ISLAMABAD, Oct 13: Pakistan and Canada on Monday agreed to enhance bilateral trade, economic cooperation and set up inter-governmental commission between the two countries for implementation of decisions and strengthening economic ties.
Canadian Industries Minister Allan Rock, however, said that law and order situation in Pakistan remained a major challenge for the foreign investors but investment was poised to pick up in view of efforts being made by the government.
Speaking at a joint news conference with his counterpart Liaquat Ali Jatoi, Mr Rock said it was his understanding that the government of Pakistan was making all out efforts to improve the law and order situation in the country.
He said a number of Canadian companies, including Nortel Telecommunication, were active in Pakistan and working in the challenging environment that suggest that law and order situation was as such no threat to the foreign investment.
In reply to a question, Mr Rock said that the prime concern or what the Canadian investor would be looking in Pakistan would be stable environment, which had significantly improved and was becoming more conducive for the investment.
He said both Pakistan and Canada should try to increase the economic and trade relations between the two countries. “We generally agree on enhancing trade and economic relations between the two countries and facilitate more joint ventures in the times to come,” he said.
He said during his visit the Canada-Pakistan Business Council had been revived and it could play an active role in promoting business interests of the two countries in each other’s market. The Canadian minister said that Canada would like to provide Pakistan its expertise in the development of hydro-power projects and assist the country in the oil and gas sector as well.
Industries and Production Minister Liaquat Ali Jatoi said that there were vast opportunities to enhance the Pakistan-Canada economic and trade ties in surgical items, sports goods, textile and leather sector.
He said Canada had been offered to put their investment in hydel power generation, modification, expansion and value addition of textile sector and also modification and expansion of Heavy Electrical Complex and Heavy Mechanical Complex.
Mr Jatoi said that his meeting with the Canadian minister was result-oriented and they discussed various matters of mutual interest, setting up of joint ventures, transfer of technology and investment in the potential sectors.
He said Canada had been offered to make investment in Gwadar port that was being developed as free trade port. “From this port Canada could easily penetrate in markets of the Far East and the Middle East. Pakistan will become hub of economic activities after the completion of Gwadar port and all the trade to CARs, the Far East and the Middle East could go through Pakistan,” the minister added.
Mr Jatoi said that Canada had also been offered to consider granite and marble sector for investment to increase exports as well as in wind-mill power generation to reduce “our cost of doing business.”
He said the visiting delegation had been briefed on the rationalization of tariff, economic policies of the government, liberal investment policies, incentives being offered to the investors, and chemical and engineering policies.
Meanwhile, an official statement said Canada and Pakistan would encourage linkages between business community of the two countries to increase trade and investment.
During a meeting between Allan Rock and Finance Minister Shaukat Aziz the two sides also identified telecommunications, mining, energy, airlines, oil and gas and information technology as potential areas for increasing Canadian investment in Pakistan. The Canadian minister also evinced interest in the privatization programme.
Mr Shaukat informed the Canadian minister that Pakistani banks were expanding globally and would be interested in opening their branches in Canada.