Vast opportunities of Pakistan's trade with UK
Pakistan Times Business & Commerce Desk

LAHORE: There are lot of opportunities for Pakistani entrepreneurs in United Kingdom and they should avail these opportunities to maximise their share of trade with UK.

These views were expressed Sir Ghulam Noon, Ex-President London Chamber of Commerce and Industry while speaking at LCCI on Saturday.

The LCCI President Mian Misbahur Rehman, Senior Vice President Sohail Lashari also spoke on the occasion. Sir Ghulam Noon said that the United Kingdom is one of the major shareholders in Pakistan’s industry and this volume of investment could go to new heights if concerted efforts are made in right direction. He said that in this age of technological advancement, only those businesses would survive who would keep pace with fast changing global scenario.

Talking about recent blasts in Britain, Sir Ghulam Noon said that it is nothing to scare about as extremist element are trying to spoil the atmosphere but the situation is fast returning to normal. Speaking on the occasion, the LCCI President Mian Misbahur Rehman said that the businesses community of the two countries should keep on exploring the opportunities of mutual interest.

Business delegations composed of sector-specific participants or product-specific group of entrepreneurs should be organized regularly as business houses can always join hands to yield tangible results.

Pakistan and United Kingdom enjoy good economic relations. The trade between the two countries is progressing but is still not up to the mark and leaves much to be desired at. The trade volume between the two countries during 2003-04 was $ 1.38 billion where Pakistan’s exports were US$ 940.9 million against imports from U.K. of $ 438.2 million. Foreign direct investment in Pakistan by U.K. increased during the year 2004-05 to US$ 181.5 million from US$ 64.9 million during 2003-04.

The LCCI President said that the level of trade between the two countries could be increased significantly by removing anti-dumping duties imposed @ 13.1% by the European Union on the export of bed linen from Pakistan and avoiding change in the Rules of Origin, which would result in relocation of entire value-added textile sector to less developed countries.

Briefing the distinguished guest about economic development in Pakistan, Mian Misbah said that Pakistan is on the road to political and economic stability. The outgoing fiscal year was an eventful year in which its real GDP grew by 8.4% as against 6.4% in the preceding year. While the overall manufacturing registered a growth of 12.5%, large scale manufacturing and services sector posted respectable growth figures of 15.4% and 7.9% respectively.

Pakistan’s strategic location and rapidly growing economy offers immense potential for Foreign Direct Investment. Pakistan is a key market having a population of 153 million people and its manpower is highly capable.

Labour is comparatively cheap. Investment operations based in Pakistan would not be restricted to the Pakistani market alone but would find their way to India and Central Asian States.

The establishment of Gawadar Port, Baluchistan and Sundar Industrial Estate offer huge opportunities for investment by British citizens. Some of the portion of Sundar Industrial Estate in Lahore has been reserved exclusively for foreigners.

To be specific, Pakistan offers immense scope for investors in information technology, telecommunication, textiles (value addition), oil & gas, water & power, food & food processing, SMEs, engineering, tourism and services etc. These potentials need to be studied and monitored by the British investors particularly those having Pakistani origin on investment opportunities in Pakistan.

The interaction of Chambers of Commerce & Industry of the two countries can be instrumental in raising the level of trade and investment between the two countries.

Mian Misbahur Rehman said that Government of Pakistan has provided a number of incentives for Foreign Direct Investment. The investment policy has been liberalized and made business friendly. All economic sectors have been opened to foreign direct investment.

Free movement of foreign exchange has been allowed. Foreigners have free access to capital markets and there are no restrictions on repatriation of principal, dividends and profit etc.

There is no limit on equity held by foreigners and no requirement for entering into a joint venture with a Pakistani counterpart. There is no restriction on borrowing if government guarantees are not sought.

Overseas Pakistanis who bring US$ 20 million for investment would be provided 10 acres of land free of cost for undertaking their ventures.

The LCCI Senior Vice President, Sohail Lashari, said that Pakistanis living in United Kingdom should invest in industrial sector back home as industry is growing fast and there right decision would not only eliminate poverty but would also bring down the graph of unemployment.●