‘Banking sector has high standards’

Investment opportunities exist but political instability a hurdle, says expert.

KARACHI: Pakistan’s banking sector has very high standards and meets its credit obligations compared with many global financial markets, said Vincent O’ Brien, International Chamber of Commerce (ICC) representative to the WTO Expert Group  on Financial Crisis and Chair of ICC Banking Commission’s Market Intelligence Group .

Speaking to The Express Tribune on the sidelines of an introductory workshop on Incoterms 2010, organised by ICC Pakistan, Brien ­­— who has 20 years of international trade banking experience — said that “in Pakistan, there is a strong traditional and moral obligation to meeting credit responsibilities”.

He also said that Pakistan has a lot of investment opportunities but political instability has marred the nation’s image. “For anyone who is familiar with the market, Pakistan is not such a bad place to invest and there is a lot of potential here,” he added. Brien also looks at the nation’s growth potential positively.

Referring to Incoterms, abbreviated for international commercial terms, he informed that these are basically international rules specifically for the buyer and seller. Incoterms are terms of the contract of sale between the seller and the buyer. The chosen term will impact directly on the obligation of the party to the contract of sale. These important commercial terms have evolved as terms used in the international contract of sale but usage as terms for domestic contracts are increasing given the need for greater transparency in trade- related businesses.

Brien explained that earlier there were 13 terms, which have now been reduced to 11 terms to further simplify trading activities. These terms will come into effect internationally on January 1, 2011 and ICC Pakistan is looking to have it adopted in local commercial practice and also into the laws of Pakistan.

Published in The Express Tribune, December 14^th, 2010.