties.
He noted that despite the fact that Pakistan has abundant natural resources and skilled manpower it lacks technology. It is a gateway to the markets of Central Asian Republics and the Gulf countries. Construction industries have attracted huge investment in Pakistan over the last couple of years.
