Trade between Pakistan, UK may be higher this year

Friday, January 08, 2010
By Farhan Zaheer

KARACHI: Over 100 UK companies have been functioning and performing well in Pakistan while others are keen to learn more about this market where entrepreneurial skills are thriving and opportunities attract new companies, said Sir Andrew Cahn, Chief Executive of UK Trade and Investment (UKTI).

He was speaking at the Institute of Business Administration (IBA) on Thursday. Cahn, who is on a two-day visit to Pakistan, said trade in goods and services between the UK and Pakistan was worth £1 billion last year and it is expected that this year bilateral trade will be higher.

Shedding light on the role of UKTI, he said the UKTI will help over 45,000 UK companies this year, from SMEs to multinationals, by providing advice and support in overseas markets.

Some of the UK’s best-known companies are operating in Pakistan like BP, GSK, Barclays and some of the leading retailers such as Mothercare and Costa Coffee. Some have been here for so long that they are part of the fabric of the country, he said.

UK companies need to be made aware of the exciting business opportunities in Pakistan. “There is issue regarding security, which is as much about perception as reality, but the 100 UK companies that are operating here are performing well,” he said.

Later, talking to media at the British Deputy High Commission on Thursday evening, he said the UK is poised to assist the government with a view to combating the shared threat of violent extremism and meet the economic challenges they face.

“We remain strongly committed to our partnership with the Pakistani people.” Cahn said: “Imagine the investment potential. The numbers are staggering.

Karachi is home to an estimated 18 million people; that’s the population of the UK’s 30 biggest cities combined.” Pakistan has made great economic strides since independence. It has transformed itself from a low skilled agrarian economy to a modern industrial nation. Despite the series of challenges it has faced, GDP annual growth over this period has averaged 5.1 per cent. Of its 170 million populations an estimated 50 per cent are under 25 years of age, he added.

Business regulations have been overhauled in Pakistan to become the most liberal in the region. Unlimited remittance of profits, dividends, service fees or capital is permitted along with 100 per cent ownership of equity by foreign investors in the social, infrastructure, manufacturing and service sectors.

Karachi is also the closest port to northern India and the Central Asian states of Afghanistan, Tajikistan, Kyrgyzstan, Kazakhstan, Uzbekistan, Turkmenistan and large swaths of China. British companies have done well in Pakistan. They find the regulatory environment favourable.

“We have been consistently among the top four largest international investors and our joint trading figures are now approaching $2 billion.” The UKTI team in Pakistan is committed to enhancing and deepening trade and investment relationship between UK and Pakistan. “We will do all we can to highlight the many opportunities that exist in Pakistan and to encourage British companies to avail themselves of those opportunities.”

Pakistani companies and trade organisations need to look at more innovative ways to overcome the perception barriers to more trade and investment. There are strong opportunities for UK companies wishing to do business in Pakistan in agriculture, health, pharmaceuticals, financial services, oil and gas, telecommunications, power, manufacturing, education & training and marine sector.