KCCI praises Dutch policy shift from aid to trade for Pakistan

our correspondentSunday, March 10, 2013 
From Print Edition

KARACHI: Haroon Agar, president of the Karachi Chamber of Commerce and Industry (KCCI), has welcomed the paradigm shift in the policy of The Netherlands from development / aid to trade for Pakistan that will multiply the reciprocal trade volume between the two countries.

“Pakistan endeavours to achieve GSP Plus status in the European Union and the Dutch government’s support is imperative to attain the GSP Plus by Pakistan,” he said, while exchanging views with Robert Dresen, first secretary / head of economic affairs, Embassy of the Kingdom of The Netherlands.

In 1982, Pakistan and The Netherlands signed a bilateral double taxation agreement to promote business activities between the two countries. Pakistan is the sixth largest non-European economic partner and 13th largest economic partner of The Netherlands in the world, he said.

Pakistan and The Netherlands established bilateral relations soon after the independence of Pakistan. Netherlands is among the top five investors in Pakistan and has invested around $8 million till 2012.

Pakistan invites The Netherlands investors’ to come and invest in textiles, energy, infrastructure, Agar said, adding that trade the volume is below $1 billion and is far below than its potential.

Pakistan’s exports to The Netherlands in January-June 2012 were $202 million, while imports were $165 million.

There is a huge potential of enhancing Pakistani exports of textiles, mangoes, rice and other products to The Netherlands, he said. Pakistan imports boilers, organic chemicals, plastic and its articles, iron and steel products, technical and medical equipment, etc.

He also identified that The Royal Dutch Airlines (KLM) may resume its operations for Pakistan. The KCCI can sign a memorandum of understanding (MoU) with the Amsterdam Chamber of Commerce for mutual cooperation.

He also invited the Dutch exhibitors to participate in the KCCI annual “My-Karachi, Oasis of Harmony” exhibition, scheduled to be held in July, which is a showcase and B2B & B2C platform, wherein local and foreign exhibitors participate.

Dresen said that The Netherlands has made paradigm shift in its policy from development / aid to trade, which will result in enhancement in trade volume between the two countries.

Actually, the people-to-people relations date back to 17th century when the Dutch East India Company established a trading post in Thatta; several trade missions followed. He said that huge potential of trade exists between the two countries, which is yet to be explored. The Netherlands was among the top 20 economies of the world in terms of gross domestic product (GDP), which is four times the size of Pakistan with a population roughly the size of Karachi.

The Netherlands is the fifth largest exporter of the world, wherein Pakistan has a negligible share of only 0.2 percent. The Netherlands is also the second largest exporter of agro-goods, and the ninth largest foreign direct investment (FDI) source as well as recipient. Philips, Unilever, and Royal Shell are some famous investors in Pakistan.

The Netherlands bilateral ties with Pakistan encompassed over 50 years; current bilateral trade is around $800 million annually, which often tilts to and from in favour of the two countries.

The Netherlands desires to uplift trade and envisage new areas, including shipping, ports development, water purification, dairy farming, agriculture, wind, biogas energy, solar, coal energy, offshore energy solutions, etc, equally beneficial for the two countries, he said.

He offered that Pakistan can avail of the benefits of Dutch expertise in energy saving / efficiency as conservation is crucial for businesses.

He said that The Netherlands also have expertise in water management / effluent treatment / industrial process, options of joint ventures in water treatment / industrial effluent treatment and environment protection do exist.

Pakistan’s major exports to The Netherlands include textiles, while there was a huge potential for imports in the areas of livestock and agriculture, he said, while Pakistan imports from The Netherlands chemicals, machinery, agricultural inputs / seeds, etc.

thenews.com.pk