The UK to fund projects worth 1billion pounds in Pakistan
- The UK announced direct lending into infrastructure, roads, hospitals, and school projects in Pakistan.
- Exports worth 1.9 billion pounds have been made by Pakistan and imports worth 1.2 billion pounds.
- The UK is currently working on projects to encourage international companies and also to increase two-way trade.
Encouraging more British firms to set up facilities in the country, the UK has announced financing projects worth one billion pounds in Pakistan.
This announcement was made by the UK Her Majesty’s Regional Trade Commissioner for the Middle East, Afghanistan, and Pakistan (MEAP) region, Simon Penny.
While speaking to journalists at the British Deputy High Commission in Karachi, Simon said:
“UK announced an increase in our funding to support Pakistan from 400million pounds to one billion pounds.”
He said that Pakistan is very important to market for us and this is a very good example of how the UK is having confidence over Pakistan.
The funding was provided to the UK’s firms to do business in other countries through UK Export Finance (UKEF). Now, the same funding will be available for Pakistani companies and projects.
“It is the money that the UK will provide to Pakistan for Pakistani companies and Pakistani projects.”
On the occasion, the UK Deputy High Commissioner, Elin Burns said that the UK is actively working to boost investment and trade with Pakistan. She also spoke about consistency and predictably in the economic policies of Pakistan.
Penny told that the funding is not intended to compete with commercial banks or private sector banks. It aims at funding the projects that didn’t happen because of lack of funding in the private sector.
Projects to increase two-way trade:
The United Kingdom is also working on projects like How UK and Pakistan can work together to increase the two-way trade.
Total Trade between the UK and Pakistan:
During the fiscal year 2017-18, the total trade between the UK and Pakistan stood at 3.1 billion pounds. The trade balance remains in favor of Pakistan as Pakistan made exports worth 1.9 billion pounds to UK and imports worth 1.2 billion pounds.
“So you can see the UK is a very important export market for Pakistan,” Penny remarked.
Projects to encourage more international companies:
Penny said the UK is also working on the project of encouraging more companies to enter Pakistan.
“I met some important part of the UK government strategy. It is encouraging more UK businesses to invest in Pakistan and do business with Pakistan.”
He further said that we are very much focused on encouraging more companies to enter into Pakistan. There are many opportunities for international businesses in the UK to do business in Pakistan.
“Pakistan increased 11 places to 136 last year, it a very positive move and sends a very positive signal to do business in Pakistan,” he said.
This improvement in the World Bank’s ranking proves that Pakistan is taking serious measures to provide a sustainable environment for conducting business to attract higher Foreign Direct Investments (FDIs).
“Pakistan is not a long way behind the ambition to come in top 100,” Penny said.
Penny said that the government of Pakistan is focusing on the indices and it is very, very positive.
It is something that the British government has favored and committed towards Pakistan to improve the working environment. UK Aid Agency has invested heavily in programs that support Pakistan’s efforts to improve the environment for doing business.
This is Penny’s first visit to Pakistan during which he met a number of high-profile officials including Prime Minister Adviser on Commerce and Industry Abdul Razak Dawood.