Siemens, IKEA eager to invest in Pakistan

ISLAMABAD: Siemens and IKEA have shown eagerness to invest in the Pakistan Railways and auto sector of the country, an envoy said on Wednesday.

During a meeting with Board of Investment secretary Fareena Mazhar, Pakistan’s Ambassador to Germany Dr Mohammad Faisal said that Siemens and IKEA are interested in investing in the country.

The foreign companies showed their interests in Gwadar-Pasni Railways and the auto sector, and discussed areas for investment in Pakistan.

He said the German investors are interested in hydrogen production through excess power available in Pakistan, adding that it was an untapped segment, which had good investment prospects, as it is an excellent alternative fuel for the future.

The BoI secretary informed the ambassador about recent developments in the Bilateral Investment Treaty (BIT) and the new template approved by the Federal Cabinet.

Fareena Mazhar said that the BoI would move forward with a new template after consultations with the Foreign Office, while the ambassador assured her of his full support in this regard.

Speaking about the investment facilitation, she highlighted the incentives introduced for investors, especially in the domain of tax exemption in the Special Economic Zones (SEZs). adding that the tax-free regime of SEZs has a great potential for attracting investors.

She apprised the ambassador about the recent tax reforms regarding elimination of minimum turnover tax for zone enterprises.

Both sides underscored the importance of regular coordination between the Board of Investment and the German Embassy.

They also decided to make a detailed plan for holding an investment conference in Germany to highlight the investment opportunities in Pakistan.

Moreover, some important meetings between German business giants and the BoI secretary are expected as a result of their interaction.

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