Islamabad Chamber of Commerce & Industry (ICCI) welcomed the signing of a new version of Bilateral Investment Treaty (BIT) between Pakistan and Germany during the visit of Prime Minister of Pakistan Syed Yusuf Raza Gilani’s visit to Germany and hoped it will promote multi-dimensional co-operation between the two countries including economy, defence, education, vocational education and other sectors. Inking of this BIT also marks the golden jubilee of the world’s first-ever such agreement signed between the two countries on November 25, 1959.

Zahid Maqbool, President ICCI termed the new BIT a very encouraging development as it will safeguard and promote business interests of the two countries. He said the new BIT will also send a positive signals to international investors to enhance their interest in Pakistan’s economy, which offers lucrative investment opportunities.

He said this agreement will further advance economic cooperation and promote favorable business relations between Pakistan and Germany. Under the BIT, Germany, the fourth largest trading partner of Pakistan, will provide insurance guarantees to investment of its companies in Pakistan and cover their political and security risks, besides giving them more independence and sovereignty.

Zahid Maqbool was optimistic that the agreement will boost confidence of German investors in Pakistan and attract more German companies into Pakistan’s oil and gas, energy, agriculture, textile and industrial sectors. It will also create new investment opportunities for Pakistani investors in Germany as it provides reciprocal protection of investments by either state in their respective territory.

He also hailed Germany’s announcement to enhance the development assistance to Pakistan from 80 million euros to 125 million euros and said this crucial assistance will help in improving and strengthening Pakistan’s economy. He said Germany can help Pakistan in exploiting the untapped coal, wind, hydro and solar energy potential as well as improve its water management system.

ICCI President said Germany is one of the largest economies of the European Union and it should support Pakistan with more trade, investment and enhanced market access especially in the EU, which will help the country to eradicate poverty & militancy through jobs creation. He said Germany should facilitate Pakistan in realizing a Free Trade Agreement with EU for improving its trade and economic ties with Europe and enhancing exports.