DAVOS: Prime Minister Syed Yusuf Raza Gilani on Thursday called for institutional support to enhance bilateral trade ties between Pakistan and Switzerland.
Talking to President of the Swiss Confederation Eveline Widmer-Schlumpf, the Prime Minister said Pakistan provided lucrative investment opportunities and there was a need to encourage business to business contacts between the private sectors of two countries.The Prime Minister, who was accompanied by Minister for Finance Abdul Hafeez Sheikh and Minister for Foreign Affairs Hina Rabbani Khar, said ties between the two countries have strengthened through regular exchanges.
He said the annual summit of World Economic Forum was playing a key role in creating greater understanding of the issues of global importance and also in promoting closer ties between the two countries.
Prime Minister Gilani said the Pakistani domestic market had a rich potential and increased Swiss investments would deepen the business ties between the two countries.
He said several Swiss companies were already operating in Pakistan and doing good business. He said Pakistan's liberal investment policies were a great incentive for foreign investors.
Gilani said that Pakistan would appreciate if the Swiss government reinstates it in the list of "priority countries" of the Swiss Agency for Development Cooperation, which has so far provided an assistance of US 8.5 million. He was also appreciative of the Swiss "Hindukush Program," for both Pakistan and Afghanistan.
Gilani also emphasized frequent exchange of business delegations, exhibitions and seminars to strengthen bilateral commercial ties, besides closer interaction between the chambers of two countries.
Widmer-Schlumpf said the multifaceted cooperation between the two countries would continue to grow in the days ahead. The Swiss President said her government was committed to further strengthen all facets of Pakistan-Switzerland relations.
The Swiss President of the Confederation is the presiding member of the seven-member Swiss Federal Council and is elected by the Federal Assembly for a period of one year. The entire Federal Council is considered a collective Head of State.
Prime Minister Gilani commended the role of the Swiss Government for being an important member of the Friends of Democratic Pakistan forum and also appreciated the humanitarian assistance for the earthquake and flood victims in Pakistan.
The Prime Minister said Pakistan has abundant natural resources, a skilled and cheap work-force, and a market of over 180 million besides its location as the gateway to the Central Asian Republics, South Asia and Gulf countries.
He said all these markets, including Afghanistan, can be effectively and conveniently tapped from Pakistan.
Gilani invited Swiss businessmen to invest in Pakistan on 100 percent equity basis or as joint ventures with local industries. He said that the present government has adopted a liberal investment policy with no restriction on sending back the principal, dividends, profits and royalties.
He urged the Swiss businessmen to come forward and seize the unprecedented investment opportunities in Pakistan.
Gilani was also appreciative of the role of the Swiss Business Council (SBC) for its significant role to strengthen economic relations between Switzerland and Pakistan.
The SBC was established in 2008 by the private sector to promote bilateral trade relations between the two countries. Currently, SBC has 24 members, including subsidiaries of multinational Swiss companies operating in Pakistan and local representatives of Swiss manufacturers.
The bilateral trade between the two countries in 2009-10 stood at US 389.7 million dollars, while the main areas of cooperation were in the sectors of energy, mining, agriculture, and equity market. There is a potential for supply of raw materials and finished products in fertilizers, chemicals, and pharmaceuticals between the two countries.
Switzerland has always been among the top five Foreign Direct Investors in Pakistan and presently 20 Swiss companies are operating in the sectors of energy, banking, chemicals, pharmaceuticals, agriculture solutions, catering, cigarette manufacturing, food, telecommunication, quality testing, machinery, construction material, and airlines.
There are over 200 strategic alliances between businessmen of both countries. Over the last decade, Swiss investment has exceeded USD 1 billion and led to the creation of more than 10,000 jobs in Pakistan. Companies like ABB, Clariant, Sika, Gate Gourmet, Nestle, Novartis, Roche, SICPA, SGS, Syngenta or Nexus are currently operating in Pakistan and doing a successful business.
Switzerland has also been contributing towards the development of Pakistan through its development and humanitarian aid programmes. Switzerland contributed US $10.7 million to flood-related humanitarian projects in Pakistan, while the total funding through Swiss Solidarity came to US 42.1 million dollars as flood relief assistance.
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