Kasuri encourages US entrepreneurs for investment

Foreign Minister Khurshid Kasuri, highlighting Pakistan's tremendous economic potential and its key strategic location to serve as regional hub of trade and economic activity, encouraged American entrepreneurs to take advantage of the vast business opportunities existing in the country on the back of its sustained high growth.
Addressing a gathering of corporate leaders at the World Trade Centre in Chicago, the foreign minister apprised them of an attractive business climate and liberal investment policies that saw the country pull in a record foreign direct investment (FDI) of six billion dollars last year, signalling international investors firm confidence in Pakistan's tremendous growth prospects.
The foreign minister informed the gathering that more than 60 American companies were operating in Pakistan and posting handsome profits. He listed diverse sectors of economy including oil and gas, mining and energy, IT and telecom, tourism and hotel industry, real estate and infrastructure development as presenting enormous opportunities.
Khurshid Kasuri also referred to the fact that Pakistan-US bilateral trade had boosted rapidly in the last few years. Pakistan's exports to the United States have swelled to 3.66 billion dollars in 2005-06 from two billion dollars in 2001 and likewise the country's imports from the US have increased to 1.6 billion dollars in 2005-06 from 565 million dollars 2001.
"Pakistan's economic relations with the US are of central importance to us and the US is Pakistan's largest trading partner." The two countries, he said, signed a trade and investment framework in 2003 and had a mechanism in place to promote economic co-operation.
The EXIM Bank is a major partner in guaranteeing air fleet replenishment from Boeing for Pakistan's national airlines, and is willing to offer similar support in other areas. Overseas Employment National Corporation is increasing its activities in Pakistan. Pakistan has also established an organisation to protect intellectual property rights.
He said Pakistan had proposed to the US government that the two countries should begin negotiations for a free trade agreement. It is believed that the conclusion of such an agreement would bolster Pakistan-US trade substantially and provide a win-win environment for businessmen of both countries including those from textile.
He said accelerated economic growth and the opportunities that had been unleashed had created an enabling environment for expanding investment and trade between the two countries.
Drawing American investors' attention to the country's ranking in the top 10 reforms in 2006 World Bank Report of Doing Business and its inclusion in the club of next level by Goldman and Saches, he said Pakistan had become investors' destination by choice due to very liberal investment policies that allowed repatriation of capital, royalty and dividends and 100 percent equity participation.
Speaking in the context of Pakistan's upbeat economic scenario, he informed the gathering that the national economy had grown at an average growth of seven percent during the last five years, positioning itself as one of the fastest growing economies in Asia. This strong growth momentum is underpinned by broad-based comprehensive structural reforms, dynamism in industry, agriculture and services sectors.
He observed that despite shock of soaring oil prices putting constraints on the country's trade balance as well as the staggering 2005 earthquake, Pakistan's economy continued to demonstrate resilience and was again expected to follow high growth trajectory next year also.
The foreign minister said driven by policy of deregulation, liberalisation and privatisation, Pakistan was moving fast towards market economy. The trade volume has shot up to 41.4 billion in 2005-06 from 17.8 billion dollars in 1999 and is likely to rise further this year.
He said the country's foreign exchange reserves had increased manifold in the last five years, covering seven months of imports and the public debt had also declined significantly in terms of gross domestic product (GDP) percentage.
Referring to decreasing poverty, declining unemployment, rising income level, demographic advantages and a growing middle class, he said the strategically located country of 160 million people had the confidence of four vital sub-regions of Asia - the Gulf, Central Asia, South Asia and West Asia.
Boeing Vice President Kim Malishenjo lauded Pakistan's economic development in the last several years. Earlier, the foreign minister also visited Board of Trade Chicago where its director briefed him.