Good Evening Ladies and Gentlemen,
 
It gives me great pleasure to be in your beautiful city and in the company of such dynamic and accomplished members of the business community of München.
 
We are living in unprecedented times. The challenges confronted by humanity, in the face of COVID-19, have impacted all aspects of our existence. Unity and determination in the face of this challenge are paramount.
 
The world needs to come together to support each other to recover and rise from the shock this pandemic has generated, specifically the economic and financial one, that threatens the existence/ survival of households across the globe.
 
In my country, Government’s daring and dynamic reform programmes had started to yield results, with the economy picking up and foreign investments coming in – there has been an adverse effect of COVID-19 shutdowns. To minimize the losses, Government’s introduction of the “smart lockdown” has helped in reducing the spread of the virus and provided support to the business community. But a lot still needs to be done. 
 
Life cannot return to normal till our economies begin to recover to help affected households and people. This is the time to unite and find synergies in working together through cost effective investments. This is where my country- with readily available skilled labour and cheap raw materials comes in - to provide mutually beneficial opportunities to businesses like you to invest in the fields of manufacturing, energy, textiles, sport goods, automotive industry, Information technology, etc.
 
Investment liberalization has been the strongest driver of global growth for decades, giving a significant boost to economies in developed and developing countries. Around the world, countries are adopting liberalized policies to attract FDI. This is even more important in the post COVID-19 world. Self-reliance, investment liberalization and promotion are the way forward to regain the losses brought about by COVID-19. 
 
I would like to introduce you to the investor friendly Investment policies of the Government of Pakistan.
 
The Government has introduced the “Investment policy 2020 (IP-2020)”- which is an evolutionary enhancement and continuity of the earlier Policies and consolidates fresh initiatives promulgated by the line ministries, introducing strategic measures for its implementation. 
 
IP 2020 takes into account, global investment and regional trends and experiences, and the present day economic challenges. The Policy focuses more on ease of doing business, using Special Economic Zones (SEZs) as a tool for structural transformation, elimination of redundant regulations and improving the existing ones, improvement of soft and hard infrastructure and enhancing the competitiveness of firms, so as to achieve economic sovereignty.
 
The goal of Investment Policy 2020 is to address and adjust economic priorities in the face of changing global and regional economic scenarios, so as to address the economic imbalances and to achieve the targets given in the 12th five-year plan and other goals such as sustainable and inclusive economic growth, industry innovation and infrastructure development, as committed by Pakistan under sustainable Development Goals (SDGs) of 2030 agenda of Sustainable Development of the United Nations with special focus on bridging the gender opportunity gap. 
 
After the completion of early harvest phase of China Pakistan Economic Corridor (CPEC) under the global Belt and Road Initiative (BRI), wherein majority of infrastructure projects have been completed and Gwadar Port is operational, there is a huge potential for foreign investors to set up and expand their businesses in Pakistan. IP 2020 aims to transform the business environment in the country by providing efficient, convenient, transparent and integrated services to investors for promoting investment in labour intensive, import substituting, and export led industries to achieve sustained current account surpluses for requisite investments in education and health of the people of Pakistan.
 
The policy will be instrumental to achieve progressive increase in net FDI inflows and to enhance the Investment to GDP ratio from existing level of 15.4% of GDP to 20% of GDP in the next four years. 
 
Policies to Promote Investment:
 
In Pakistan, there is a shortfall of over 10 million houses. Government intends to promote access to low cost affordable housing to the people of Pakistan and jump start the housing sector. Naya Pakistan Housing Authority (NPHA) has been created for the purpose of planning, development, construction and management of large-scale housing projects. NPHA aims to facilitate all local and foreign builders/investors involved in the construction industry by acting as a 'One Stop Shop' to remove impediments, strategize and to execute a wide-ranging plan to attain the set objectives. Measures are being taken to promote and facilitate housing finance.The Government plans to construct 5 million houses through all the three modes; private sector, public sector and on public-private partnership basis. Several incentives are also being offered to attract private sector investments in this sector. 
 
Restrictions on foreign real estate developers have been removed to provide them a level playing field with domestic developers. FDI in Real Estate sector and profit repatriation therein, is allowed, subject to the Rules/Regulations and procedural requirements set under the Foreign Exchange Manual of the State Bank of Pakistan. 
 
Of the existing Power Generation Capacity, the Govt. has set itself a target of achieving at least 20% on-grid Renewable Energy generation capacity by the year 2025 and at least 30% by 2030. A comprehensive Alternate and Renewable Energy (ARE) Policy, 2019 has been developed to achieve the stated targets. New capacity additions will be made and the retiring plant shall be replaced with Alternate & Renewable Energy Plants (AREPs). Procurement of AREPs will be through auctions, preferably on annual basis. Plant and machinery imported by existing or new industrial concerns shall be free of import duties for manufacture of AREP or components. 
 
