ISLAMABASD: Germany on Friday ratified a new Bilateral Investment Treaty (BIT) with Pakistan, after obtaining the consent of its Parliament, which replaced the old agreement signed in 1959 for protection of investment.
It is pertinent to mention here that an updated version of the Treaty was signed on December 1, 2009 in Berlin during the visit of Prime Minister Syed Yousuf Raza Gilani. Pakistan ratified the new treaty in 2010.
The new Bilateral Investment Treaty will boost economic cooperation with Germany and it guarantees favourable conditions for German companies to invest in Pakistan, besides strengthening cooperation between corporate sectors of Pakistan and Germany.
Germany is an important source of Foreign Direct Investment (FDI) in Pakistan and several 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.