Trade ties: Pakistan holds great potential for Danish investors

Danish business team arrives to hold talks with govt officials, business

ISLAMABAD: Denmark sees great potential of investment in Pakistan, especially in energy and textile sectors. A Danish trade delegation has already arrived here to explore opportunities for investment and trade in various sectors.

They are likely to hold meetings with government officials and the business community, marking the start of a new era of relations between Denmark and Pakistan.

“The visit will send out positive vibes to encourage investment,” Ambassador of Denmark Jesper Moller Sorensen said in an exclusive interview with The Express Tribune.

“Pakistan’s economy is growing with a budding middle class and a relatively conducive business environment offer great potential for Danish companies,” he said.

While describing his embassy’s work as ‘relatively narrow’, the ambassador said that the Danish government had decided to provide more resources to the mission to support the companies that are interested to invest in Pakistan.

Adding to that, he said that efforts of the mission on the commercial side go hand-in-hand with the broader policy objectives for Pakistan.

“Increased opportunities for the business community of Pakistan will encourage growth and generate jobs, which was the best way to alter terrorism,” he said.

The mission is active in their development assistance programme and is reaching out to the people to create awareness of their activities.

The current trade volume between both the countries is approximately $425 million which can be increased.

Denmark, a small open economy is highly dependent on trade with other countries. Foreign trade and investment are the driving forces for the Danish business.

He explained that Danish companies are globalised and were working with emerging markets of the world.

“With technology and land at low cost in Pakistan there was great scope for Danish companies to establish their concerns here,” he said.

The Generalised System of Preferences (GSP) status given to Pakistan by the European Union has also made it more attractive for sourcing companies, especially in the textile sector.

“The surplus or deficit is not important, but the combined trade which must increase,” said the ambassador.

He said that few Danish companies have been active in Pakistan for decades and some are doing very well and there was significant room for improvement.

Jens Holst-Nielsen, Director of International Trade and Market Development at the Danish Confederation of Industries, stated that he sees this first Danish business delegation as a very positive development in the Danish-Pakistan relation.

“Our expectations to the outcome of the visit are high and the response among Pakistani companies and authorities is a living proof of the friendly and open-minded relations that already exist between the two countries.”

The delegation of the Confederation of Danish Industries, represent different sectors — from heavy industry to service providers. “They reflect the interest of Danish companies to engage in new relations for trade and innovation with Pakistani companies and authorities,” said Holst-Nielsen.

Also part of the delegation is a representative of the financial institution, the Danish Investment Fund for Developing countries (IFU).

During their week-long visit, the delegation will meet prominent Pakistani companies in Karachi, Lahore and Islamabad.

Senior government officials scheduled to meet with the delegation include Punjab Chief Minister Shahbaz Sharif and Minister for Commerce Khurram Dastgir Khan.

Exclusive business seminars with individual company meetings will also be arranged in all the three cities. Danish companies will also participate in broader match-making receptions in Karachi and Islamabad. “As a group we will send a strong message to our Pakistani hosts that Danish Companies are ready for business,” said Sorensen.

Published in The Express Tribune, October 25^th, 2014.