Bangladesh to go for joint ventures with Pakistan
Pakistan Times Business & Commerce Desk

DHAKA (Bangladesh): With adoption of some liberal initiatives by Pakistan government, bright prospect has been created to promote joint ventures with Bangladesh in leather, textiles, pharmaceuticals and sports goods’ sectors.

Local pharmaceutical companies like Beximco, Acmi and Square have already started opening plants in Pakistan, said an official of Pakistan high commission here Friday.

Beximco has a plant in Lahore; Acmi also has a plant in Karachi according to the official. Local Hameem Group is planning to establish a textile and also ceramics factory in Pakistan.

A delegation of top business leaders from Pakistan is coming Dhaka soon to negotiate about establishing textile factories in Bangladesh, according to a local business leader.

On the other hand, Pakistan has taken a number of initiatives to boost its foreign investment from Bangladesh, said Roubina Toufiq Shah, Commercial Secretary of High Commission for Pakistan.

The new scheme aims at investment and promoting transfer of technology, modern plant and equipment etc, according to the Pakistan High Commission sources.

The government of Pakistan has launched a scheme to encourage investment and joint ventures in several sectors in Pakistan that can be sustainable in the country with easy availability of raw materials, skilled labour and highly developed infrastructure for production and exports.

Pakistan took an initiative during last three years to improve Pakistan’s competitive position and investment in Pakistan. Accordingly, import duties on industrial raw materials were reduced in consultation with stakeholders of various industrial sectors of the economy to 5% or 10%.

Schemes under the National Policy Initiatives, include establishment of Textile Cities at Karachi, Lahore and Faislabad, Garment Cities in big industrial cities like Karachi and Lahore with complete infrastructure required for export, Cluster Development Centres for leather, cutlery, jewellery, Export Processing Zones at Karachi, Gawader & Gadoon with an attractive investment policy.

Pakistanis Export Promotion Bureau is offering financial assistance to help joint ventures and new investments. It is also maintaining a list of Pakistani businesses that seek joint venture partnerships in the areas of textiles, leather and leather goods, hotel, tourism, steel, engineering, pharmaceuticals, food processing and fisheries etc.

‘Pakistan is especially focusing on reducing the cost of doing business, rationalising the regulatory framework, providing necessary infrastructure and promoting an enabling business-friendly climate in the country,’ Roubina Taufiq Shah, Commercial Secretary of Pakistan High Commission told BDNEWS.

She said, ‘Continuity, consistency and connectivity are essential prerequisites of a stable policy environment. This has made a positive impact on the current account balance of the country, opening up of foreign investment and increased FDI, with foreign exchange reserves exceeding US$ 12 billion.’

Local entrepreneur Chairman of Prime Textile MA Awal prefers joint investment in Bangladesh.

‘Our foreign investment package is better than Pakistan ..... why should we go there, we prefer them to come in, he said.

The trade balance is in favour of Pakistan. Pakistan exported goods worth $ 195 million in the fiscal 2003-04 to Bangladesh while it imported goods from Bangladesh worth $ 45 million.●