Incentives ensure high return on investment: PM address to HK traders
HONG KONG, April 26: Prime Minister Mir Zafarullah Khan Jamali on Monday invited businessmen from Hong Kong to invest in Pakistan, saying with its lucrative incentives
, the country promises high return on investment in diverse sectors.
Announcing a special package for businessmen from Hong Kong at an investors conference here, he offered an exclusive economic and industrial zone, unleashed plans for a "Digital City" and encouraged banks to launch operation in Pakistan.
Jamali asked the businessmen from Hong Kong to utilize Pakistan's excellent telecommunication and IT infrastructure, English speaking skilled workforce to relocate their operations in Pakistan.
He also sought cooperation in cross listing of Hong Kong based firms and corporations at the Karachi Stock Exchange. Pakistani stock market had shown an unprecedented increase of 73.1 per cent and the KSE is the sixth best performing stock market in the world, he said.
Prime Minister Jamali, accompanied by Minister of Information, Shiekh Rashid Ahmed, Minister for Petroleum Nauraiz Shakoor and Minister for Investment Abdul Hafeez Sheikh, addressed the gathering of CEO's of multinational companies and prominent businessmen from Hong Kong.
Prime Minister Jamali said Pakistan was determined to build strong economic and cultural links with the regions of North and East Asia. "Our Vision East essentially encompasses the development of multifaceted cooperation with all countries of this region," he said.
He said there was a tremendous scope of expanding Hong Kong's investment in Pakistan especially in areas of banking, telecommunication and textiles, besides engineering goods, agriculture and agro-based industry, food and fruit processing, oil and gas, mining, infrastructure, IT and power.
He also highlighted the country's aggressive privatization policy which offers highly profitable investment opportunities in the oil and gas, banking, power generation and distribution, IT and telecom, gas transmission and distribution sub-sectors.
Jamali called for close collaboration between the private sectors, which he termed as the only effective means of benefiting from the opportunities that exist in today's globalized world.
The Prime Minister said there were limitless possibilities for forging mutually beneficial cooperation between the private sectors of Hong Kong, China and Pakistan.
He dwelt at length over the strong signs being shown by Pakistan's economy in recent years. He said the international ratings have improved significantly with a GDP growth rate of over 5.5 per cent which is targeted at over 7 per cent in the next couple of years.
He said growth in industrial production has surpassed 9 per cent, agriculture production rose to 4.3 per cent, exports during July-February have registered an increase of 13.8 per cent, home remittances are around $3.6 billion, and foreign investment touching the $1 billion mark with robust foreign exchange reserves.
Jamali said market capitalization in Pakistan stock market had increased from $13 billion to $22.5 billion. Pakistan, he said, has also issued $500 million worth of Eurobonds attracting strong demand, leading to a four times over subscription. This he said reflected strong confidence by the international community in Pakistan growing economic stability.
He said the macroeconomic stability achieved by Pakistan is the result of sustained efforts at reform with an incessant consultative process between the government and the stakeholders.
The Prime Minister told the gathering about the reforms, the government has undertaken in the tax system, fiscal management, trade, banking, intellectual property rights, fiance and capital markets.
He said besides attractive incentives and tax concessions, nearly all sectors of economy were open to foreign direct investment and the investors were allowed to hold 100 per cent ownership.
The Prime Minister assured them that foreign investment in Pakistan was fully protected under the law and the repatriation of capital and profits was freely allowed.
He said China was one of the most important sources of investment in Pakistan. More than 50 Chinese companies in oil and gas, IT and telecom, power generation, engineering, automobile, infrastructure and mining sectors were operating in Pakistan.
Prime Minister Jamali said Pakistan's strategic location at the crossroads of Central and South and West Asia, with its liberal investor-friendly regime makes it an attractive destination for Hong Kong based businesses.
He said stability in Afghanistan would lead to more investment opportunities in Central Asian republics. Prime Minister Jamali also allayed the perception of businesses as if Pakistan was not a secure place for investment. "Stray incidents happen anywhere in the world, even in the most developed countries of the world."
He assured that the government had taken up this issue as a challenge and taken all steps to ensure provision of security for all businesses. He said it is time that the true potential of Asia is realized. He said, "we need to look to the east as it is where the sun rises."
Prime Minister Jamali is on a four-nation tour of South East Asian countries. After visiting Laos, as the first Pakistani leader, he addressed the Boao Forum for Asia 2004 and will leave for Phonm Penh on Tuesday. -APP
