President invites Japanese to rejuvenate economy

Seeking co-operation of Japanese investors to explore enormous possibilities of strengthening and expanding business relations with Pakistan, President Asif Ali Zardari on Tuesday invited the Japanese Business Community to rejuvenate Pakistan's economy through their individual contribution, joint venture or consortia and help Pakistan.
Commenting on investment-friendly environment established by the present government, the President said, Pakistan is a natural route for trade and energy corridors for central Asia and west Asia and the government has designated a 2000 acres Special Economic Zones (SEZ) exclusively for Japanese investors near the port city of Karachi. The President expressed these views in a luncheon meeting with Japan Pakistan Business Co-operation Committee (JPBCC) here at a hotel on second day of his three-day visit to Japan.
He said that a Japan-Pakistan Special Task Force has been set up to fast track its interaction in trade, economy and investment and to cut through the traditional red tape. "Pakistan has steadfastly pursued liberalisation and de-regulation of economy, continued with liberal and friendly policies for foreign investors and the privatisation process. There is no upper limit of foreign equity and no restriction on repatriation of capital, profits and dividends," the President maintained.
Among other leading companies, the luncheon meeting was also participated by Chief Executives of Sharp Corporation, Toyota Tsusno Corporation, Mitsubishi, Toyota Motors, Jetro, Marubeni Corporation, JCCI, AEON Ltd, Mitsui and Co Ltd, Suzuki Motors Corporation, Meiji Gakuin University, ORIX Corporation, Honda Motors Company Ltd and Panasonic. President Zardari said that Pakistan is strategically located in the neighbourhood of the mega markets of China, India energy rich Central Asia, West Asia and the affluent Gulf region and it can act as a hub for exports to these regions and Pakistan's 170 million consumers, backed up by availability of abundant raw material, cheap and skilled labour.
He said that with an attractive package of tax incentives, investments in Pakistan were given comprehensive legal protection.
The President said that Pakistan is an energy deficient country and its deficiency is an opportunity for the foreign investments. Pakistan has coal deposits of 180 billion metric tones in south-east of the country and similarly the southern coast provides tremendous potential of wind energy, adding, the other key sectors offering profitable ventures are agriculture, infrastructure development and mining.
President Zardari said that Pakistan and Japan have enjoyed decades of cordial, political and economic relations but the potential existing in trade and economic sectors between the two countries is yet to be fully realised.
Pakistan with its continued economic growth has attracted more than $24 billion in Foreign Direct Investments in the last ten years where an inflow of $6.6 billion has been witnessed during the tenure of the present government, he said. The major investment, the President said, were made in telecom, oil and gas, financial businesses and power sectors besides textiles, construction, chemicals, trade and transport.
The exports witnessed a growth of 10 percent in fiscal year 2010 and are projecting a very healthy outlook for the current fiscal year, the President said, adding, foreign exchange reserves are well over $17 billion today against $10.8 billion, when the government came into power. The government has effectively controlled depreciation in the value of its currency, which is now stable and trading at an appreciated level compared to 2008-09, he added. The Karachi Stock Exchange Index, which serves a nerve centre for the state of economy is trading well over 12,000 points today as compared to 550-0 in December 2008, he said.
"Government is bringing structural reforms for fiscal discipline, transparency, improved tax governance and widening the tax net, he said, adding, it is also eliminating subsidies, containing fiscal deficit and inflation and has embarked upon a massive drive against poverty by introducing "Benazir Income Support Programme" to support millions of poverty ridden households at their door steps and economic support to jobless youth." He said the government is committed to support the agriculture sector, patronage of industry and trade, human resource and skill development, integrated energy programme and public-private partnership.
On the political side, the President said, the government has chosen conciliatory path with all the political force against the history of confrontation, which has helped it to resolve issues of national interest by bringing landmark constitutional changes with consensus.
President Zardari said that a strong economy is the key of winning the war against terror, adding, people with steady employment and prospects of a better future for them and their children are less likely to turn towards violence and terrorism.
About Pakistan economy, the President said that it has faced massive challenges and setbacks in the past few years. The devastating earthquake in 2005, worst floods of Pakistan history in July, last, the colossal impact of our role as the front-line state against terrorism, supplemented by global recession are all enough to flatten any economy of the world, he said and added the strength of Pakistan's economy is evident from its continuous positive growth despite these catastrophic odds.