UK plans to invest £665m in Pakistan

KARACHI: British Foreign Secretary William Hague on Thursday visited the Karachi Stock Exchange and expressed satisfaction over efforts at maintaining stability in the financial sector in Pakistan.

According to a media release of the KSE Mr Hague participated in a financial services roundtable and was impressed with the overview.

Speaking on the occasion he discussed the UK government’s plan to invest 665 million pounds in Pakistan. He solicited views of the participants on how best to utilise these funds.

Accompanying the foreign secretary were Adam Thompson, British High Commissioner, Robert Gibson, Deputy High Commissioner, and other members of UK Trade and Investment Office.

Zubyr Soomro, chairman KSE and Adnan Afridi, MD KSE, organised a financial services roundtable that included Yaseen Anwar, acting Governor State Bank, Dr Ishrat Husain, Dean IBA, Dr Mushtaq Ali Khan, Chief Economic Adviser SBP, Naved A Khan, president Faysal Bank, Anjum Iqbal, CEO Habib Metropolitan Bank, Moazzam M. Malik, CEO BMA Capital, Shahzad G. Dada, Chief Country Officer Deutsche Bank, Gulrez Yazdani, CEO Institute of Capital Markets, Yaseen Lakhani and Abid Ali Habib, directors KSE.

The roundtable included a presentation on capital markets and the Karachi Stock Exchange by Adnan Afridi. The participants stressed the resilience of the Pakistan economy and the maturity as well as sophistication of the private sector.

There was a consensus that vocational training combined with primary and higher education should be the focus as Pakistan has a young and fast growing population that requires skill development. Moreover, the participants stressed that public-private partnership model should be employed to leverage the UK funds for optimal impact.

The British foreign secretary hoped to see stronger relations between Pakistan and UK in trade and investment.

Talking to media he agreed to a questioner that Pakistan was still a better destination for investment. But he emphasised that Pakistan must focus on addressing the security issues for enhancing investors’ confidence.

The British delegation discussed issues of bilateral interest relating to financial services sector, employment, and education, health, investment and energy shortages.

At the conclusion of the discussions, the UK foreign secretary rang the ‘KSE Bell’ on the trading floor. He also met informally with KSE members.

Mr Hague later called on Governor Sindh Dr Ishratul Ibad Khan. He said that Pakistan was a suitable country for foreign investment and on his return he would encourage British investors to explore new avenues of mutual cooperation.

But he emphasised that it was necessary for Pakistan to ensure improvement in security situation to restore confidence of foreign investors. .

Mr Hague had wide-ranging discussions with the governor and said that the new government was taking stock of Pakistan’s needs and the purpose of his visit was to make these relations deep-rooted.

The British foreign secretary said that during the next four years Britain would provide 665 million pound, besides providing assistance for improving primary education in the country.

Governor Ishratul Ibad said that Pakistan’s law provided complete protection to foreign investors and their capital. He claimed that there has been significant improvement in the law and order situation in the country.

He also referred to Mass Transit Project in Karachi, besides water management, desalination and solid waste management and infrastructure development schemes and hoped that the British investors would invest in these schemes.

The British foreign secretary also made a courtesy call on the Sindh Chief Minister Syed Qaim Ali Shah and exchanged views on ways and means to improve bilateral relations.