Mohsin Siddiqui (Chief Reporter)
With expectations of addressing concerns related to the clearing of outstanding amounts of circular debt, nine leading Polish private sector companies are set to visit Pakistan next week to explore joint ventures across various fields. This visit signifies a significant step in strengthening the economic ties between Poland and Pakistan, which have been bolstered by the Generalized Scheme of Preferences (GSP Plus).
The bilateral trade volume between Poland and Pakistan currently favors Pakistan, primarily due to the benefits of GSP Plus. Pakistan’s exports to Poland have reached approximately $666 million annually, while imports from Poland stand around $150 million, resulting in a total trade volume of $922 million, inching closer to the $1 billion mark. This surplus highlights the robust trade relationship and potential for further growth.
Upcoming Business Delegation Visit
In a recent discussion with a select group of reporters in the Diplomatic Enclave, Ambassador of Poland to Pakistan Maciej Pisarski announced the visit of a Polish business delegation to Karachi and Lahore from May 20 to May 24. This delegation aims to hold talks with Pakistani counterparts, including members of various chambers of commerce and industries. The focus will be on exploring joint opportunities in sectors such as green technologies, renewable energy, energy savings, water and waste management, air quality, green building, and smart cities.
The Polish ambassador acknowledged the challenges faced by Polish companies operating in Pakistan, particularly in the oil and gas sector. These companies are confident that ongoing discussions with Pakistani officials will create an enabling environment to enhance bilateral trade and investment opportunities. The Special Investment Facilitation Council (SIFC) is actively working to improve the investment climate in Pakistan, which is a positive sign for foreign investors.
One of the major issues highlighted by Ambassador Pisarski is the circular debt problem, which has impacted Polish companies, particularly concerning the repatriation of profits and recovery of outstanding dues. Despite these challenges, the ambassador expressed optimism that these issues would be resolved, as the Polish embassy is in active talks with Pakistani authorities. The matter has also been discussed with previous governments, including the Pakistan Democratic Movement (PDM) government and the caretaker administration.
The ambassador emphasized the importance of the agricultural sector, noting that Poland is a significant exporter of agricultural products within the European Union. He suggested that Pakistan could greatly benefit from the expertise and technological advancements of Polish companies in agriculture. This transfer of technology could enhance Pakistan’s agricultural productivity and sustainability.
The visiting delegation, comprising nine leading Polish companies, aims to gather firsthand information about investment opportunities in Pakistan. These companies are looking to collaborate in their respective fields of expertise, bringing innovative solutions and technology to the Pakistani market. The focus areas include green technologies and renewables, which align with global trends towards sustainable development.
While there is interest in various sectors, the ambassador noted that it is too early to predict if Polish companies will engage in Special Economic Zones (SEZs) being developed under the China-Pakistan Economic Corridor (CPEC). However, the ongoing dialogues and exploratory visits could pave the way for future investments in these zones.
