DUSHANBE, May 31, 2011, Asia-Plus — Tajik-Pakistani trade and economic cooperation is expanded from year to year and a two-way trade between the countries amounted to 21.6 million U.S. dollars last year, which is three times more than in 2009; over the first four months of this year, trade between Tajikistan and Pakistan has reached 3.4 million U.S. dollars, Tajik Prime Minister Oqil Oqilov said on Tuesday.
Mr. Oqilov was speaking at the opening of the Tajik-Pakistan business forum in Dushanbe, which has gathered entrepreneurs from the two countries, including 110 business leaders from Pakistan.
Tajik prime minister noted that there was considerable room for expansion of economic ties between Tajikistan and Pakistan.
According to him, Tajikistan has reserves of water and power resources in the amount of 527billion kWh. At present the country is using only 6.0 percent of these reserves. Oqilov noted that Tajikistan was interested in investments for construction of hydropower plants and power transmission lines.
He stressed that Tajik electric power was very cheap. “That is why it is economically attractive,” Oqilov said, noting that the first steps are being taken to supply Tajik electricity to Pakistan.
The prime minister reminded that the Central Asia-South Asia Regional Energy and Trade project, also known as CASA-1000, aimed to establish the necessary transmission and trading infrastructure and systems to enable a trade of electricity between Central Asia and South Asia. The project is dedicated to connect power systems of Tajikistan, Kyrgyzstan, Afghanistan and Pakistan, he noted.
Tajik premier outlined sectors like energy, agriculture, light and food industries, minerals and tourism, as areas of which could drive the bilateral trade between the two countries.
He especially invited Pakistani investments in launching joint ventures in Tajikistan. “Twelve Tajik-Pakistani joint ventures now operate in Tajikistan and it is necessary to increase the number of them that will promote further strengthening of bilateral relations between our countries,” Oqilov noted.
He said that Tajik government was taking measures to make investment climate in the country more attractive for foreign business. “Over the five last years, foreign investment in the amount of 2 billion U.S. dollars have been attracted,” said Oqilov, “Tax benefits have encouraged foreign investment in the country. Thus, investors participating in hydroelectricity projects are exempted from nine types of taxes. Preferences are also granted to companies investing in construction of enterprises for processing primary aluminum and cotton. In all, more than 40 various benefits are stipulated for foreign investors.”
The prime minister also noted that four free economic zones (FEZs) were established in Tajikistan and Pakistani companies could work in those zones.
Mr. Haji Ghulam Ali, President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), for his part, said that Pakistani entrepreneurs were interested in investing in Tajikistan’s economy. “However, there are certain obstacles for this. There is no normal communication between the two countries: Tajikistan and Pakistan do not have direct air communication, while the ground communication between them via Afghanistan has been complicated by notorious events in that country,” he said.
Mr. Haji Ghulam Ali expressed hope that opening of the direct air service between Pakistan and Tajikistan would allow intensifying business contacts between the two countries.
The delegation of Pakistan entrepreneurs, numbering 110 people, arrived in Dushanbe on May 30. The industrial and services sectors represented in the delegation include: textiles, rice, pharmaceuticals, engineering, financial sector, food and agriculture, information technology, minerals, construction, travel and tourism, leather and so forth. Areas of interest in the Tajik economy for Pakistani investors include cotton, aluminum and hydropower sectors in which joint venture opportunities will be explored.
Pakistani entrepreneurs’ visit to Tajikistan will last until June 3 and the purpose of the visit is for Pakistani businesspeople to get acquainted with capacity of Tajikistan’s economy and study the possible priorities of cooperation.
