LAHORE, Sept 9: The foreign direct investment is on the rise as the foreign-based companies operating in Pakistan are earning 25 to 70 per cent profit on their investments.
The Executive Director, Board of Investment, General Talat Rasheed Miyan stated this while speaking during a seminar organized by the Indonesian Embassy and the Lahore Chamber of Commerce and Industry, on Thursday.
He said that globally the FDI growth had decreased, but in Pakistan it was on the increase due to favourable investment climate. The FDI during 2003-04 stood at $950 million which is expected to go to $1.5 to 2 billion per annum in the near future.
So far, around 600 foreign companies have made investments in Pakistan and not one has left the country. Of these 300 are big companies, while 46 are listed on the stock exchange.
All sectors of economy, he said, are open for foreign investment which is fully protected. The government has also entered into investment protection agreements with 46 countries. There are no restrictions on the repatriation of the investment, either.
He said the Board of Investment is planning to hold investment conferences in Singapore and Indonesia by the end of this year. The Punjab Industries, Trade and Investment Minister, Muhammad Ajmal Cheema speaking on the occasion said that the volume of bilateral trade between India and Pakistan was limited and the country was exporting only limited categories of goods to Indonesia, despite prospects of export of a much larger variety due to trade bottlenecks.
He said that the volume of bilateral trade between Indonesia and Pakistan could be increased to one billion dollars per annum by frequent exchange of trade information and trade delegations and by holding single country exhibitions. He said that the Pakistani businessmen participating in the industrial exhibition in Indonesia would be allowed 50 per cent concession.
He said that there were bright prospects for trade and economic co-operation between the two countries in the information technology, auto-industry, communication, leather, surgical and sports goods. He invited the Indonesian entrepreneurs hold industrial exhibitions here.
The Indonesian Ambassador Anwar Santoso said that his government was encouraging foreign investment in all sectors of the economy through its liberal trade and investment policy.
The year 2003 had been declared the Year of Investment by President Megawati Soekarnoputri. Investment facilities are being offered under one-roof for the convenience of the entrepreneurs. He said that the Indonesian corporate sector was desirous of expanding economic relations with Pakistan.
The Honorary Counsel of Indonesia for Punjab Jamil A. Naz has said that the abolition of the posts of commercial attaches in Pakistani Embassy at Jakarta had resulted in decreased exports to Indonesia. The post had been abolished after two attaches resigned one after another and started their businesses in Indonesia.
Non-availability of direct flights and shipping facilities between the two countries are also hindering the bilateral trade. In the past there were direct flights between Islamabad and Jakarta.
The Lahore Chamber of Commerce and Industry President Mian Anjum Nisar has said that there was a vast scope for the export of dates, apples, citrus, potatoes, surgical instruments and chemicals to Indonesia, besides increasing the rice and cotton exports.
Director General, Export Promotion Major (Retd) Haroon Rashid has said that exports have increased to $12.273 during 2003-4 against $12 billion target but there had been no increase in the exports to Indonesia due to trade bottlenecks. The country imported goods worth $257.3 from Indonesia and exported goods worth $73.3 million only.
He said the EPB would facilitate in holding of a single country exhibition for introduction of Pakistani products in Indonesian market. A single country exhibition of Indonesian products would also be held in Pakistan.
He said that an expo centre was available for holding exhibitions in Karachi and the Exhibition Hall at the Expo Centre being built in Lahore would be completed in 18 months. He said that he would send a reference for appointment of a commercial counsellor at Indonesia.
Former President of the Federation of Pakistan Chambers of Commerce and Industry Tariq Sayeed said that Pakistan and Indonesia should enter into a free trade agreement and establish a joint chamber of commerce and industry for boosting bilateral trade. He said that Pakistan had a lot to learn from Indonesia which was far ahead of it economically.