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Tuesday March 19, 2024

Pakistan, Malaysia to sign $900mln business-to-business deals

By Israr Khan
March 22, 2019

ISLAMABAD: Pakistan and Malaysia are all set to sign approximately $900 million worth of business-to-business deals on Friday (today) with the Malaysian Prime Minister Mahathir Mohamad having arrived on a three-day visit, and the former hoped the agreements would pave its way for exploring three trillion dollars Asean market.

Adviser to Prime Minister on Commerce and Textiles, Industries and Investment Abdul Razak Dawood on Thursday said the government’s policy is to have business-to-business interaction with Malaysia and then through Malaysia, “we increase our integrations in far east Asia”.

“As Far East is the economically most high growing area in the world, we want to get into Malaysia and then through it to the Association of South East Asian Nations (Asean),” Dawood said, talking to media. Board of Investment (BoI) Chairman Haroon Sharif also accompanied him.

The advisor said the agreements would be related to telecom and information technology, Halal foods and auto sectors.

Malaysian tower company Edotco is to ink a memorandum of understanding with Pakistan Mobile Communication Limited, Deodar, Telenor Pakistan and CMPak. Fauji Meat is about to sign an agreement with a Malaysian company. Under the agreement, Malaysian company would import halal meat from Pakistan. Automotive firm Proton Holdings will hold a groundbreaking ceremony for business activation in Pakistan, in partnership with Al-Haj Automotive Private Limited.

“Malaysian Proton Car Company is very committed to come to Pakistan and it is now being formalising,” the PM’s advisor said. “It will not be government to government arrangement, but it would be mostly business to business.”

Dawood said Malaysia’s entry into Pakistani halal foods market would help exporters access central Asia, Middle East and western China.

PM advisor expressed his unawareness about the reason behind cancellation of oil payment deferred facility by UAE. The same facility with Saudi Arabia has been finalized, he said.

Dawood said people are coming to Pakistan to explore business opportunities despite tension with India. “Companies are coming to Pakistan to grab their market share, and they are interacting with the government. They are long-term players and want to invest here.”

PM advisor further said the government is working on to improve quarantine standards in fish and food exports sector.

BoI chief Sharif said Asean is centre of economic gravity and an important block in the region. “We have to learn from their technological advancements and business networks.”

BoI chairman said relationship with Malaysia is for mutual benefit as “we are offering them Pakistani market of more than 200 million people and they would connect us to western China”.

BoI is organising a business forum on Friday in which around 25 to 30 leading chief executive officers and heads of companies would attend. “We have arranged interaction of Pakistani companies.”

Sharif said various companies came to Pakistan in oil and gas exploration sector in the past, but they went back due to security issues.

“They went back as we did not provide them better facilities and environment to grow and they went to other place like Africa,” he added. “The government would have to give the same facilities what the other countries are giving to these companies.”

BoI chief said petroleum ministry is preparing an incentive package for oil and gas exploration sector. The first phase of energy and infrastructure under China-Pakistan Economic Corridor framework has been almost completed, while its second phase related to the industrial cooperation based on special economic zones is underway.