India fails to stave off investment in Pakistan

Published: July 10, 2017
Email

ISLAMABAD: The first thing you notice when you tune in to Indian news channels is that they are unanimous in bashing Pakistan. Barring a few exceptions, almost all major news networks lean into this proclivity to depict Pakistan as only good for one thing – terrorism – and therefore part of the ‘axis of evil’.

The media in the neighboring country has been following a certain template since the right-wing Bharatiya Janata Party (BJP) leader Narendra Modi became the prime minister. The aim of Modi’s government policy is to isolate Pakistan globally because it believes the country is responsible for cross-border terrorism as well as uprising in the disputed Kashmir region.

The larger objective, however, of this aggressive approach is to dissuade Pakistan from taking the potential benefits of China’s massive investment, observers believe.

Pakistani woman turns to Sushma Swaraj for cancer treatment in India

Also the aim of this negative portrayal of Pakistan is to discourage foreign investors from investing in the country as the China-Pakistan Economic Corridor (CPEC) has generated interests among investors from the world over.

India’s policy of isolating Pakistan may have found space in its media, but in reality it is not getting traction in the world that they would have expected from all of this effort, as official documents, The Express Tribune was given access to, showed that about a dozen companies from a single European country alone have recently decided to venture into Pakistan.

In April, a delegation of the Association of French Entrepreneurs, known as MEDEF, visited Pakistan to explore the possibilities of investment in sectors such as automobile, oil and gas, energy, water management, engineering and microfinance.

MEDEF International acts as a Private Sector Liaison Office for the French Development Agency (AFD), World Bank, the EBRD, the ADP, the IDB and other development banks and international organisations, facilitating access to bilateral and multilateral financing for its members.

A 22-member delegation of the MEDEF that included senior executives of leading French companies after visiting Islamabad expressed their interests in investing in various sectors.

The minutes of the meeting and discussions held between the French delegation and Pakistani interlocutors revealed that at least nine top companies decided to do business in the country.

In the fields of automobiles, French manufacture Renault, that had been facing problems with Gandhara Motors, is now contemplating to build its own manufacturing facility at the Port Qasim.

Indian Deputy High Commissioner summoned again

Renault is a multinational automobile manufacturer that was established in 1899 and known for producing a range of cars and vans.

Crédit Agricole, one of the largest French banks, has upgraded Pakistan’s Rish Model by two levels that would result in lowering the cost of doing business in Pakistan.

“It has also approved, in principle, a financing loan for an LNG floating terminal at Karachi. The bank’s subsidiary, Crédit Agricole Grameen, also intends to undertake microfinancing projects for Small and Medium Enterprises in Pakistan,” reveal the minutes of the meeting.

Suez Group, a world leader in water and waste management, is keen to enter into an agreement with the government of Sindh for improved water supply to Karachi.

Pakistan’s ambassador in Paris handed over details of the two projects, received from the Sindh Board of Investment for the supply of water and management of waste in Karachi for consideration and possible investment by the company.

Similarly, the French global energy player, Engie, was awaiting response from the Pakistani side for the supply of LNG through a government-to-government contract. The draft agreement, received from the Ministry of Petroleum and Natural Resources for the supply of LNG, has already been forwarded to the mission in Paris for further transmission to the French side.

The French Institute of Petroleum and Energy had trained Pakistani students in petroleum in the 1960s. It has expressed willingness to re-establish its cooperative links with Pakistan.

Axen, a petrochemicals and natural gas company, has expressed willingness to expand its presence in Pakistan in view of the burgeoning oil and gas market in the country.

A leading French airport engineering and design company, ADP Ingénierie, which is already associated with the new Islamabad airport, has showed interest in Gwadar, DI Khan and Muzaffarabad airport projects.

Meteo France International is keen on concluding a MoU with the Metrological Department for cooperation in the field of metrology.

Also, the French Agency for Development has approved a financing amounting to $100 million to reform the sustainable energy sector in Pakistan.

The agency is also in the process of formulating its new five-year strategy for Pakistan, which would be aimed at further enhancing its engagements, including water management and urbanisation.

A senior foreign ministry official, who is familiar with the development, claimed that the interests of multinational companies showed that India’s policy of isolating Pakistan had failed.

Speaking on the condition of anonymity, the official said: “Even the allies of India are not toeing its line on Pakistan.”

