Pakistan UK Trade and Investment Roadmap
Road map builds on the Bilateral Investment Treaty signed in 1994 by Prime Minister John Major and late Prime Minister Benazir Bhutto
Introduction
This road map builds on the Bilateral Investment Treaty signed in 1994 by Prime Minister John Major and late Prime Minister Benazir Bhutto and the Enhanced Strategic Dialogue (ESD) signed by the Prime Ministers of Pakistan and the United Kingdom in Islamabad on 5 April 2011 where the two sides decided to further cement bilateral relations, including increasing cooperation in trade and investment.
Following the bi-annual review of the ESD in February 2012, the Foreign Minister of Pakistan and the UK Minister for Trade and Investment agreed to implement a jointly-owned Pakistan-UK Trade and Investment Roadmap. The Roadmap envisages actively pursuing joint activities on trade and investment promotion and improving Government-to-Government and Business-to-Business interaction.
Objectives
This Roadmap has the following objectives:
1. To achieve the target set by the two Prime Ministers of increasing bilateral trade to £2.5 billion by 2015.
2. To make for a more competitive trade and investment regime in Pakistan with UK assistance.
3. To improve the economic management of and business environment in both countries.
4. To provide for enhanced interaction between the business communities of both countries.
5. To increase the level of UK investment in Pakistan by building up confidence of existing and potential investors in the investment climate and policies of Pakistan.
Business Strand
1. The UK and Pakistan will encourage the creation of a UK Pakistan Chamber of Commerce in Pakistan to complement existing trade bodies in the UK and to develop business ties with such entities especially along sectoral lines including textile, R&D, energy, pharmaceuticals, retail & services.
2. The UK and Pakistan will support the Pakistan Britain Trade and Investment Forum (PBTIF) as the premier Pakistan focused business membership organisation in the UK, which will maximise links with business organisations in Pakistan including the UK Business Group in Pakistan.
3. The UK will aim to host an annual event in the UK to promote trade and investment opportunities in Pakistan, and raise awareness about these opportunities with UK business leaders through various media, publications and websites.
4. The UK will aim to send at least one trade delegation a year from the UK to Pakistan.
5. The UK will aim to commission a report that maps UK expertise to opportunities in Pakistan.
6. The UK and Pakistan aim to work with the London Stock Exchange to support events with an extractive industries and investment focus.
Government Strand
Under the auspices of the ESD, the UK and Pakistan agree to a regular Government to Government Dialogue to be established and co-chaired by the Commerce Minister/Secretary of Pakistan and the Trade Minister of the UK which shall comprise senior level representatives from the respective governments. The UK and Pakistan governments will take the following actions that will be reviewed as part of the ESD annual summit:
1. The UK shall continue efforts to ensure Pakistan’s market access through inclusion in the preferential trading arrangement of the European Union and also initiate the Free Trade Agreement (FTA) negotiations between Pakistan and the European Union.
2. The UK will work with the government of Pakistan to explore how it can help to maximise Pakistan’s gains from trade preferences, including the provision of technical advice and assistance.
3. The UK shall continue to work with Pakistan, including through development assistance, to support the implementation of key reforms that may encourage export promotion, foreign investment, labour productivity and efficiency, human capital development, overcoming energy shortage and achieving sustained economic growth.
4. The UK and Pakistan will both encourage the positive perception of Pakistan as a place for doing business.
5. Pakistan will deliver on the existing action plan to engage the EU on trade issues.
6. Pakistan will ensure a stable and predictable economic environment that encourages greater trade and investment.
7. Pakistan will support doing business in an open and transparent way to promote the UK as the gateway to Europe for Pakistani business.
8. Pakistan will create an attractive business environment for trade and investment, for instance by continuing to: improve efficiency and reliability of the energy sector; increase skills in labour force and investment in human capital.
9. Both sides shall address commercial issues raised by their respective businesses relating to trade and investment in the UK and Pakistan.
10. Both countries shall exchange information regarding their trade and investment policies.
Validity
The Roadmap shall be valid for three years after which it shall be automatically renewed unless one of the countries requests that it may be terminated.