ISLAMABAD, Nov 2: The second round of negotiations between Pakistan and Canada for a ‘Foreign Investment Promotion and Protection Agreement’ (FIPA) ended here on Wednesday with a resolve to sign the treaty early next year which would lead to reduce barriers to investments.
Senior officials of the two countries met in Islamabad from October 31 to November 2 at the Board of Investment (BoI) for the second round of the negotiations, a process which had commenced in Ottawa in April this year.
Officials hope the two countries would sign the treaty after the third round of talks which is scheduled to take place in Ottawa in 2012.
During the negotiations the officials of the two countries made significant progress on the provisions of the agreement and decided to continue consultations, according to an official statement released by the BoI at the end of the talks.
The objective of the bilateral investment treaty is to enhance the flow of investment between the two countries by providing a stable and predictable investment climate.
The objective of Canada in entering these negotiations is to secure a comprehensive, high-quality agreement which will protect investors through the establishment of a framework of legally binding rights and obligations.
The stock of Canadian direct investment in Pakistan was $54 million at the end of 2010. Key sectors of interest are minerals, information technology and infrastructure.
Pakistan is one of only 20 countries of concentration for Canada’s bilateral development cooperation around the world. The Canadian programme is focused on education, with an emphasis on teacher training, and sustainable economic growth, particularly women’s economic empowerment.
The joint venture of a Canadian–Chilean firm, Tethyan Copper Company (TCC), has proposed a copper and gold mining investment at Reko Diq of over $3 billion, which would make it the largest foreign investment in Pakistan’s history. The Pak-Canada bilateral trade reached $820 million last year.
