The Turkish investment, which matures in three years, will help increase an extremely low investment to GDP ratio that has plunged to historical lows. DESIGN: CREATIVE COMMON
Turkey has decided to invest one billion dollars in Pakistan’s communication, textile and automotive sectors during the next three years, according to Turgat Bayan, founder of the Pak-Turk Business Council.
According to the Board of Investment (BOI), Bayan informed the newly appointed Chairman Board of Investment Mohammad Zubair about the incoming investments from Turkey. Turkey has previously invested $370 million in direct investments in Pakistan.
The news is seen as a significant development that may boost dwindling investments long affected by red tape, a fact the PML-N government is trying to change. For the current year, the government has set an ambitious target of $ 2 billion in investment, more than double the investment that came in the last fiscal year. The Turkish investment, which matures in three years, will help increase an extremely low investment to GDP ratio that has plunged to historical lows.
“The country desperately needs to attract financial inflows to build up its dwindling foreign exchange reserves,” said Zubair, who was appointed the BOI chairman for five years by the PML-N government last week. Zubair previously served as the CFO of the American Multinational IBM for 25 years.
Turkey has also applied for the license of the Turkish TV channel Samanyolu in Pakistan that will broadcast Urdu and Turkish content simultaneously, according to Bayan.
Zubair also said that Turkey was interested in the hydropower and alternate energy projects in Pakistan and wanted to support the government to overcome the energy crisis
In the education sector, Turkey and Pakistan have been exchanging students in higher education. 23 Pak-Turk schools are also operating in Pakistan to promote Turkish language and culture in order to build cultural and economic linkages between the two countries.
Looking Further West
According to the BOI, Zubair is now trying to kick start the stalled negotiations on the Pak-US Bilateral Investment Treaty (BIT), which has been pending for over eight years. Both governments came close to signing a deal late last year but talks derailed after Pakistan’s security establishment expressed concerns over US investments in some sensitive sectors.
The US Ambassador to Pakistan Richard Olson has recently stated that Washington was waiting for a response from the Pakistani side on proposals forwarded to Islamabad.
Zubair will hold a meeting on Tuesday with Elizabeth Littlefiled, president and chief executive officer of Overseas Private Investment Corporation (OPIC), an American investment arm, to review the possibilities of US investment in Pakistan’s private sector. Though the meeting will primarily be centered on a better understanding of the investment climate in Pakistan, BOI officials have said the BIT issue could also be discussed.
OPIC has a $1 billion credit line set aside for energy projects in Pakistan. The BOI has singled out the Mahl Hydropower Project, 80 MW Neckeherdim – Paur Hydropower Project and 58 MW Turtonas – Uzghor Hydropower Project as open to OPIC investment.
Published in The Express Tribune, July 16th, 2013.
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COMMENTS (36)
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Dear Express Tribune, as a responsible newspaper you should reserve your discussion forums only for rational and honest debates in your discussion forums, which you as a responsible moderator are supposed to keep confined to the topic at hand. Why are you degrading the integrity of your own forum by publishing the third-rate rants of a Bengali troll parading his insecurity in his country's economic development (or, more accurately, the lack of it) on the discussion thread under an article that has nothing to do whatsoever with Bangladesh? Please assume some responsibility in how YOUR forum is being used.
@Dhaka: Wishful thinking on your part. You just have to come to Lahore and see our roads. I remember being stuck in traffic for hours in Dhaka where most of the roads are one lane or at the most two lanes. The reason Dhaka has more sky scrappers is because you have no land to build horizontal structures and hence vertical structures is the only solution. In Lahore land is cheap and still available not like Dhaka. 170 million Bangladeshi's are living in a country smaller than Sindh hence land is expensive and not readily available for construction activities. Your logic of more skyscrappers means better economic conditions is childish. I wish Bangladesh good luck for its future and pray it progresses by leaps and bounds.
@rehman: It is not only that pakistan have no major skyscrapers as of law, but also because people could not able to afford living in those expensive buildings.So realestate giants never prefer to make such buildings.As far as GDP is concerned, we will overtake your economy by 2020-2025.So don't worry.
@Dhaka: Why turkey not investing our country which is more promising and better infrastructure than pakistan ! We can give more return of turkish investment than risky pakistani market
HHMMMMM, ask them(Turkish) rather than whining over here. I personally have few Bangladeshi friends by the way, so have got nothing against your nation.
@rehman: Let the Bangladeshis celebrate their achievements including the big buildings they have in Dhaka. I wish the best for Bangladesh. In time, Bangladeshis will not have to go to neighboring countries like India and Pakistan for work. I have seen so many Bangladeshis in Karachi and my Indian friends tell me there are millions who similarly enter India illegally despite the fence that India has erected all around Bangladesh. Pakistan should focus on creating jobs and a stable environment for prosperity in their own country for its own people. Why argue about nothing when we know that no native Pakistani would want to go to Bangladesh or India for that matter for work. If there are more jobs and employment for Bangladeshis in their own country, they will not have to leave but build successful lives in Dhaka and other cities. So what is good for Bangladesh is good for the whole region. I am glad that Turkey is seeing new opportunity in Pakistan and I hope that more countries will also invest in Pakistan.
