Keynote Address by the Prime Minister

‘Fifty Years of Bilateral Investment Treaties Conference’

Frankfurt, Germany

^{1st December 2009}

 

Honroable Mr. Roland Koch, President of the State of Hesse

Mr. Hans-Jaochim Otto, State Secretary of teh Ministry of Economics and Technology

Distinguished Guests

Ladies and Gentlemen

 

I am delighted to participate in Fifty Years of Bilateral Investment Treaties Conference 2009.

 

The event commemorates the first investment treaty of its kind signed between a developing and a developed country, back in 1959.

 

Pakistan has the singular honor of being the first country with which the Federal Republic of Germany entered into such an arrangement.

 

May I express my gratitude to the German Ministry of Economics and Technology for supporting this initiative.

 

And to Deutche Bank for hosting the event. Pakistan is happy to be a partner country in this Conference.

 

I am confident the event will make a meaningful contribution in examining Pakistan-Germany economic relations in an historic context.

 

And also highlighting the many prospects the future holds. The first step that we took fifty years ago is now a global norm.

 

By guaranteeing German investments protection and facilitation, it opened the gateway for participation by German corporate sector in Pakistan’s development.

           

It was a path breaking, norm making achievement.

 

Around 2500 Bilateral Investment Treaties among 179 countries, today form an important pillar of the global financial architecture.

 

This morning we took another historic step.

 

Pakistan and Germany signed a new Investment Treaty to redefine and upgrade their economic relationship in the twenty-first century.

           

The new instrument is more investment friendly. It builds upon our long-standing corporate relations. And takes them into a new era of mutually beneficial collaboration.

 

Ladies and Gentlemen

 

 Pakistan and Germany enjoy friendly relations in all fields. Our political relationship is close and cordial.

 

We deeply appreciate the support we have received from the German Government and people.

 

Your development assistance, your strong contribution to the Friends of Democratic Pakistan and your supportive role in the European Union, are all acknowledged with gratitude.

 

But perhaps more significant is our business relationship, and the equation between our corporate sectors. Germany is Pakistan’s largest trading partner in the European Union, and the eighth largest source of foreign investment in our country. German companies are well established in Pakistan. Your products and technology are valued highly.

 

Pakistan, as Germany puts faith in free enterprise. In market forces, and in private entrepreneurship.

 

The private sector of our country is the pillar of our growth.

 

            Key to this growth is its collaborative links with foreign investors and companies.

 

            A link that promotes both investment and trade.

 

            Pakistan is keen to have preferential access to European markets.

            

We have sought Germany’s support in remodeling the GSP Plus regime to also include countries badly hit by terrorism.

 

And look forward to early commencement of negotiations on a Free Trade Agreement.

 

The framework we have concluded today should also be viewed as a strategic initiative.

 

This relationship, like the relationship we forged fifty years ago, can have a transformational impact on Pakistan and the world.

 

By widening the arc of prosperity, and spreading the dividends of development it can help catalyze societal change.

 

And increase security for all.  This is also a win-win scenario.

 

Pakistan is a market of 170 million.

           

A strategic location, at the cross roads of China, the Middle East and Central Asia, with a Free Trade Agreement with China and several in the pipeline.

 

A vast agro-based and mineral potential. And an abundant human resource.

           

With an investment climate, rated highly for its business friendliness. All sectors of our economy are open to business.

 

In Pakistan you can start your business without approval or sanction on hundred percent equity basis.

Foreign investments are given national treatment and remain fully protected by law.

 

We have signed bilateral investment promotion and protection agreements with 47 countries of the world.

 

Moreover, in Pakistan we have established Special Economic Zones (SEZs) where investors enjoy additional facilities.

 

You can freely remit royalty, technical & franchise fee, capital, profits and dividends.

 

And enjoy high rates of return.  Pakistan Board of Investment has been mandated to facilitate and assist foreign investors.  Board of Investment will hold your hand to fast tack your projects under one window. As we seek to build a better future, for ourselves, for the region and the world, I invite you to become our partner.

Like the investment treaty fifty years ago, it is time for another first.

 

Let us take another step forward in our common pursuit for happiness and prosperity. 

 

Thank you all.