KARACHI, Jan 26: Investment and Privatization Minister Dr Abdul Hafeez Shaikh on Monday said the government planned to attract $1 billion foreign investment during the year 2004.

He was talking to participants of the International Trade and Industrial Fair (ITIF) organized by the ministry of privatization and investment in collaboration with E-Commerce Singapore here at the Expo Centre.

The minister said that $800 million foreign investment was made last year in Pakistan. "We want to attract more foreign investment in the country," he said. Mr Shaikh said foreign exchange reserves were at record levels, the stock market was also performing well while other sectors of the economy had also showed good progress.

He said the government was giving incentives to textile and agriculture sectors mainly because they were backbone of economy. He said infrastructure facilities were also being improved to facilitate investment.

Dr Hafeez said the fair would help build the confidence of foreign investors to visit Pakistan. Earlier, Sindh Governor Dr Ishratul Ebad inaugurated the three-day exhibition.

A large number of companies from within the country have set up stalls in the fair. A number of foreign countries, including Korea, Japan, Germany, Italy, Ukraine, Saudi Arabia, the UAE, China and Singapore, have also established stalls of textile, leather and engineering manufacturing.

Talking to reporters, the Sindh governor said the fair would boost economic activities in the province, especially in Karachi. "With the improvement of our perception the chances of investment, especially by foreign investors will brighten."

He said: "Interaction between our business community and foreign business people will also help transfer of technology, resulting in the improvement of our products."

The governor said many multinational companies were expanding their existing organizations, while new institutions and investors were also coming to the fore.-APP