THE high profile International Chamber of Commerce (ICC) Foreign Direct Investment Conference, which is scheduled for 17th and 18th of this month in Karachi, has been billed as an important platform for ensuring equity infusion needed to rid off the burden of debt.

While launching the planned conference here on Thursday, the ICC’s Pakistan chapter chief, Tariq Rangoonwala, said the conference will address key issues related to attracting foreign direct investment.

The importance of the new window of opportunity for Pakistan to attract foreign investment was evident from the fact that the US Consul in Karachi, John K.Bauman, and the Sindh Minister for Finance, Dr Hafiz Shaikh, were present and lent support to the initiative.

The US Consul General commended the initiative and said that the planned visit by a high profile investors delegation would mean tremendous opportunities for Pakistan, especially after the lifting of sanctions.

He said that these people were planning to visit Pakistan by the end of February, but due to this conference they have changed their itinerary and will make the visit to attend this conference on February 17. Tariq Rangoonwala said that some of the objectives of the ICC Conference is the ratification and enforcement of the international agreements and conventions signed by Pakistan, the ratification and implementation of which will not only open up the region and Pakistan for trade and transport but will also result in being a destination for major foreign direct investment hitherto unmatched in its magnitude.

These include the New York Convention, the Istanbul Convention, The TIR Convention, and the Trips Agreement on Intellectual Property Rights and Copyrights.

The New York Convention 1958 relates to “the recognition and enforcement of Foreign Arbitral Awards”. Of the 127 countries that have signed Pakistan is the only country that has not ratified and enforced this convention although Pakistan was amongst the first to sign it in 1958.

This convention basically allows for the enforcement of awards of arbitral courts once joint venture partners or foreign investors and their local partners or organizations agree to enter into mutually designated arbitration. It becomes incumbent on the local judiciary to enforce the award of an international arbitral court. This is an essential legal requirement that lawyers for foreign investors look for when they invest overseas. The ratification and enforcement of this convention will also eventually allow for foreign arbitral benches to be established in Pakistan for cases originating in other countries. Pakistan’s cases go overseas and in return our legal community does not get Pakistan’s share of overseas cases.

The Istanbul Convention relates to the ATA Carnet System: Pakistan is a contracting party to the World Customs Organisation (WCO) and to the WCO Convention on temporary admission also known as the Istanbul Convention, since June 25th 1991. Pakistan has not yet deposited with the WCO its instruments of ratification or accession to the Istanbul Convention and its various Annexes.

The ATA Carnet System is an instrument for the promotion of international trade.

a. The ATA Carnet System does away with the need for a customs document at each border point. It provides temporary duty-free importation facilities.

b. All goods accompanied by an ATA Carnet are covered by the international surety furnished by the guaranteeing / issuing organization.

c. ATA Carnet eliminates the need for a personal or real guarantee at border points.

The benefits of the above will not only accrue to our exporters but will also allow easier entry for professionals along with their instruments and equipment. This System will result in an increase in the number of international exhibitions of machinery, equipment and other high value goods. Most importantly it will also facilitate cross-border and transit trades.

The TIR Convention 1975: This is for the facilitation of transport and trade between countries using our territory as a transit point. It is a way to seal goods in order to apply the transit bond note system to transport operations and to enable customs formalities applicable to import goods to take place at destination rather than at the border. Implementation of this convention is necessary to realize the regional and geographic advantage that Pakistan offers and can earn not only much needed foreign exchange revenue but will also as a result attract international investment in infrastructure and services.

The TRIPS Agreement on IPR and Copyrights is well known and the government of Pakistan is fully aware of its advantages in terms of attracting foreign investment but in IT and software sectors. Early implementation to the TRIPS Agreement will lead to the development of the entertainment sector as a major revenue contributor. This agreement will also protect the rights of Intellectuals and Artists.

The conference modules focus on areas that are essential to stabilise the business environment and increase the pace of growth and development in our region and globally.

A session on privatization, deregulation and liberalization will look at how foreign direct investment can be encouraged towards the privatization of state enterprises in Pakistan as well as the methodology of privatization. Speakers in the session include Ross J. Conelly, OPIC and James Lambright, US EXIM Bank.

The session on energy looks at the issue of Pakistan’s numerous untapped gas fields and at the same time a huge unfulfilled demand. The session will also focus on the questions relating to transnational eastbound gas pipelines from West and Central Asia and it’s feasibility. The participation of senior policy makers, legal experts and regional investors promises to make the ICC Conference a forum for interaction and exchange of ideas, issues and ground realities as well as a landmark event for the region’s future development.