German envoy urges removal of trade hiccups

LAHORE: German ambassador Martin Kobler on Tuesday said Pakistan needed to put an end to redtapism and start rolling out red carpet for foreign investors to attract inflows from European countries, especially Germany.

“Procedures for investors in Pakistan are complicated and slow down the

investment. Pakistan needs to create one-stop-shop solutions for the foreign investors” Kobler said at the inauguration of first ever official newly established Bosch showroom by BSH Hausgeräte GmbH.

“German companies were interested to invest in renewable energy projects including solar and wind energy. However, due to complicated procedures in land acquiring and other issues investment is slow.”

Kobler made it clear that German firms did not work on kick-backs model of business, so they only need enabling investment climate for the new projects. “German investment moves to favorable environment countries,” he added.

To a question about China-Pakistan Economic Corridor (CPEC) projects, Kobler said German and other European investment will come into Pakistan once the mega project is materialised. “Bilateral trade volume between Pakistan and Germany is $2.6 billion, out of which $1.5 billion is Pakistan exports to Germany and $1.1 billion imports which need to be improved,” he said.

Appreciating the efforts of Punjab government for the promotion of investment and trade in the province, he suggested proper handling of foreign investors so that they don’t have to face procedural hurdles.

Responding to another query, Kobler said Mercedes was already in Pakistan but no production plant. “I have read the news about Volkswagen but [as far as I know] no German auto makers are coming to Pakistan [as yet],” he mentioned.

Speaking on the occasion, Tomas Alonso, BSH Home Appliances FZE CEO, said German companies consider Pakistan a preferred destination for trade and business and Pakistani market offer immense potential of bilateral trade between two countries. “BSH Home Appliances aims to expand its sales and distribution footprint in Pakistan and is working to expand its retailer/distributor network across country,” Alonso added.

He said the country was now one of the emerging economies of the region and with annual population growth of more than two percent the country has one of the highest growth rates in Asia.

“We are targeting to become the number one home appliances supplier in Pakistan by doubling the T/O year-on-year” Alonso said in a country like Pakistan, which has been facing power shortage issues; it’s imperative that hundreds of millions of daily usage household appliances such as refrigerators, oven, dishwashers, and washing machines etc. consume less energy to save the power.

“Bosch’s small and large home appliances were very much efficient in terms of less energy consumption undoubtedly the best choice for Pakistani households,” he added. He was of the view that in a low inflation high growth economy like Pakistan, an affluent consumer base was growing fast. “This base is forecast to increase by around 6 percent annually and both factors are having an overall positive effect on local purchasing power” Alonso said.