Pakistan, Germany sign new bilateral investment treaty

APP | 2 December 2009

Pakistan, Germany sign new bilateral investment treaty

Germany to provide insurance guarantees to companies investing in Pakistan, cover political and security risks

BERLIN: Pakistan and Germany inked a new bilateral investment treaty on Tuesday to “safeguard and promote” business interests and facilitate Islamabad’s efforts to attract foreign investment.

The new agreement also marks the golden jubilee of the first such agreement signed between the two countries on November 25, 1959, after World War II.

Prime Minister Yousaf Raza Gilani and German Chancellor Angela Merkel described the signing of the new agreement as “a historical step”.

“The agreement for encouragement and reciprocal protection of investments will boost economic cooperation and create favourable conditions for investors from the two countries,” a senior official of the Ministry of Investment told APP. The agreement was signed by Waqar Ahmad, minister for investment; Rainer Brudesle, German federal minister of economics and technology; and Peter Ammon, state secretary in the federal Foreign Office.

Insurance guarantee: Under the bilateral treaty, the German government would provide insurance guarantees to investments by its companies in Pakistan and cover their political and security risks. The agreement is likely to attract investment in oil and gas, energy, agriculture, textile and industrial units.

source: Daily Times