@Optimist: Definitely not..they dont like us why should we..if mr dhaka goes onto google and learns the collective gdps of both countrys ..bangladesh had a bigger gdp in 1971.until it went away and now pakistan has an economic output double the size of bangladesh...and he wants to talk about development in a country like bangladesh which cannot stand on its own because technically it has no potential as it is resource less and under water mostly...it is a low income country still.getting concessions from the eu to export jute and stuff ..so much for growth...by the way all this skyscraper stuff ..well let me tell u pakistan has a law on the number of stories of skyscrapers...just like london or any other european country..how many skyscrapers can u see in london or paris.
@Dhaka: a country which is a hundred billion dollars bigger than urs would certainly give a bigger return than a country with overpopulation creaking roads and not to mention no resources whatso ever. So definitely no wonder they are not interested in a swamp land which is under water half the year. Yes im talking about bangladesh
@Optimist: What i have to produce certificate that i am bangladeshi ??
@ Dhaka We love Bangladesh and would be happy to see it doing well. . Stop acting that you are Bangladeshi.
@muslim Were you really being serious when you said that? Tell me you were not.
@Asif:
Turkey is 99 percent Asia , 1 percent Europe, just to get the facts straight
@Paki: The reason we voted in PML N is because the economy is improving and Pakistan's presence on the world stage has improved. We witnessed a lacklustre previus 5 years under Zardari and even worse 9 years of Musharraf dictatorship, so as a Pakistani, I am thrilled to see that the Sharifs are finally getting Pakistan back on track. I am sure that not only will our major challenges be taken care of, the whole nation will improve- that's why the stock markets are generally so upbeat on Pakistan now.
@jibran: Man open your eyes and check :-
http://www.skyscrapercity.com/showthread.php?t=915818&page=75.
Now compare our city to your Karachi.Karachi does not have a metro bus neither metro rail. Only lahore have,but that too from Chinese and Turkish support and the bus metro system in lahore is very small and inferior quality.Nothing to proud of your country.Have you ever seen a skyscraper in your city or in your life ! I suggest you to visit Dhaka.
This news says: "The Turkish investment, which matures in three years.........................."
Why is there a fixed maturity period? Would appreciate if someone can explain.
@Umit ezirganlioglu: Thank you for your comment. It gives a warm heart felt feeling unlike the nasty comments that our eastern neighbours put on these pages everyday.
Turkey just ended an era with IMF, now planning on lending,money to IMF, that itself shows a developing economy, for investing in Pakistan, I m happy as a Turkish, becos we are real dosts (friends). Long live Pak_Turk friendship...
@golu
Turkey is part of Europe. It's not part of European Union. There is a different.
@antanu: If the economy of turkey were yielding the highest growth, who in the right state of mind will invest abroad, in a country which is run by a courts, has no work ethic, no security and stability, and is rife with power outages. UNLESS someone is getting kickbacks in the foreign country to give undue profits for the return on the investment.
@Dhaka: @Fahad: But we have metro bus, motorway, yellow cab, green tractor, and solar lamps.... do you?
@muslim: Simple but golden economic rule.. risk and returns are directly proportion… higher the risk higher the return
You got to be kidding me. There is difference between investment and gambling. I promise you 100% return on your investment. However, the risk of getting that and your investment is 100%. How much you want to invest now?
@antanu: Turkey is not a part of Europe. It wants to be but it isnt.
@Fahad: You are joker in 21st century.Your your so called financial hub karachi could not able to compete with Dhaka and now you are talking gujranwala.How many skyscrapers in karachi more than 30 floors ahh ?? Look at skyscrapers in Dhaka, you will astonish and more on pipeline.Your other tier1 city Lahore does not even have a single skyscraper .We have better rail and road connectivity than pakistan and our economy keep growing.
@Dhaka: Simple but golden economic rule.. risk and returns are directly proportion... higher the risk higher the return
@Dhaka:
haha..infrastructure of gujranwala in pakistan is better than dhaka. I personally have visited. and plz dont find it offensive but dude you need time to match Pakistan's infrastructure.
Investors invest where their money will multiply safely. The operative word is safely. The safety of investors money depends on rule of law improve rule of law and money will flow in. Rule of law will require some guts to make painful changes in the policy. Unfortunately guts to make decision in national interest is a rare commodity in Pakistan.
That's all?
@Truth: India is attracting huge FDI from many countries.... so...those countries are our masters?please.. please learn some basic of economics before posting comments on issues like this.
@malik: who says Turkey's economist is weak? please check / upgrade your study....Turkey is one of the fastest growing and progressive economies of Europe. please don't make. yourself a laughing stock by posting comments just for the sake of it.
just to corrrect u ... its the country that got rid of imf loans until recently and paid back all ....... its one of robust economies now .. talk wid facts mr......
Mr Zubair Umer elder brother of PTI Asad Umer is also now part of the game. The power will always remain in family circles as it was in the history.
Like it or not, Noonies are taking concrete steps to save and revive economy.. appoing Zubair Umer, former CFO of IBM , as chairman of BOI is a good move. After China, Turkey is also willing toninvest, good beginnings for noonies
After US, it was Chinese turn to be Pakistan's master and now it seems after China, Turkey will be there master.
Why turkey not investing our country which is more promising and better infrastructure than pakistan ! We can give more return of turkish investment than risky pakistani market.
Whats sweeter than Honey? Hmmmm. +++++++++++++++++++ Its time PM opened a Turkey cell in his Office.
Where will turkey get that sort of money? Their own economy is in shatters with their own youth demonstrating against the failed economic policies that cater only to the rich.
N league is known for Making personnel friends on state funds, I.e S.arabia, Turkey. What a nation we are we elect them over and over again