Pak investors assured of incentives in budget
DAWN, ISLAMABAD, June 8

Finance Minister Shaukat Aziz has said that the budget for 2004-05 will offer incentives to foreign and local investors and urged US companies to invest in Pakistan particularly in power and transportation sector and development of port facilities.
Talking with a high-level US delegation which called on him here on Monday, the minister said that Pakistan witnessed a GDP growth of 6.4 per cent during the 2003-04, while GDP growth target for next fiscal year had been fixed at 6.6 per cent.

The delegation comprised April Foley, vice-chairperson US Exim Bank, Michael Lengpes, vice-president, US Overseas Private Investment Corporation (OPIC) and Barbara Bradford, Director, US Trade and Development Agency (USTDA). US ambassador in Pakistan Nancy J. Powell was also present.

The minister informed the delegation during the 2003-04 Pakistan had seen buoyant stock market. The aggregate market capitalization exceeded $25 billion, which was poised to attract foreign portfolio investment.

”The benefits of macroeconomic improvement will allow more resources for improving health, education and infrastructure development thus helping job creation and economic growth. The government’s policies in the SME sector will increase competitiveness. The US can leverage Pakistan’s geo-strategic location to make it a regional manufacturing hub,” Aziz said.
Exim Bank vice president April Foley appreciated some tough decisions made by Pakistan to improve its economy. “We are extremely supportive of Pakistan’s policies particularly with reference to improve investment climate, transparency, respect for contracts, resolving disputes etc.,” he added.

Aziz said that the government had revamped Securities and Exchange Commission of Pakistan (SECP) and appropriate rules had been framed on accounting, auditing and disclosures for public limited companies thus improving corporate governance.
Ms Foley said her bank would send a team to Pakistan to look into the possibility of extending its facilities to private sector. She congratulated Pakistan for upgrading of its export credit rating, which would reduce its cost of borrowing.

She also expressed Exim Bank support for telecoms, power, and transportation and infrastructure projects. OPIC vice-president Mr Lempess said that OPIC had created a $50 million equity fund for investments in South Asia and Pakistan would benefit from these investments.