Islamabad: Germany has ratified new Bilateral Investment Treaty with Pakistan after obtaining the consent of the Parliament, here today. The modern version of Bilateral Investment Treaty was signed on 1 December 2009 in Berlin during the visit of Prime Minister Syed Yusuf Raza Gilani, says a press release received here today from Berlin.
Pakistan ratified the new treaty in 2010. After ratification by Germany, the new Bilateral Investment Treaty replaces the old agreement for protection of investment, which the two countries had signed in 1959.
Entry into force of new Bilateral Investment Treaty will boost economic cooperation with Germany. The Treaty guarantees favourable conditions for German companies to invest in Pakistan. It will strengthen cooperation between corporate sectors of Pakistan and Germany.
Germany is an important source of Foreign Direct Investment (FDI) in Pakistan. Many German companies are doing business in Pakistan. During financial year 2009-10, Germany was the fifth largest source of FDI in Pakistan.
Germany is Pakistan’s largest trading partner in Europe. Bilateral trade in 2010 increased by over 22 percent compared to 2009. Exports for Pakistan registered highest ever figure in a calendar year to stand at over US$ 1.13 billion.
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