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Germany links energy investment to security
* Merkel says her country is looking to increase its investment but Pakistan must improve security situation and legal system so that investors feel safeBERLIN: Germany is looking to increase its investment in Pakistan’s energy sector, provided companies are reassured about the security situation, Chancellor Angela Merkel said on Tuesday during a visit by Prime Minister Nawaz Sharif.
Merkel said Germany’s KfW state development bank was already involved in projects in Pakistan including hydro power plants, but added that the security situation was sometimes a deterrent. “We can look at intensifying these (investments), as long as the conditions are right,” Merkel told a joint news conference with Nawaz. “It is important that the prime minister is successful in improving the security situation and the legal system so that investors feel safe,” said Merkel, adding that the agricultural sector also offered opportunities.
Nawaz urged German firms to invest in his country. “Pakistan is facing an acute shortage of energy,” he said. “We believe in the next three years we should be able to have at least additional capacity of about 4-5,000 megawatts of electricity,” he said adding that would increase further in the longer term. Nawaz said German firms, some of them world leaders in renewable energy technology thanks to the country’s shift to green energy and away from nuclear power, were keen to invest.
Germany is Pakistan’s fourth-biggest trading partner, and the largest within the European Union, Sharif said. Bilateral trade totalled about 1.9 billion euros last year with Pakistan selling mainly textiles, leather goods and basmati rice to Germany while Germany exports predominantly chemical products, machines and vehicles to Pakistan. Prime Minister Nawaz said on Tuesday said that Germany has pledged to improve its economic ties with Pakistan and cooperate in the energy sector.
“There is a lot of interest of German businessmen to invest in energy sector in Pakistan as the country is facing acute shortage of energy and the government is aggressively pursuing the policy to attract foreign investors,” the prime minister said while speaking at a joint stakeout ceremony along with German Chancellor Angela Merkel after their bilateral meeting. The prime minister said they held a productive meeting with special focus on bilateral relations. The two sides exchanged useful views on regional and global issues.
Nawaz said Germany occupies a special place in Pakistan’s foreign policy and both Pakistan and Germany enjoy traditionally warm and friendly ties. The prime minister said that leadership of both the countries are committed to further consolidating these mutually beneficial ties. He said that for several years now Germany has been Pakistan’s fourth largest trading partner globally as well as the largest in the European Union. “Pakistan offers the most investors friendly climate when compared in the world today and the German businesses can benefit from it, by participating in multiple sectors of our economy,” Nawaz said, adding that Pakistan’s energy sector in particular is lacking large investment.
The prime minister welcomed the decision of the German government for establishing an Energy Forum in Lahore and also its decision to cooperate in water disaster management. He said that scourge of terrorism continues to haunt the world, adding Pakistan is still paying forbiddingly a heavy price in fighting this menace. He expressed confidence that Pakistan will soon succeed in defeating this menace. Prime Minister Nawaz said that both the countries have mutually agreed to further strengthen their ongoing engagement in the field of counter terrorism. Germany has played an important role in the development of Pakistan’s social sector, he said, adding that both the countries have also decided to continue their collaboration in the field of higher education.
He said both the countries have rich culture and Pakistan greatly values the decision of German government to sponsor its archaeological sites and to preserve UNESCO heritage site at Makkali. The prime minister appreciated the German government’s decision of expanding its ongoing vocational training programme in Pakistan.
Courtesy www.dailytimes.com.pk