German envoy highlights Volkswagen project challenges

Urges business leaders to diversify and expand export portfolio

KARACHI:

Consul General of Germany Dr Ruediger Lotz has emphasised the critical need for diversifying exports to Germany, particularly in the textile sector. While acknowledging that 85% of Pakistan’s exports to Germany consist of textile products, Lotz stressed the importance of diversification to enhance the current trade volume.

During his visit to the Karachi Chamber of Commerce and Industry (KCCI), Lotz expressed admiration for Pakistan’s textile industries and commended Karachi for its economic significance, noting that the city generates tax income for the entire country.

Addressing a query about the initiation of Volkswagen operations in Pakistan, Lotz explained that production faced delays due to import restrictions imposed a year and a half ago. The vehicle manufacturing company was hindered from importing necessary machinery for the project. Even if the import restrictions are lifted now, starting production would take at least a year and a half. Lotz expressed uncertainty about whether Volkswagen would pursue the project further, attributing the hesitation to the economic challenges facing Pakistan.

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Lotz acknowledged that the high volume of visa applications has led to delays. To address this, he has instructed his staff to prioritise students and businessmen seeking visa appointments.

KCCI President Iftikhar Ahmed Sheikh disclosed that Pakistan’s exports to Germany declined from $1.75 billion in FY22 to $1.60 billion in FY23, marking an 8.62% year-on-year drop. Sheikh emphasised the mutual need for both countries to reduce trade barriers, diversify product ranges, simplify customs procedures, and promote SMEs to foster collaboration.

Published in The Express Tribune, December 30^th, 2023.

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