Japanese companies keen to invest in Pakistan

ISLAMABAD: Japan on Tuesday termed Pakistan investment policy as best in the region and said Pak-Japan Bilateral Investment Treaty would help encourage Japanese investment in Pakistan.

Pakistan would be future investment destination in the region, as positively changed perception would help Japanese companies to benefit from incentives available for the foreign investors.

It also demanded to ensure improvement in law and order situation, infrastructure and consistency of policies to attract Japanese investment in Pakistan.

The Japanese business and investment delegation also had meetings with senior officials from the Ministry of Commerce and the Board of Investment and other relevant authorities to learn about trade policy and the government incentives for foreign business and investment. More than 30 Japanese business people took part in these occasions.

After concluding meetings at federal capital on Tuesday, Daisuke Hiratusska, Executive Vice President Japan External Trade Organisation (JETRO) said that this visit of Japanese delegation was unique in nature so as to as to change the perception of Japanese companies about Pakistan. Before the Japanese investors thought Pakistan as dangerous country for investment, however, now they have found this perception as totally in correct and the members of the delegation would be telling their business friends in Pakistan about huge potential and investment friendly policies of Pakistan.

He said Pakistan’s population was growing and very good geographic location of the country would help attract investment as there would be human resource availability for the economic development and new investors would be more than willing to utilise local less expansive manpower for expansion in their production base in Pakistan.

In auto sector policy, he termed allowing 5 years old and used cars might be useful for consumers but this policy was harmful for the existing local auto industry and if the existing players were protected than new auto sector players would be coming in to Pakistan especially the venders.

He informed three major players in auto sector like Suzuki, Honda and Toyota were not happy on changes in auto sector policies in recent years.

He also desired interest rate should be brought down to single digit as it would increase buying power and help consumers to benefit from car financing schemes offered by banks.

At present Pakistan and Japan has inked Avoidance of Double Taxation Agreement and Protection of Investment Agreement, there is no Bilateral Investment Treaty between the two countries and incase, governments of Pakistan and Japan ink BIT it would surely help encourage Japanese investment in Pakistan. The delegation consists of representatives from Japanese companies in a wide range of sectors, including mining, manufacturing, trading and banking.

One of the focuses of the government of Japan in the 60th anniversary of diplomatic relations has been promoting trade with and investment in Pakistan.

Delegation also visited Karachi and the Expo-Pakistan and the National Industrial Park. They had an opportunity to network with the members of the Pakistan Business Council, the Pakistan Japan Business Forum and other major enterprises. staff report

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