Country report on Germany by Codefreak

President & Chief Editor:

Prof. S.B. Hassan Associate Editor:

Mrs. Atia Hassan Assistant Editors:

Syed Farhan & Syed Azfar Hussain Editorial Advisors:

Naila Salman & Dr. S.M. Salman Advisor Planning & Development:

Dr. Zeeshan Khalid General Manager:

Shujaat Hussain Rizvi Vice President & COO:

Salman Hassan

M. Rizwan Rathore

45th year of regular & uninterrupted publication

H. Haji Muhammad (Sammy) Abdul Samad Qadri P.O. Box No. 7578 EXECUTIVE CONTACT Ph: (92-21) 35394424 - 35382411 Fax: (92-21) 35394423 Cell: 0300-8236579 Email: iandm.pk@gmail.com URL: www.iandm.pk

EDITORIAL ................................................................................................................................. 02 EVENT:

Conference on Quality, Health, Safety and Environment organized by I&M................................. 05

The German government .............................................................................................................. Pakistan-Germany relations - key representative.......................................................................... Exclusive Interview........................................................................................................................ Mr. Dieter Freund, Deputy Head of Mission, German Consulate in Karachi Exclusive Interview........................................................................................................................ Mr. Saifuddin N. Zoomkawala, President, Pakistan German Business Forum Germany at a glance...................................................................................................................... Strong economic hub in the global market ................................................................................... Economic Policy of Germany ........................................................................................................ 2011 Annual Economic Report - Executive Summary.................................................................... 10 Reasons to invest in Germany .................................................................................................. Trade Fairs in Germany 2011......................................................................................................... Economy in facts and figures......................................................................................................... Development cooperation with Pakistan ...................................................................................... News in Pictures ............................................................................................................................

Photographers:

Â&#x201C;Investment & MarketingÂ&#x201D;

Contents SPECIAL REPORT:

Creative Incharge:

An International Economic Journal Published from Pakistan

07 11 13 15 19 21 27 29 42 43 45 47 51

Editorial & Business Offices PRINCIPAL OFFICE Suite # 10-B, 2nd Floor, Pak Chambers, West Wharf Road, Karachi-74000 (Pakistan) Ph:(021) 32312410 Fax: (92-21) 32310295 OVERSEAS OFFICE 1634, 44St., N.W. Washington D.C. - 20007, USA Ph: (202) 333-3432 Fax: (202) 333-4072 Published by S.B. Hassan and printed at Sohail Press, Jai Ram St., Off. Outram Rd., Pakistan Chowk, Karachi-2, Ph: 214635 March - 2011 The views and opinions expressed in this journal are not necessarily the views and opinions of the Editor.

Price: .................................. USD $ 10 Issue # 563

AL RI

The relations between the Federal Republic of Germany and Islamic Republic of Pakistan have a tradition of cordial and amicable relations. The government of Germany is very keen to see stable development in Pakistan, which is one of Germany's most important trade partner in South Asia. Prime Minister of Pakistan, Syed Yousuf Raza Gilani visited Germany from 30 November to 2 December 2009, and met with German Chancellor Angela Merkel, among other distinguished personalities. The two heads of government agreed to step up cooperation between the two countries, particularly in the economic and cultural sectors. In late 2009, a Pakistani-German Parliamentary Friendship Group was formed in the parliament, which made a visit to Germany in May 2010. The Prime Minister's visit was followed by visit of Germany's Federal Minister for Economic Cooperation and Development Dirk Niebel in 2010. In the month of January 2011, the German Foreign Minister Guido Westerwelle also paid a visit to Pakistan. The German Federal Government has provided EUR 35 million for humanitarian emergency relief in response to the devastating floods of 2010 . The relief measures are being implemented by German non-governmental organizations and international organizations such as the United Nations Refugee Agency and the World Food Programme. More than EUR 200 million in private donations was collected in Germany for the flood victims in Pakistan. The efforts of the German government and NGO's are applauded throughout Pakistan.

