Another trade delegation would be visiting Pakistan
by the end of March to strike joint venture deals
From SHAMIM AHMED
RIZVI
Islamabad
Jan-28 - Feb-03, 2002
A delegation of businessmen and investors from Egypt,
during its week long visit to Pakistan early this month, has shown keen
interest in investment in petroleum sector in Pakistan and also import
wheat, rice and tobacco from this country.
The delegation led by Muhammad Shafik Gabr who is
Chairman and Chief Executive of Artoc Group of development and
investment of a top ranking business group of Egypt called on Pakistan
Minister of Petroleum and Natural Resources, Commerce and Finance and
held in-depth discussions about the prospect of expansion in bilateral
trade besides availing investment opportunities in Pakistan through
joint ventures. The Egyptian head of delegation, said that his
government was exploring the possibility of establishing a garment
factory with the collaboration of Pakistan and Jordan. He said that
another trade delegation would be visiting Pakistan by the end of March
to strike joint venture deals.
The Egyptian delegation evinced interest in making
investment in Pakistan's oil and gas sector about which the minister for
Petroleum and Natural Resources, Usman Aminuddin gave them a briefing.
The minister explained Pakistan's existing policy in respect of term and
conditions and liberal and deregulated atmosphere for the investors in
exploration and development in the oil and gas sector. It may be pointed
out that foreign investment in Pakistan was especially active over the
last few years in this sector due to attractive conditions and
incentives which are available to foreign oil companies. The
participation of investors from the Muslim World in the development of
oil and gas fields in the country would undoubtedly be most welcome as
it would pave the way for a competition in this vital sector which has
been so far dominated by the Western multinational companies.
The Egyptian delegation also showed interest in the
establishment of joint ventures in Pakistan in readymade garments
manufacturing industry. It is well-known that Egypt is also a cotton
growing country like Pakistan and it excels in the production of long
staple superior quality cotton. As such Egypt's textile industry is a
highly developed one. Joint ventures can be viably promoted between the
private sectors of the two countries. The prospects for the expansion of
readymade garments industry in Pakistan with the collaboration and Egypt
and Jordan can be termed bright because exports from the joint venture
projects may be channelled into all Middle East Markets. In addition to
the readymade garments industry, a wide scope exists for the promotion
of joint venture projects between Pakistan and Egypt in other segments
of the textile industry such as manufacture of superior quality fabrics
by importing fine quality yarn from Egypt. Pakistan is at present
engaged in the modernisation, technological up-gradation and expansion
of its textile industry on a fairly large scale within the framework of
the programme known as textile vision 2005. Joint ventures with Egyptian
investors may open up the way for a closer, wide-ranging collaboration
between Pakistani and Egyptian private sector to the benefit of both
economies.
The Egyptian delegation is also reported to have
expressed willingness to import wheat, rice and tobacco from Pakistan.
This is indeed a timely offer for Pakistan which has been exploring
markets for the export of its surplus wheat and rice. The scope for the
export of tobacco to Egypt is also a welcome opportunity for
diversification of foreign trade.
We have often been emphasizing the need to pursue
"Look Arab" and "Look East" policy as a long term
strategy to find answer to the economic problems the country is
confronted with. The offer of Egypt to forge commercial and business
ties with Pakistan is, therefore, a welcome development. Pakistan is
situated in a region that is known for its rich hydrocarbon reserves but
no breakthrough has so far been achieved principally because of lack of
necessary financial resources to tap such reserves. This is borne out by
the fact that we have been able to undertake digging of maximum of 5 to
8 wells a year despite good ratio of success as compared to other
countries. Interest of a leading Arab country in the development of oil
and gas sector in Pakistan especially in the field of exploration augurs
well for the country. It will not only give a boost to existing
cooperation between the two brotherly countries but also inspire other
Arab states with rich experience of petroleum sector to come forward and
help Pakistan achieve a breakthrough in this vital area. Pakistan offer
most competitive terms to foreign investors but law and order,
inconsistency in policies, red-tapism and corruption neutralise them.
Provision of a sound and efficient infrastructure, transparency and
business-like handling of the projects and entrepreneurs could made a
difference as it did in case of a number of other countries. A system
should be devised whereby all stages of investment — right from
processing of the proposal to its approval and provision of basic
facilities are made available under one roof. We have been quick to
borrow terms like "one window operation" but no where in the
country it actually works despite a lot of rhetoric. Investors do come
but they are made to run from pillar to post to get their proposals
through. This state of affairs demands that the Board of Investment
should be vested with full powers to deal with investors and fulfil
their each and every requirement.
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