Special economic zone for Japanese investors

ISLAMABAD  - Minister for Finance, Privatisation and Investment, Syed Naveed Qamar here on Wednesday assured the Japanese businessmen that Pakistan would ensure establishment of special Economic Zone for Japanese investors on priority basis.

The Economic Zone would be equipped with all the basic infrastructure, Naveed Qamar told a 15-member delegation on Pakistan-Japan Business Forum led by Makoto Kakebayashi during a meeting. Giving an overview of Pakistan's economy, Syed Naveed Qamar said that the pressure on current account was due to oil and food imports, which was being curtailed through effective measures.

Efforts were underway to improve environment for the private sector and a list of the public sector entities being offered through strategic sales, for privatisation would be made public within next ten days time, he said. He said that the inflows of Foreign Direct Investment have been good, which reflected government's facilitated portfolio-based investment planning and the tremendous interest by the investors in the power projects.

In order to curtail the smuggling of diesel to the neighboring countries the subsidies on certain petroleum products would be reduced gradually, he said adding that Pakistan workers remittances have gone up to US$ 56.5 billion as compared to the previous years figure of $ 5.5b.

The Finance Minister who is also Minister for Privatisation and Investment directed the Board of Investment (BOI) to work together with the Pakistan Japan Business Forum in conducting an in-depth study to find out the impediments being faced by the investors in general and the Japanese investors in particular.

A workable report should also be prepared in the light of this study, suggesting remedial measures to remove all sort of hindrances and bottlenecks, he said adding that all out efforts should be made to encourage the Japanese business sector to enhance their operations and investment in Pakistan.

Speaking on the occasion, the leader of the delegation of Pakistan-Japan Business Forum Makoto Kakebayashi said that the Japanese Business and investment groups and the government were keen to modernize the basic infrastructure in Pakistan.

 through Official Development Assistance (ODA), JICA, JPIC in the health, education, water and communication sectors, adding that projects of Khanki Barrage and Karachi circular railway were already underway.

A report of the Pakistan Japan Business Forum joint study group would be submitted to the government of Pakistan by the end of the year, he said.

The members of the Japanese business delegation offered to install two 500- megawatt power plants in Pakistan and further increase investment in the automobile industry.

The delegates further discussed with Finance Minister matters relating to promotion of business ties and trade relationship between the two countries.

The Japanese Study Group comprises important Heads of Japanese companies that focus investment, business opportunities and bilateral trade between the two friendly countries.

The Japanese Business Study Group aims to prepare a study report on scope, extent, problems and prospects of Japanese investment in Pakistan.

The Secretary investment Division Ahmad Waqar and senior officers of Finance Division, Privatisation Commission and Board of Investment were also present during the meeting