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FPCCI-S'pore Confederation

ink business co-operation pact

IQBAL MIRZA

KARACHI: A Business Co-operation Agreement (BCA) was signed between the Federation of Pakistan Chambers of Commerce and Industry and the Singapore Confederation of Industries at a simple ceremony held at the Federation House here on Wednesday afternoon.

Senator Ilyas Bilour, President, FPCCI, and Tan Wah Thong, Honorary President, Singapore Confederation of Industries (SCI) signed the agreement on behalf of their organizations.

The two Vice-Presidents of FPCCI, Akbar Zia and Mehmud Ahmed, were also present at the signing ceremony.

In response to a very encouraging picture painted about the investment opportunities in Pakistan, Thong who is also leader of the Singapore trade and investment mission now visiting Pakistan, assured Bilour that the sentiments expressed by him would be conveyed to the businessmen in Singapore and they would be encouraged to have a close look at the opportunities now available here for foreign investors.

With the signing of the BCA, FPCCI & SCI agreed in general, to support the development of business through:

- Ongoing exchange of data and business information,

- Co-operation with and assistance to trade and investment missions organized by the two bodies.

- Providing advice and assistance to individual companies and business people who are visiting the respective countries, and promoting trade fairs and other special events.

Replying to the address of welcome presented by Senator Ilyas Bilour, the SCI President said that the present mission was basically of an exploratory nature to learn and see what Pakistan had to offer to foreign investors.

He was candid in his replies and told a questioner that Indonesia, Malaysia, Vietnam and China offered better terms and conditions to foreign investors.

The transparency and opportunities were better in these countries than in other countries, he said. It is a competitive world and capital would flow to those lands where it is safe and incentives are more attractive, he said.

Earlier, Senator Ilyas Bilour, highlighted that Pakistan and Singapore enjoyed close and cordial relations since long. The bilateral trade between the two countries has grown significantly, he said, and added that Pakistan's exports to Singapore increased from 90.16 million dollars in 1993-94 to 105.31 million dollars in 1994-95, while imports from Singapore also rose from 163.78 million dollars to 185.68 million dollars during the same period.

The weightage of trade, however, Bilour said, is heavily against Pakistan and there is an urgent need on the part of Pakistani exporters to explore new trade opportunities and adopt aggressive export marketing strategy to enhance Pakistan's share in total imports of Singapore.

There are bright prospects for increasing our two-way trade. What is really needed is that the two countries should optimize the mutual economic cooperation and be partners in progress by identifying the frontiers of common interest.

The FPCCI President said: "We are proud that Singapore has entered into the ranks of industrialized economies of the world which is a remarkable achievement. Singapore is world's ninth richest country in per capita terms with an average income of 22,300 US$, ahead of Britain and New Zealand. With the growth rate of 8.9 percent and inflation rate of just 1.8 percent, in 1995, the Singapore economy is poised to achieve rapid economic development in the foreseeable future.

The people of Singapore deserve our commendation for demonstrating a phenomenal economic growth during the last 20 years under the selfless leadership provided by Lee Kwan Yew, the founding father of Singapore, who gave top priority to social discipline. We are keen and eager to learn from your experience so that we may also develop our economy and enter the 21st century with honour and dignity.

"I am happy to note that the visiting Singapore delegation comprises big companies dealing in electronics, power generation equipment, oil & gas, energy and telecommunication.

There is ample scope for cooperation in these areas, he said, and invited the Singapore investors to collaborate with Pakistani entrepreneurs in establishing joint ventures, particularly in the fields of electronics, computer software development and construction of small hydel power plants. Pakistan can well prove to be an ideal production base for you in view of its sizeable domestic market, hard-working labour force, advantageous geographical location and an investor-friendly climate. The Singapore entrepreneurs can enter into joint ventures in small and medium-sized industries through equity participation and transfer of technology for mutual benefit.

"It is refreshing to note, that during Prime Minister Benazir Bhutto's official visit to Singapore in March last year, an investment guarantee agreement was signed between the two countries aimed at giving the Most Favoured Nations (MFN) treatment to each others investments.

This agreement has provided a new dimension to Pak-Singapore relations. During the Prime Minister's visit, MoU's worth $500 million were signed with the Singapore companies to build fly-overs, high-ways, container terminals and ports in Pakistan.

The private sector of Pakistan is eagerly looking forward not only to the early implementation of these projects but also to an active participation of Singapore investors in other prospective ventures in Pakistan. We also seek the collaboration of the enterprising businessmen of Singapore in joint ventures in trading to diversify and boost our exports.