WASHINGTON, June 27: President General Pervez Musharraf has urged US investors to invest in Pakistan because the country is offering a high return on their investments.

“Those who are already in Pakistan are making 30 to 40 per cent profit on their investment,” said the president while speaking at a dinner at the US Chamber of Commerce in Washington on Thursday.

Pakistan’s economy, he said, was already showing positive indicators and had offered a very conducive environment for investment.

“The GDP growth rate stands at 5.1 per cent despite shocks. Inflation is 3.3 per cent, revenue collection rises by 15 per cent, remittances have doubled, foreign exchange reserves have touched a record $10.5-billion mark, which is equal to one year’s import. The stock market index has touched an all time high of 3,300 — which is a 300 per cent increase.”

The president credited his government’s “prudent economic policies” for these positive developments, adding that there is a need to maintain continuity and consistency in economic policies, for consolidating these gains.

President Musharraf said US-Pakistan relations had entered a new era and a new dimension of economic cooperation had been added to this relationship.

Referring to the signing of the trade and investment framework agreement (TIFA) and the science and technology agreement, the president expressed the hope that it would ultimately lead to a free trade agreement with the United States.

The United States, he said, was Pakistan’s largest trading partner and 41 per cent of foreign direct investment in Pakistan originated from this country.

He urged US investors to further expand trade between the two countries by investing in the fields of information technology, telecommunications, pharmaceuticals, gas, construction, roads, and railways.

The Pakistan government, he said, also had launched a massive privatization programme which offered many opportunities to private investors. The other sectors of interest, he said, could be banking, power generation and petroleum. “We are ready to receive you. Now it is up to you to come forward,” declared the president.

He said the new US policy towards Pakistan also had opened new venues for Pakistani businessmen to enhance their presence in the US market.

Commenting on a recent Time magazine report that Karachi was the world’s most dangerous city, the president said the writers were writing mainly about the events of the past.

“Karachi today is a different place. Shops are open all night and I have seen hundreds of people strolling on the beach at 2 in the morning.” He said for the last 10 months, there had been no major incident of lawlessness in Karachi. The president, however, said that in a city of 14 million people there’s bound to be some violence, but this did not mean that the city was not livable.

“Pakistan today is a much safer place than it was before,” he said while inviting US businessmen to visit Pakistan and explore fields of their interest.

He advised the US State Department to rescind their travel advisory, which warned US citizens not to visit Pakistan.

President Musharraf said Pakistan also had laws for protecting intellectual property, but the enforcement machinery needs to be revamped to implement these laws. He agreed with a questioner that an improvement in relations with India would also improve the business environment in the Sub-continent.

Fortunately, he said indications were that the two countries might soon start the long-stalled dialogue.

“In fact, we have proposed talks, and are waiting for response of the Indian side,” he added.

Earlier Willard A. Workman, senior vice-president of international affairs, US Chamber of Commerce, and Ahmet C. Bozer, chairman US-Pakistan Business Council, welcomed the president and assured him that the chamber would encourage US businessmen to expand their ties with Pakistan.