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Greek investors eye investment opportunities in Pakistan

Greek investors to benefit from Pakistan’s business friendly policies: FPCCI

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News Desk |

As of now, investing in Pakistan isn’t just serving the purposes of the super power stakeholders. In fact, by investing in Pakistan many other businessmen may benefit in various ways, in multiple social forms.

The falling Balance of Payments of our economy could use these investments as a key of increasing our exports, up to our productive capacity.

Pakistan is mainly known for offering comparative advantage to multiple organizations across seas, that benefit from its primary sector. Mostly the natural resources used to be the center of attraction of the investors. However, Pakistan offers colossal investment opportunities for Greek businessmen to invest in various fields.

These fields are of retailing, health, communication, oil refining, communication, electricity generation, publishing, industrial chemicals, fertilizers, financial services, technology, logistics and infrastructure.

Read more: More investment in Pakistan: Telenor signs deal with Ant Financial

The current trade volume between Greece and Pakistan is quite low, and can be improved. Exports from the Greeks to Pakistan amounted to EUR 20.61 million more than the previous year. On the other hand, imports from Pakistan rose hardly increased.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Regional Chairman Chaudhry Arfan Yousaf expressed certain views in a meeting with loannis Brachos, Secretary General for International Economic Affairs of the Ministry of Foreign Affairs, Hellenic Republic.

“Imports from Pakistan rose slightly to EUR 56.98 million”.

Brachos, himself, has shared foreign trade opportunities and policies in Greece.

Welcoming the Deputy Foreign Minister, George Katrougalou, Brachos took his opinion, as Koutougallas expressed that there was enough room for development cooperation between business communities of the two countries, and this opportunity should be seized. Moreover, trade opportunities further needed further exploration, on their part.

Mostly the natural resources used to be the center of attraction of the investors.

In addition to this, he stated that business synergies could be explored in areas of food and beverage, building and raw material, renewable energy, agriculture and pharmaceuticals, etc. He further suggested how small enterprises could take advantage from their activity in the mass markets of Pakistan.

He didn’t only magnify the primary and secondary sector; in fact, he gave suggestions regarding the tertiary sector as well. He further, expressed his interest to promote tourism areas, stating that “tourism is a key pillar of the Greek economy, and could be a field of cooperation towards common successful practices and goals.”

Read more: Pakistan: Education can be a strategic investment

As opinionated by other experts, Maria Roubina Markopolou, the President and founder of the Greek-Pakistani Chamber of Commerce and Industry, expressed that there is rapid growth in the telecommunications sector, however the infrastructure continues to lack in meeting the demands.

Even though investors might comment upon the flaws of this country, but “Pakistan, is ranked among the top ten countries worldwide, in terms of telecommunication (mobile phone network, connections), specifically, with over 130 million connections in the market, currently. And these companies provide value-added services, billing software, data services, retailing, etc.”

Sources like reports from World Bank indicate that Pakistan as an economy, currently stands as the 24th largest economy in the world in regard to the world purchasing power. It is also the 41st largest country with respect to the nominal GDP.

The benefit of these dealings will lead to a probable benefit on both pars. Pakistan as a state, due to continuous political instability has suffered in many aspects. Those aspects include, social, cultural and economic collateral damage being the most important.

The table below shows the current scenario of the Balance of Payments of Pakistan as per reported by the Government of Pakistan, Pakistan Bureau Of Statistics, Karachi.

MARCH 2018 APRIL 2018
Exports of Services Rs.47,947.54 RS.52,074
Imports of Services Rs.84,082.04 RS.94,103.35
Balance of Trade Rs.(36,134.50) i.e. negative RS.(42,028.60) i.e. negative
 

 

 

 

Exports Trade in goods

 

 

 

 

Rs. 250,065

 

 

 

 

Rs. 246,167

Imports trade in goods Rs. 591,741 Rs.589,741
Balance of Trade Rs.(341,6760) i.e. negative Rs.(343,574) i.e. negative

 

The falling Balance of Payments of our economy could use these investments as a key of increasing our exports, up to our productive capacity. This will not only our overall Gross Domestic Product, but positively change the percentage rise in our Gross National Product.

A GDP of a country doesn’t necessarily indicate its success rate, as many citizens of Pakistan are employed abroad which then transfer monetary funds to Pakistan which adds up in our GDP, which in fact is not Pakistan’s earning, it’s the earning of the Pakistani’s.

The increase in inflation accompanied by the devaluing of Pakistani currency, leads to foreigner’s purchases becoming cheap for them. They can buy more from us, in less prices, due to our humble exchange rate, i.e. a win-win situation for them.

With our growing niche markets, investors will benefit by our rates and productivity and therefore could use this as an opportunity to further benefit from these probable gains.


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