ISLAMABAD: Germany on Friday ratified the new Bilateral Investment Treaty with Pakistan, after obtaining the consent of its Parliament.
An updated version of the Bilateral Investment Treaty was signed on December 1, 2009, in Berlin during the visit of Prime Minister Syed Yusaf Raza Gilani. Pakistan ratified the new treaty in 2010.
After ratification by Germany, the new Bilateral Investment Treaty replaces the old agreement, signed in 1959, for protection of investment.
The new Bilateral Investment Treaty will boost economic cooperation with Germany and it guarantees favorable conditions for German companies to invest in Pakistan, besides strengthening cooperation between corporate sectors of Pakistan and Germany.
Germany is an important source of Foreign Direct Investment (FDI) in Pakistan and several German companies are doing business in Pakistan. During financial year 2009-10, Germany was the fifth largest source of FDI in Pakistan.
Germany is Pakistan's largest trading partner in Europe. Bilateral trade in 2010 increased by over 22 percent compared to 2009.
Exports for Pakistan registered the highest ever figure in a calendar year at over $1.13 billion.
Copyright APP (Associated Press of Pakistan), 2011
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