Trade pact with Pakistan on way
Gulf Daily News
12th January 2007
Trade pact with Pakistan on way
By TARIQ KHONJI
BAHRAIN and Pakistan have vowed to step up negotiations for a Free Trade Agreement (FTA), which could be signed before the end of the year, Pakistani Ambassador Iftikhar Hussain Kazmi told the GDN.
The decision follows a visit by an official delegation led by Crown Prince and BDF Commander-in-Chief Shaikh Salman bin Hamad Al Khalifa to Pakistan last month.
Negotiations had been stalled as Pakistan had focused on multilateral talks for an FTA with the entire GCC as a block, said Mr Kazmi.
But it was decided that Pakistan should pursue both avenues to speed up results.
"Of course, an FTA with the GCC would take care of the Bahrain FTA as well, but bilateral talks are usually faster than multilateral ones," said Mr Kazmi, adding that a GCC FTA could also happen this year.
The Bahrain delegation visited Pakistan from December 20 to 22.
The Crown Prince met with President Pervez Musharraf and Prime Minister Shaukat Aziz, with whom he exchanged views on a range of issues including Palestine, Iraq, Kashmir, Afghanistan, terrorism and nuclear developments in the Middle East, including the Gulf.
Pakistan and Bahrain also agreed to negotiate the establishment of a joint investment company on a 50-50 basis.
It will be designed to promote investment both in Pakistan and in Bahrain in areas such as energy, IT, housing, trade financing, real estate and other development projects.
Both countries are negotiating an agreement on the promotion of protection of investments, which is expected to be signed shortly.
"Bahrain will send a business delegation to Pakistan to explore options for enhancing bilateral economic co-operation and availing of opportunities for foreign direct investment in both countries," continued Mr Kazmi.
"The next meeting for the Joint Economic Committee (JEC) between Bahrain and Pakistan is to be held in March or April this year in Islamabad."
Mr Kazmi said that an FTA between Bahrain and Pakistan would be beneficial to both countries.
"Pakistan’s strategic location near Iran, Afghanistan, India, China, the Gulf, and the countries of Central Asia makes it a regional hub," he said.
"There are also talks of crude oil pipelines connecting Iran, Pakistan and India, Turkmenistan, Afghanistan, Pakistan and India, and Qatar, Pakistan and India."
Bahrain’s main exports to Pakistan include petroleum, as well as chemicals and aluminium.
Pakistan exports textiles, rice, consumer goods, chemicals and other products.
During the visit the Bahrain delegation was given a multimedia presentation on opportunities for foreign investment in Pakistan.
The two sides also signed a Memoranda of Understanding (MoU) to pursue annual political consultations between the foreign ministries of each country and for social development co-operation.
