Bilateral trade: Japan to continue support despite hurdles

Poor law and order situation, high taxes keeping investors and buyers away.

RAWALPINDI: Japanese investors are reluctant to invest in Pakistan due to the law and order situation in the country, said Japanese Ambassador to Pakistan Hiroshi Inomata during his visit to the Rawalpindi Chamber of Commerce and Industry (RCCI) on Monday.

Besides security, the ambassador also identified high taxes on the export of textiles, as another reason why Japan is not prioritising imports from Pakistan.

Compared to Pakistan, India and Sri Lanka have low tax rates on textile exports, he said, adding that despite these drawbacks Japan is still interested in increasing bilateral trade relations with the country and will support all activities initiated in this regard.

“Japan would assist Pakistan in technical support and interaction between business communities to boost trade. Japanese companies are already working in health, education and energy sectors here, and mutual cooperation would be enhanced in the future,” he said.

He exchanged these views during a discussion with RCCI President Syed Asad Mashadi during the visit.

Mashadi was of the opinion that Japan must transfer technology to Pakistan along with increasing investment in the country. “Trade volume between the two countries is around $2 billion and it is the need of the hour to take solid steps to boost business activities.”

He announced that RCCI trade delegations will participate in two exhibitions being held in Tokyo this year to promote direct interaction between business communities from both sides.

Published in The Express Tribune, February 17^th, 2015.

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