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Pakistan records $7 billion foreign investment this year

Islamabad, Pakistan | July 02, 2007 by D-8 Secretariat

Pakistan Minister for Privatization and Investment, Zahid Hamid said on Saturday that the country has set a new record of the foreign investment as it achieved $7 billion of investment this year.

According to Zahid Hamid, the privatisation, de-regulation and liberalisation are the corner stones of highly successful Pakistani economic reforms introduced by the government under the leadership of President Pervez Musharraf and Prime Minister Shaukat Aziz.

The Minister said due to the prudent reforms and consistency and continuity in the economic policies and good governance, the economy of Pakistan continues to register rapid growth, averaging more than 7 percent during the last four years.

Commenting on NIB Bank's acquisition of a majority shareholding in PICIC, he said it is the policy of the government for providing an enabling environment for private sector investment including physical and technological infrastructure and requisite social service.

Governor State Bank, Dr. Shamshad Akhtar said that Pakistan is leading in banking sector in the region, adding, "Now even some developed countries are viewing our banking sector as role model."

She said the NIB is 10th largest bank and its investment in PICIC will give it a broad-based exposure to Pakistan's growing economy via financial sector.

The Governor believes that the increasing level of foreign investments is testimony to the growing international confidence in Pakistan.

Speaking on the occasion, Executive Director and CEO Temasek Holdings, Ms. Ho Ching emphasized that Temasek has a positive long term view of Asia.

Over the last 2 years the group has doubled their exposure to Asia from 19% to 39%.

Temasek believes in core principal investment themes, such as transforming economies and Pakistan is certainly one of the most promising countries in this respect.

The Government's courage, wisdom and commitment to free up the economy has given Pakistan a 6 to 8% economic growth over the last several years.

Temasek's earlier investment in NIB Bank and now in PICIC gives us a broad based exposure to this growing economy via the financial sector, she added.

The other theme reflective in Temasek's investment strategy relates to a thriving middle class which is clearly expanding in the economic growth pattern of Pakistan.

She said, through the combined platform of NIB and PICIC, we can benefit from and contribute towards a vibrant economy.

This will be done by providing credit to the families to buy homes, vehicles and household items and also through support to the wave of entrepreneurs, big and small to build their businesses.

Through such innovative services, the new combined bank can help create additional wealth for their clients and build a sustainable franchise.

Pakistan, she said is also blessed with high quality human capital both inside and outside Pakistan.

"We believe that this will be a key comparative advantage that Pakistan will deepen as she invests in education and opens up her market," she added.

With a wealth of talent there's an ample scope for younger generation of Pakistanis to start new businesses, grow new industries and revitalize Pakistan 's traditional industry base.

Madam. Ho Ching said "We see NIB together with PICIC as an emerging champion in the domestic banking space."

The merger of NIB and PICIC will provide a platform to develop many new products and service offerings.

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