Pakistan's automobile industry is one of the fastest growing in world. The production and sales have both grown by 171% and 172.5% respectively between 2014-2018, which has been fuelled by the Automotive Development Policy 2016-21.The Policy offers tax and import duty incentive to new automakers including one time duty-free import of plant and machinery for setting up of a unit for manufacture or assembly of vehicles, concessional duties on import of localized and non-localized/completely Knocked Down (CKD) parts and import of Completely Built-up (CBU) at concessional duties, for test marketing. 
 
To mitigate climate change and reduce oil import bill, a comprehensive Electric Vehicles (EV) Policy has been introduced. A package of incentives for EV manufacturing units, EV components and module manufacturing, charging infrastructure and battery swapping stations; and incentives for different categories of vehicles like cars, two and three wheelers, buses and trucks has been introduced. The Policy will ensure an era of clean air in the country for the future generations. (looking for a partner for getting electric cars for Pakistan, alongwith charging stations and some transfer of technology).
 
In 2018, the British Backpackers Society ranked Pakistan as the World's top adventure travel destination, describing the country as "one of the friendliest countries on earth, with mountain scenery that is beyond anyone's wildest imagination." Forbes ranked Pakistan as one of the 'coolest places' to visit in 2019. The World Economic Forum's Travel & Tourism Competitiveness Report placed Pakistan in the top 25% of global destinations for its World Heritage sites. 
 
Despite the huge potential in all types of tourism including adventure, cultural, eco, and religious tourism, the influx of tourist is still not comparable to similar sites elsewhere. To tap the potential all the provinces have developed frameworks and incentives for the development of tourist assets like accommodations, food and beverage, recreation and entertainment, transportation, and travel services. Govt also aims to develop integrated Tourism Development Zones for the promotion of Tourism industry in the country. These Zones would not only serve to showcase tourism potential of the country but would also ensure the preservation of natural beauty, biodiversity, forests cover and promotion of eco-tourism at the newly established tourist resorts. 
 
Pakistan's IT sector is carving a differentiated position as the preferred source for software development, Business Process Outsourcing (BPO) and freelancing. Pakistan was ranked at number four for freelance development in the world and IT exports have increased by 70% during the last three years. Pakistan has more than 2000 IT companies and more than 300,000 English-speaking IT professionals with expertise in current and emerging information Technology (IT) products and technologies. The government of Pakistan continues to facilitate the IT industry through numerous sustainable development and accelerated digitization project. Incentives to bolster growth include 100% equity ownership, 100% repatriation of capital/dividends, tax exemption on IT & IT enabled services export revenues, tax exemptions for startups and subsidized Software Technology Parks. Govt is also working on the development of Ecosystem and round the clock E-payment Gateway facility for the importers/exporters to pay customs duties, taxes and other dues online through internet banking and automated teller machines, for clearance of consignments. 
 
Government has also announced a number of Investment Incentives. Industrial units bringing in technology for the first time, that is not available in Pakistan shall be declared a Pioneer industry.  Special incentives at par with special Economic Zones shall be allowed to such industry.
 
Investment in research and education and human resource development are being encouraged. Linkages between foreign investors and universities and research institutes are being supported to design the training programs to introduce innovation and upgrade the skills of staff according to their needs. Investment through the development of Technological SEZs are also being encouraged through provision of incentives. 
 
There shall be 10 year Income Tax holiday and Customs duty exemption on the import of plants and machinery for installation in industries set up in the approved Special Economic Zones. 
 
A comprehensive incentive package for new export led industries parked in the Special Economic Zones along the same lines as export oriented units is being developed under the SEZ Act. The SEZ Act, 2012 shall not be amended to the disadvantage of SEZ enterprises or developers. 
 
Government would continue supporting clean and sustainable economic growth through investment policy interventions. 
 
One of the main considerations for foreign investors is governments' ability to provide statutory protection to their investments. Investors avoid entering in market if risk is difficult to ascertain and mitigate.  My Government is fully committed to assurance of basic rights of due process, enforcement of law and contract, and provision of security. To achieve certainty and clarity to investors, relevant laws on investment are being consolidated to modernize the legal regime. An investor’s grievance mechanism is being developed to prevent legal disputes at an early stage. 
 
I look forward to seeing most of you, if not all, in Pakistan, creating a synergistic relationship for the benefit of both Pakistan and Germany.  
 
I thank you all.