Pakistan a key for regional development

TUV Austria CEO considers Gwadar Port, road links with China major projects.

LAHORE: The world is very optimistic about the future and potential of Pakistan as its geographical position, coupled with huge natural resources, is a key in the eyes of many global business groups which consider the country a game-changer for the region.

However, considering Pakistan an interesting marketplace with a large population, many stress the need for policy development, especially in the oil and gas sector, along with timely completion of mega projects.

“Pakistan is an important country in the region with an ideal geographical location, so we should not underestimate its role and importance for future development of the region,” said Stefan Haas, Global Chief Executive Officer of TUV Austria Holdings, in an interview to The Express Tribune.

For Haas, the Gwadar Port and the railway and road links with China are key projects on which the future of the region depends.

“This port will really make a difference for Pakistan as currently all goods transported to this region take long routes which makes them somehow costly. Once completed, the transportation time will come down and if you are faster, then you are more connected to the markets,” he said.

He cited the example of the Port of Rotterdam, which had connected European nations. Though industrial clusters do not exist in Rotterdam, but the port is a key for European countries for a faster shipment of goods to the market.

TUV Austria Holdings has been active in the areas of occupational safety, quality and environmental protection since 1872. In Pakistan, the company is making some investment, particularly in the oil and gas sector, to perform services for the industry and is providing management system certifications for local companies.

Talking about oil and gas deposits, Haas said there were lots of oil and gas reserves waiting to be explored in Pakistan. But to tap them, a firm government policy is the need of the hour as many active oil companies are willing to invest.

“As the world is growing so is the oil and gas demand and what this tells us is that this industry will be a cornerstone for the oil producing countries and for Pakistan also.”

Haas said currently global oil prices were falling and it seemed unwise to invest in such a scenario as new discoveries might not pay off to the companies. But the expectation is that oil prices will rise significantly in the future to levels where investment will be feasible.

In Pakistan, he added, the policy did play a significant role as oil companies were getting more or less fixed prices and it depended on the price level, whether new exploration activities should be financed or not.

Talking about hurdles to doing business, Haas was of the view that the potential was much more than the impediments. “We are not thinking about the problems but the solutions and potentials at this time.”

Interestingly, he had not many complaints against the bureaucracy as he believed that bureaucratic hurdles were a global issue.

Published in The Express Tribune, December 1^st, 2014.

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