Facebook Conversations

Reader Comments (22)

  • superNeo
    Jul 10, 2017 - 8:54AM

    This Article is compensation for insult faced in the G20 meet.Recommend

  • vivek
    Jul 10, 2017 - 9:24AM

    only France is interested not even not one billion in Investments where 65 billion loans must be returned Recommend

  • DJ
    Jul 10, 2017 - 10:09AM

    Damn!! You guys tend to become so happy to know about these potentially 9 or 10 investments, and why not when foreign investment is rare these are gold for PAK.Recommend

  • vaibhav
    Jul 10, 2017 - 10:14AM

    lol you are calling these penny a investmentRecommend

  • Venu
    Jul 10, 2017 - 10:53AM

    What is new about it? Lion share of investment into Pakistan is from China. If anything we are happy China is investing in Pakistan. Chinese are like machiavelli, Srilanka, Venuzeula, are a good example. We want them to invest $100 billion in Pakistan. We welcome it. Recommend

  • LOL
    Jul 10, 2017 - 11:09AM

    modi has failed miserably. only country he has convinced in 4 years is Afghanistan. LOOOOL.
    even Netanyahu didnot blame Pakistan (for terrorism) even once during his interview, despite die-hard efforts of Arnab Goswami. LOOOLRecommend

  • Ramanan
    Jul 10, 2017 - 11:26AM

    China’s is not ‘investment’ with capital I. It is either loan at usurious rates or investment with guaranteed return +no taxes.Recommend

  • Suleman
    Jul 10, 2017 - 11:50AM

    This could have been a good article without the India angle, so unnecessary. Recommend

  • vinsin
    Jul 10, 2017 - 11:52AM

    Where are the evidence that India do not want other countries to not to invest in Pakistan? Why and how India can control other countries and their decision? India is not responsible for low investment in Pakistan. Economics and investment in Pakistan is related to government policies not Indian government policies.Recommend

  • R S Chakravarti
    Jul 10, 2017 - 12:07PM

    I expected to read about specific examples where India tried to dissuade companies from investing in Pakistan but didn’t find any. I wonder if there is any truth in the headline “India fails to stave off investment in Pakistan”.Recommend

  • Pakistan
    Jul 10, 2017 - 12:34PM

    But nobody responds from the ruling Family? Convergence of interest I suppose.Recommend

  • Faisal
    Jul 10, 2017 - 12:34PM

    Finally an article in Pakistani media that highlights the truth. Well done Express Tribune! While Indian media and Indian internet users perpetually bash Pakistan and use derogatory language, we in Pakistan have been very nuanced and simply watching in astonishment at the raw hatred being spewed – even many sportsmen and Bollywood personalities have been insulting us.
    Now Indian frustration is growing even more as they see that the world refuses to believe the Indian one-sided version of events and the world is still open to do business with Pakistan: EU, Gulf countries, China, etc.
    I believe we should not trust our neighbour at all going forward because it has made is abundantly clear that they want us destroyed. Recommend

  • Alien1
    Jul 10, 2017 - 1:01PM

    Pakistanis are deluded, check everything is in the form of a loan and it has to be returned.Recommend

  • Vectra
    Jul 10, 2017 - 2:13PM

    You guys are becoming so happy when you all you gets is loan and re brand it as investment and present it before the general public.
    Can we plz talk about statistics and the statistics as of now seems says that out of $65 billion except may be $3-4 billion of aid combined from USAID,UK etc rest all are loans.Recommend

  • Vectra
    Jul 10, 2017 - 2:16PM

    The reality is India fails to stave off loans in Pakistan but has successfully staved off investments in Pakistan.Recommend

  • Faisal
    Jul 10, 2017 - 4:24PM

    @R S Chakravarti:
    stop your wondering. The headline means that entire Indian govt’s efforts to potray Pakistan as an unsafe place and isolate it have FAILED! Just like UNITED India vision of Indians in 1947 FAILED and now we have Pakistan, Bangladesh and India. Hopefully many more to come in the near future as Indians in Nagaland, Jarkhand wake up and smell the coffee!Recommend

  • Komal S
    Jul 10, 2017 - 7:22PM

    Good to know Pakistanis are getting investments. India is trying to politically highlight the terror angle of Pakistan. If you have more investments you take credit, if not, you take the blame too. Blaming India does not help.Recommend

  • Hasan
    Jul 10, 2017 - 7:56PM

    In fairness, the article itself, while very eye opening, isn’t nearly as entertaining to read as the comments from our resident horde of hindustanis – it’s always icing on the cake watching them fumble around trying to deny the reasonably simple points that the article makes. Keep up the good work, you’ve made my day!

    HasanRecommend

  • Faisal
    Jul 10, 2017 - 8:44PM

    @Hasan:
    amazing isn’t it – the sound of 1 billion Indians crying in anguish simultaneously is priceless and heard around the globe several times to the tuned ears. :) Recommend

  • Pakistani-American
    Jul 11, 2017 - 1:20AM

    No surprises there…Recommend

  • Faisal
    Jul 11, 2017 - 1:48PM

    @Venu:
    then how come your Indian govt keeps objecting to the Chinese investements overall and in particular in Pakistan saying its a strategic threat to India? Recommend

  • Rana
    Jul 11, 2017 - 4:14PM

    @Faisal: They come here for their leisure time pass.They do not take these seriously.These types of article give them a good laugh.Recommend

More in Business