Pakistan And Germany Enhance Economic Cooperation

by Ulrika Lomas, Tax-News.com, Brussels

07 December 2009

Pakistan and Germany have inked an economic agreement to promote and protect investments in their respective countries.

Under the scope of the agreement, investors in the respective countries are safeguarded from political and security risks to their investments. The agreement is designed to facilitate increased trade and joint ventures between the two countries, particularly in energy, agriculture, industry and textiles.

Commenting on the signing of the agreement, Pakistan’s Prime Minister, Syed Yusuf Raza Gilani, said:

“The new instrument is more investment-friendly. It builds upon our long-standing corporate relations and takes them into a new era of mutually beneficial collaboration.”

The signing of the agreement was set up to mark the 50th anniversary of the first bilateral agreement between the two countries. The agreement is the 47th of its kind concluded by Pakistan.

Gilani called for negotiations of a proposed free trade agreement to begin to further boost economic ties, and called on German entrepreneurs to invest in Pakistan.

Pakistan offers foreign investors special tax treatment, exempting them from tax when remitting royalties, capital, profits and dividends, and technical and franchise fees from operations within its Special Economic Zones.

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