Italy to double investment in Pakistan this year

Maiden agreement between Agha Steel, Italian Danieli signed

ISLAMABAD: Italian Ambassador to Pakistan Stefano Pontecorvo has stated that the European country sees doubling investment in Pakistan within a year as more Italian firms are looking for partnership with Pakistani businessmen.

“A mission consisting of 80 to 120 Italian businessmen will visit Pakistan in the current year to look into opportunities for partnership with Pakistani counterparts in different sectors,” said Pontecorvo during the signing ceremony of Pak-Italy friendship contract between Agha Steel Industries and Italian Danieli.

This is a maiden agreement between any industry of Pakistan and Italy and the project includes complete reconstruction of the electric arc furnace (EAF) and a new fume treatment plant.

Under the project, Aga Steel Industries will utilise the largest steel manufacturing furnace in Pakistan to make quality grade reinforcing bars (rebars) for the upcoming growth in steel demand due to China Pakistan Economic Corridor (CPEC) related projects.

Pentecorvo said this time around the delegation was small however as business collaboration expands so will delegates. “Italy sees significant potential for partnership and investment in Pakistan in various fields as the country has a dynamic economy with significant growth opportunities.”

In the first phase, the Italian companies will focus on steel, agriculture machinery/technology, ICT, infrastructure, mining, textile, pharmaceutical and leather goods.

Besides, there is also potential in the automotive sector, both in the two wheels and four wheels industry.

“Italy is the fourth largest investor in Pakistan following China, UAE and Hong Kong with a total investment valuing at $100 million along with bilateral trade worth €1 billion,” said the ambassador.

Concerning the challenges of doing business in the country, the ambassador said there were certain issues regarding the imbalance and clarity of tariff, which need to be addressed by the government.

Also present on the occasion, the Board of Investment Chairman Miftah Ismail said Pakistan and Italy have a good relationship in a variety of fields and it is now time to further strengthen it.

Meanwhile, the Agha Steel Industries Executive Director Hussain Agha said his firm was the fastest growing steel manufacturing company in Pakistan and revealed the company intended to have an Initial Public Offering (IPO) soon. “By choosing Denieli as our technology supplier, it is a testament that we are focused on the utmost value creation for our upcoming shareholders during the IPO,” he said.

Published in The Express Tribune, July 28^th, 2016.

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