ISLAMABAD, April 29: Pakistan and Japan on Monday formally signed and exchanged official notes to effect bilateral agreement on promotion and protection of investment between the two countries.

The agreement was signed in Tokyo on March 10, 2002 and it will enter into force on May 29, 2002.

Secretary Industries and Production Dr. Akram Sheikh and Ambassador of Japan in Islamabad Sadaaki Numata signed the diplomatic notes on behalf of the two respective governments.

Special Envoy of the prime minister of Japan and President Japan-Pakistan Parliamentary Friendship League Mitsuo Horiuchi, Minister for Commerce and Industries and Production Abdul Razak Dawood were also present at the signing ceremony.

The agreement aims at restoring the investor’s confidence and creating more conducive environment to further stimulate and accelerate the flow of capital and technology from Japan to Pakistan in various sectors of the economy.

Under the agreement each contracting party shall, subject to its rights to exercise powers in accordance with the applicable laws and regulations, encourage and create favourable conditions for investors of the other contracting party to make investment in its territory and subject to the same rights shall admit such investment.

Japan is among the top 10 investors in Pakistan and invests around $30 million annually. The cumulative total investment since 1989 amounts to $339.7 million.

The major sectors of Japanese investment in terms of the number of Japanese joint venture projects are automobile including motorcycles and automobiles related sector, financing and power generation.