ISLAMABAD, Nov 19: Pakistan and the Netherlands will work together to support the private sector development by promoting and supporting economic cooperation between business sectors of the two countries on the basis of equal partnership and mutual benefit with a focus on private investments.
The official development assistance will be granted by the Netherlands to provide support to joint Netherlands-Pakistan business projects under the Netherlands' programme for cooperation with emerging markets (PSOM).
"The total budget of the programme is currently 48 million euros per year for 42 countries," says a handout. The average programme contribution per project being in the order of 0.5 million euros allows for an average 2-3 investment projects per country per year.
A Memorandum of Understanding (MoU) to this effect was signed here at the ministry of economic affairs and statistics on Friday. Dutch Ambassador in Pakistan Dr Marcel Kurpershoek and Economic Affairs Division Secretary Shujah Shah signed the agreement on behalf of their respective governments.
Under the programme support will be provided to initiatives of business communities of the Netherlands and Pakistan in setting up joint innovative pilot projects in specific sectors, making use of international and local know-how, goods and services.
The two countries have agreed to focus more on the development and the implementation of projects in agriculture and agri-business, water supply and resource management and environmental management (cleaner production, etc). However, good projects in other sectors will also be given due consideration. In all sectors specific attention will be given to corporate social responsibility issues.
These projects will be creating substantial local employment, transferring knowledge, making extensive use of local SMEs in the supply chain, operating in geographically disadvantaged regions, and generating income for a substantial group of beneficiaries. The business projects will contribute to poverty alleviation.
The Netherlands has initiated the PSOM in order to share some of the initial financial risks that companies face when investing in new products and/or technologies in emerging markets in developing countries.
Speaking on the occasion, Shujah Shah said the government was focusing to facilitate the private sector and enable it to lead the economic and social growth of the country.
"In this respect efforts are being made to create the necessary linkages and partnerships with various countries which are required for fast growth. The MOU signed today will contribute to the strengthening and widening of economic cooperation between private sectors of Pakistan and the Netherlands," he added.
The Dutch ambassador said his country was keen to expand trade and business relations with Pakistan. -APP
