Gilani for measures to boost Pak-Iran trade

ISLAMABAD :

Prime Minister Syed Yousuf Raza Gilani yesterday stressed effective implementation of the Preferential Trade Agreement between Pakistan and Iran to increase the two-way trade to US one billion dollars, reports APP. Talking to M.B Abbasi, Ambassador Designate to Iran, the Prime Minister pointed that the volume of trade in 2006- 07 between the two countries had remained around US $572 million.He urged the Ambassador designate to work for the expansion of list of items agreed for tariff concessions under the PTA, particularly for the inclusion of textiles, garments and surgical goods in the agreed list of items.Prime Minister also asked the Ambassador designate to work for early materialization of import of 1100 MW of electricity from Iran to meet the energy shortage in the country and for expeditious signing of gas sale and purchase agreement to operationalize the Iran - Pakistan - India gas pipeline project. The Prime Minister hoped that the rail link between Quetta and Zahidan would soon be upgraded to boost trade, and people to people contacts between Iran and Pakistan. He said Pakistan recognized Iran’s right to peaceful use of nuclear energy and hoped that Iran would be able to resolve its differences with the West on the nuclear issue within the framework of the NPT and IAEA. Prime Minister congratulated the Ambassador designate on his appointment and assured full support. Gilani underscored the deep rooted historical links, common faith and shared cultural heritage of Pakistan and Iran and stressed the need for further strengthening of the good neighbourly relations. He urged the Ambassador designate to resolutely work towards that end. Another report from Islamabad adds: Foreign investment inflow from Malaysia to Pakistan touched US$ 9.7 million for July, 2008 compared to US$ 0.6 million for the corresponding period last year registering an increase of US$ 9.1 million. According to data released by State Bank of Pakistan, in the month of July, 2008 Malaysia was the third largest country in term of foreign investment inflow after Singapore with foreign investment flow of US$ 214.5 million and South Korea US$ 24.7 million, said a message received here from Kuala Lumpur, Malaysia. According to State Bank, Pakistan has registered total increase of 76 percent in Foreign Direct Investment (FDI) in July, 2008 compared to July 2007. Closer look at the data revealed that the largest investment in July, 2008 was made in communication sector at US$ 159 million, followed by financial business at 34.4 million, oil and gas sector US$ 37.1 million, trade US$ 11.6 million and power sector US$ 8.1 million. According to Board of Investment of Pakistan there has been consistent increase in foreign investment flow in Pakistan since 2001-2002. The total foreign Direct Investment in the year 2001- 2002 was US$ 585 million that grew to US$ 5019 million in 2007-08 whereas foreign investment inflow for the month of July, 2008-09 alone stood at 340.7 million.