President Pakistan German Business Forum, Saifuddin N. Zoomkawala while presenting the annual report of PGBF in the second Annual General Meeting, held here on Wednesday, mentioned the activities of the forum to the members.
Although there is a steep decline in foreign direct investment in Pakistan so far in the current fiscal year and the main reason for this could be that majority of foreign companies have been avoiding investing capital despite recovery in financial status from the global credit crunch, things are better and getting on the right track and I have no hesitation to say that next fiscal year of Pakistan would, InshaAllah be, a year of hope, said Zoomkawala.
With context to Pak-German trade, he quoted the valued facts highlighted by Shahid Kamal, Ambassador of Pakistan in Germany in a meeting with Board of Directors' PGBF, that Germany is Pakistan's fourth largest trading partner and Pakistan's biggest European trade partner. Main exports from Pakistan are textile and textile made ups, leather goods, surgical instruments, carpets, cutlery, rice and horticulture products and main imports from Germany are, engineering goods and mechanical and electrical machinery followed by chemicals and pharmaceuticals.
He stated that Pakistan's exports to Germany increased by 23 percent (year 2009-10), overall bilateral trade volume between the two countries increased by over 11 percent and trade balance shifted in favour of Pakistan. More business representatives from Germany travelled to Pakistan in 2010 as compared to 2009, thus increase in business visitors helped promote trade and economic relations between the two countries. Participation by Pakistani companies in trade shows and exhibition are playing a considerable role in promoting bilateral economic relationships.
Pakistan was the first country with which Germany signed a Bilateral Investment Treaty (BIT) in November, 1959 which has been replaced by new BIT signed on 1 December 2009 during the visit of Prime Minister of Pakistan to Germany. During year 2009-10, Germany was the fifth largest source of Foreign Direct Investment (FDI) in Pakistan.
A year before it was seventh biggest source of FDI. Major German companies like Merck, Hoechst, Bayer, BASF, Siemens, Linde, Metro and Allianz are making investment in Pakistan. Now the challenge is to understand the dynamics of German market and adopt an effective strategy.
Zoomkawala further mentioned in his report that the activities of PGBF are mostly concentrated in Karachi and it was felt that its activities be extended to whole of Pakistan especially in the North of Pakistan where large industrial & trade organisations, conducting business with Germany, have strong presence as such the "PGBF-Northern Chapter" at Lahore was launched on 25th January, 2011. The northern chapter would play a pivotal role to promote, facilitate and support business relationship between Pakistan & Germany and bring together the business communities of Pakistan & Germany.
He added that PGBF with continued co-operation of Pakistan Ambassador in Germany, German Ambassador in Pakistan and Consul General of Germany in Karachi would achieve the much needed status of Pakistan German Chamber of Commerce in near future to accelerate the speed of economic and business activities between the two countries. PGBF Board of Directors has brainstormed holding of a conference titled "Fostering the German Pakistan Partnership" proposed to be held in November, 2011 in Karachi Pakistan. In this respect all stakeholders are being taken on board for its success, he further informed the members.
He paid tribute to Consul General, Dr Christian Brecht for his remarkable services not only to Pakistan but also to PGBF as well as to Dr Michael Koch, Ambassador of Germany in Pakistan for his support & assistance to PGBF & the continued interest he takes in the welfare & development of Pakistan.-PR