Pakistan woos US investors into energy sector

Ambassador to US Hussain Haqqani cost of doing business in Pakistan compared favourably with its peers in the region.


November 21, 2010

HOUSTON: Pakistan offers tremendous opportunities to US investors in the energy sector and foreign companies can greatly benefit from the business-friendly policies geared towards meeting the country’s fast-growing energy requirements, Pakistan’s Ambassador to the US Hussain Haqqani said.

Speaking to participants of a conference focusing on utilisation of Thar coal energy potential, Haqqani advised them to shun negative media reports about the situation in Pakistan as these were mostly exaggerated.

Additionally, the cost of doing business in Pakistan compared favourably with its peers in the region, he said.

Foreign investment would create job opportunities and discourage those inclining towards joining extremist outfits, Haqqani said.

The envoy noted that negotiations on the Bilateral Investment Treaty (BIT) with the US were advancing and implementation of the treaty would open more business opportunities for the two countries.

The conference was attended by a large number of Texas companies specialising in coal-based power generation. It was also addressed by Aijaz Ali Khan, Secretary Coal and Energy Development Department, Government of Sindh, who underlined the opportunities that existed in coal power generation.

Haqqani said Islamabad was making investment to develop a national trade corridor, linking the ports in the south to the north of Pakistan and onwards to Afghanistan and Central Asia.

“The recently inked Pakistan-Afghanistan Transit Trade Agreement is a milestone and will kick-start regional growth and development.

The US is a key partner of Pakistan in this initiative.”

He told the audience that the development of coal energy should be treated as a national security matter.

“It is imperative that we extract and develop alternative energy resources.”

“Thar coal field must be developed at the earliest to make Pakistan self-sufficient in power production. International financing is vital for coal extraction and I hope that the US will play its role in financing the project,” the envoy said.

The conference was told that Pakistan has signed agreements on avoidance of double taxation with 52 countries, including China. Under these agreements, proportionate tax relief is allowed to a person residing in Pakistan on income earned abroad (if such income has already been subjected to tax outside Pakistan).

The forum was also informed that hardcore manufacturing sectors in Pakistan, including shipbuilding, automobiles, construction machinery, farm implements and railway locomotives were all open to foreign investment.

Published in The Express Tribune, November 21st, 2010.

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