Sit-down: French expansion in Pakistan expected

Ambassador says companies willing to invest more in the country.

KARACHI:

Despite ‘typos’ over the country’s economic growth, investors remain somewhat pleased with the turnaround the country has witnessed.

France Ambassador Philippe Thiebaud, too, said he was hopeful that several French multinational companies would expand their business in Pakistan, ushering in an era of increased bilateral trade between the two countries.

Thiebaud, in a media briefing at the French consulate, said Total – a French multinational integrated oil and gas company – was looking to expand and take over the oil distribution network in Pakistan. “They are in the process of finalising the deal,” he informed the media.

“Pakistan faces a grim situation on the energy and terrorism front, though France has assisted the country in its power crisis,” he said, referring to the Uch-II power plant owned by a French company in Balochistan. The plant has been operational since April 2014, generating 1,000 megawatts of electricity.

Thiebaud explained the mechanism of the European market post-eurozone crisis, indicating great potential for Pakistani exporters as the local population reaches out to cheaper products. “We are quite convinced there is more that can be done in the trade and commerce sectors,” he said.

Despite market competition from the EU and non-EU countries, he believes Pakistan’s mature textile industry has the potential to move ahead of the rest, provided it expands its value-added sector of the industry.

“Like other parts of the world, Europe has different groups of population and a large part of consumers, with the economic slowdown, wants to buy cheap products. This provides a lot of opportunities for Pakistan,” he said, stating that quality is not necessarily the basic requirement.

“France is more focused on manufacturing luxury brands of which 80% are sold internationally.”

The envoy said that in the first quarter in 2014, Pakistan’s exports to the EU have increased 20% compared to the previous year — declaring GSP Plus status a reason for the development.

“The status has been granted for 10 years. This should improve the capacity of Pakistani exporters to strengthen their partnership with European importers,” he said.

In June this year, a Pakistani business delegation visited France, headed by the Pakistani Business Council and Pak-France Business Alliance, met their counterpart, the Movement of the Enterprises of France.

The ambassador added that a French delegation is expected to visit Pakistan in the first quarter of 2015.

Published in The Express Tribune, July 16^th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.