Dar highlights potential investment areas to boost economic ties with Japan

Finance Minister Ishaq Dar on Wednesday, appreciating Japan's economic assistance to Pakistan, highlighted potential areas of investment to further boost their economic relations and trade activities.

"Huge potential exists to further strengthen economic ties between Pakistan and Japan as Pakistan offers a big market for investment in energy, automobile, textile, surgical equipment, infrastructure, engineering, agriculture and SMEs," he said.

While addressing Japanese businessmen at an investment seminar organized by Japan External Trade Organization JETRO and co-sponsored by Board of Investment here, the minister said Pakistan also needed Japanese technical assistance and investment in renewable energy sources such as solar, wind, thermal and biogas.

He hoped that the Japanese companies would tap the potential and explore some of these areas for their future investments. Pakistan, he said, was an upcoming emerging market and many multi-national enterprises had made profits in recent years. This had encouraged other enterprises to expand their investments in Pakistan.

Dar said the World Bank had projected that the investment growth rate in Pakistan, which declined for several years in the past, would rise during 2014-16. He said Pakistan had one of the most liberal foreign investment regimes in South Asia. Hundred percent foreign equity was permitted in the manufacture and infrastructure sectors as the country had a market-oriented economy, with a rapidly growing private sector.

He said Pakistan had a very dynamic market and a large consumer base. There was great potential in the power, infrastructure and natural resource sectors. There was also scope for investment in hydel and coal based power projects.

Referring to cordial bilateral relations between Pakistan and Japan, which have grown significantly over the years, he said Japan's economic assistance had helped much in the development of Pakistan's economic and social infrastructure. Dar said though Japanese auto sector accounted for about 95 percent in the fourwheeled vehicle market and had a great positive influence on Pakistan's economy but bilateral trade volume between Pakistan and Japan had been stagnant for the past five years.

"It is also heavily in favour of Japan which needs to be addressed through initiating negotiations for Early Harvest Program of Free Trade Agreement (FTA)," he added.

The minister said there was a need for world class education system and mechanization of industries that, if exploited efficiently, could generate wealth for foreign investors. He said Pakistan stood on the verge of a momentous transformation. "Our government is fully committed to harness economy through appropriate policies and strategic vision. The government, he said, had a long term development plan aimed at creating a globally competitive and prosperous country, with particular emphasis on achieving macroeconomic stability through inclusive growth". Dar said the government attached top priority to enhance the performance of the economy for a better Pakistan.