The Hindu : Front Page : Indian trade delegation meets Yusuf Gillani

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Wednesday, Jun 04, 2008
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Indian trade delegation meets Yusuf Gillani

Nirupama Subramanian

To explore investment prospects in energy, steel, shipping

Pakistan will welcome investment in power generation
All sectors of Pakistani economy allow FDI

ISLAMABAD: Days after External Affairs Minister Pranab Mukherjee and the Pakistan People’s Party (PPP) government discussed ways of improving economic co-operation, a delegation from an Indian multinational has arrived here to explore the possibilities of investing in Pakistan.

Ruia brothers Shashi and Ravi of the ESSAR group met Prime Minister Yusuf Raza Gillani on Tuesday, told him the group had $40 million investment worldwide, and expressed their readiness to invest in Pakistan too, in the energy, steel and shipping sectors.

Officially, Pakistan has not announced any change to its economic policies with India, which are at the moment limited and restrictive. But the new PPP-led government has expressed a willingness to improve bilateral economic ties.

Mr. Mukherjee, who was here last month, and the PPP leader Asif Ali Zardari devoted much of their meeting to a discussion on possibilities of investment and joint ventures by industrialists and investors of both sides in each other’s countries. One of the proposals they discussed was investment to develop the Thar coal power project.

Mr. Gillani, according to the official statement of Tuesday’s meeting, told the Ruia brothers that “since Pakistan is deficient in electricity, it would welcome investment in power generation, especially in developing the Thar coal reserves.”

Mr. Gillani did not specifically say that Pakistan would welcome Indian investment, but he told the ESSAR delegation that Pakistan offered a “liberal and attractive package of incentives” for investors -- as 100 per cent foreign equity is allowed and there are no restriction on remittances of royalty, technical and franchise fee, capital, profits and dividends.

The government would soon announce a power policy that would contain incentives to attract foreign investment, he told the delegation.

Almost all sectors of the Pakistani economy allow FDI without making any discrimination between foreign and local investment as no government sanction is required in either case, the Prime Minister added.

Mr. Gillani also made the point that Pakistan was looking to export its surplus cement to “neighbouring countries.” India is already buying cement from Pakistan, and the two sides have recently agreed to improve freight train links between Amritsar and Lahore so that Pakistani cement exporters can send more quantities over the border.

Foreign Minister Shah Mahmood Qureshi was also present at the meeting. Two office-bearers of the SAARC Chamber of Commerce and Industry were also present.

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