The new version of Pak-German Investment Treaty has opened a new chapter of enhanced relations in the economic, trade and investment fields between the two countries.

This was said by Zahid Maqbool, President, Islamabad Chamber of Commerce & Industry (ICCI) while briefing business community at ICCI about the salient features of an “Agreement of the Encouragement and Reciprocal Protection of Investments” signed between the Federal Republic of Germany and the Islamic Republic of Pakistan on 1st December 2009.

He called upon the investors of both countries to step up their efforts for exploring more bilateral business opportunities as the new Investment Agreement provides for creating favorable conditions for investors in both countries and gives them legal protection along with fair and equitable treatment including respect for private property, transparency and the international arbitration of disputes.

He said about 2000 German companies are doing business with Pakistan  which is reflective of our growing bilateral economic relations. However, he invited more companies from Germany to invest in Pakistan, especially in energy sector as Pakistan is a destination to make profitable investments and expand private business initiatives.

He congratulated both countries for inking this landmark Agreement which has enabled investors of both countries to enjoy most-favored nation treatment in either state with regard to investment losses, compensation, indemnification and restitution thereof  owing to war or other armed conflict, revolution, a state of national emergency or revolt. He said their returns on investment and re-investment shall enjoy the same protection as their investment. 

He informed the businessmen that the Agreement shall also apply to investments made prior to its entry into force by investors of either state, but clarified that it shall not apply to any dispute or any claim concerning an investment which was already under political or arbitral process.

The businessmen were hopeful that this agreement will promote active partnership between the two countries and contribute effectively in enhancing bilateral economic relations between Pakistan and Germany.