ISLAMABAD, Jan 4: Pakistan and Iran have established a joint investment company to carry out business of investment and finance enterprises.

An MoU was signed here on Thursday in the finance ministry. Minister of State for Finance Omer Ayub Khan led the Pakistani side which comprised Secretary of Finance Syed Tanvir Ali Agha and Istaqbal Mehdi while a three-member delegation from Iran’s Foreign Investment Company, headed by its chairman and MD Dr Mehdireza Darvishzadeh, Iranian Ambassador Mashallah Shakeri and Deputy Chairman Syed Mansoor Mir Abedeni were present.

The joint investment company has been sponsored equally by the Ministry of Finance Pakistan and Foreign Investment Company of Iran, and has been established in pursuance of an agreement signed between the two governments at Tehran on Feb 23 in 2005. The registered office of the company shall be in Karachi with its branch in Tehran.

Omer Ayub Khan said it was another step in line with a series of investment agreements signed with a number of countries, including Saudi Arabia, Brunei, and Kuwait.

He said the company had been set up as per agreement reached during visit of Prime Minister Shaukat Aziz to Iran in February 2005 and it would have initial capital of $2500 to be shared by the both countries on equal basis.

Omer Ayub said the company would help in carrying out investment activities in various areas of Pakistan and would also boost existing economic relations between the two countries.

The company may play an affective role for the development of petroleum, infrastructures and power generation sectors.

Besides enhancing business opportunities, the company would accelerate economic activities in both the countries, he said, adding setting up of the investment company would go a long way for creating a new environment of investment, paving the way for employment opportunities.

Chairman of the joint investment company Dr Mehdireza Darvishzadeh said that the establishment of Pak-Iran investment company would contribute towards promotion of economic activities in both the countries.

The economic relations between the two brotherly countries would get a boost, he said, adding, it would contribute a lot for enhancing cooperation between the two countries.

The company can contribute a lot for development of power, petroleum and other sectors of mutual interests.—APP