KARACHI, April 15: The Japanese ambassador Minoru Shibuya has pointed out that political and security concerns along with tension between Pakistan and India are major hurdle to growth of trade and attracting direct Japanese investment.

Speaking as a chief guest at a ceremony to bid farewell to the outgoing and to install the incoming executive committee of Pakistan Japan Business Forum (PJBF) held on Monday evening at a local hotel the Japanese envoy to Islamabad was candid about his views with regard to factors that discourage Japanese investment.

Responding to repeated criticism that Japanese investment is not forthcoming, Minoru Shibuya suggested early solution, at government and private level, to these problems to attract direct foreign and Japanese investment.

He said current level of trade and investment relation between the two countries are not enough as they do not reflect the real potentials the both sides carry. However, he was sure that once investment friendly environments and security concerns are taken care there would be tremendous growth and expansion in these activities.

Minoru Shibuya said that lately there had been steep fall in direct Japanese investment to Pakistan as it stood at a paltry amount of $6.4 million in the year 2001, compared to $59 million in 1998-99, but slightly improved to $10 million in 2002-03.

The Japanese ambassador put entire blame for negative trade and investment growth on the political situation and security concerns in Pakistan and tension on Indo-Pakistan border.

He lauded the contribution made by Aziz Memon in establishing and achievements of the newly formed PJBF which was founded about two years ago.

The envoy also briefly narrated about the dialogue between Pakistan and Japan which took place in 2001, followed by second round of such dialogue when the President Pervez Musharraf visited Japan and hoped that such parleys would continue in future.

Almost similar views were expressed by the Consul General of Japan Kanji Hanagata who is also ex-officio member of PJBF and hoped that the incoming executive committee would carry out the mission of expanding trade and business opportunities as well as investment between the two countries.

Kanji Hanagata hoped that new executive committee of PJBF will try to overcome hurdles by taking wise and timely decisions. He said the PJBF is faced with new challenges and should sort out these problems under new leadership.

“I advise the government of Pakistan to provide more stable and business friendly environment and should solve problems faced by foreign traders and investment as this was necessary for attracting more investment form Japan and other countries,” he asserted.