The number of German companies operating in Pakistanis has been on the rise again since 2010. German and Pakistani companies with an interest in bilateral economic relations have joined forces to create the Pakistan German Business Forum (PGBF). German Organizations are very active in Pakistan for the last many years, Siemens is the market leader in the field of Energy and Environmental Care, Industry & Public Infrastructures and Healthcare.. Siemens is Pakistan's No. 1 supplier of high-voltage grid stations, switchgear products and systems, power distribution and power transformers, and network consultancy. Directly and indirectly Siemens provides employment to more than 4000 persons across the country. Allianz EFU is Pakistan's First and only specialized health insurance company. It is a joint venture of Pakistan's largest insurance group, EFU with Allianz SE which is one of the largest composite insurers in the world with active presence across the globe. DHL is the largest air express company in Pakistan and has its offices in over 43 locations, supported by over 200 vehicles and over 500 employees. Bayer, another leading German company, is involved in effective products, pioneering innovations and keen customer focus, holds global leadership positions in crop protection and non-agricultural pest control. BASF ,the largest chemical company has a strong presence in Pakistan. Leading German Automobiles namely Mercedes- Benz, BMW and Audi have strong clientele in Pakistan. companies are also actively participating in industrial fairs in Germany. An investment promotion and protection agreement was signed in Berlin on 1 December 2009 during Pakistani Prime Ministers Gilani's visit. The following bilateral agreements are in place between Pakistan and Germany: " air transport agreement " double taxation accord " framework agreement on Technical Cooperation (as amended by annual arrangements on Financial and Technical Cooperation) " agreement on cooperation in scientific research and technological development

In 2010, GermanyÂ&#x2019;s bilateral trade with Pakistan grew to approximately EUR 1.6 billion

Economic and Trade Relations

Germany's bilateral trade with Pakistan grew in 2010 to approximately EUR 1.6 billion, compared with EUR 1.4 billion in 2009. In 2010, Pakistan recorded a small surplus in trade with Germany, German exports to Pakistan amounting to EUR 778 million and German imports from Pakistan EUR 855 million. Pakistan's principal exports to Germany are textiles, leather goods, medical instruments, Basmati rice and jewellery. Pakistan's main imports from Germany are chemical products, machinery, electrical goods, vehicles and iron goods. Recently, the Pakistani government signed Gas Sales Purchase Agreement (GSPA) with Iran for the IP pipeline and awarded a consultancy contract to Germany-based firm ILF, which would work with the National Engineering Services of Pakistan (Nespak). The consultancy contract has been divided into two phases, costing $55 million.

Development cooperation with Pakistan

This year, the German-Pakistani development cooperation is celebrating its50th anniversary. Germany having accomplished projects worth a total of EUR 2.2 billion since 1961. Pakistani government, bilateral cooperation focuses on the following priority areas: " basic health care " basic education and vocational training " energy supply (with a focus on renewable energy and energy efficiency)

www.iandm.com.pk

Vol: XXXXIV

The Corporate Social Responsibility programs of German companies like Merck, Siemens, BASF, DHL, Bayer etc have improved the lives of many Pakistani citizens in urban and rural areas.

The main institutions that are active in enhancing the cultural relations between the two countries are the German Academic Exchange Service (DAAD) and the Alexander von Humboldt Foundation on the German side and the Higher Education Commission (HEC) on the Pakistani side. In addition, there are exchanges between specific departments of several German and Pakistani universities (with a focus on chemistry, ethnology and cultural geography and the languages and cultures of South Asia). In September 2009, the DAAD opened an Information Centre in Islamabad. In 2010, a total of 400 young Pakistanis received support under various programmes in Germany largely in cooperation with the HEC. Germany is one of the most popular countries for young Pakistani researchers wishing to pursue a PhD, alongside the USA, the United Kingdom and France. Engineering and natural science programmes are most in

Vol: XXXXIV

demand among Pakistanis studying in Germany. In 2010, there were a total of some 1,300 Pakistani students in Germany, most of them paying their own way. As part of the Federal Foreign Office's global "Schools - Partners for the Future" initiative (PASCH), German language instruction is gradually being introduced at several secondary schools in Pakistan. Nationwide, there are currently seven schools - in Karachi, Lahore, Islamabad and Peshawar - participating in PASCH. Under the initiative, pupils from several PASCH schools were invited to attend international summer camps in Germany organized by the Goethe Institute in 2009 and 2010. Gemany has demonstrated genuine interest in Pakistan's economic development for many decades, and this is widely appreciated in all sections of Pakistan's society. There is great scope and potential for further growth in cooperation between the two countries, in sectors like energy, pharmaceuticals, textile equipment, education. Pakistani organizations should benefit from the technological expertise of Germany. It is hoped that ratification of the investment promotion and protection agreement will serve to promote economic and trade ties between the two countries. The Corporate Social Responsibility programs of German companies like Merck ,Siemens, BASF, DHL, Bayer etc have improved the lives of many Pakista ni citizens in urban and rural areas. These programs can b e considered a model for other multinational c o m p a n i e s . Renewable energy technologies that reduce carbon emission in the atmosphere are highly developed in Germany and should be brought to the attention of Pakistani government and private sector organizations, including Pakistan Council for Renewable Energy and Technologies (PCRET) and Ministry of Environment.n By Prof. S.B. Hassan

Cultural Relations

" good governance In addition, Germany provides assistance for both Afghan refugees in Pakistan and internally displaced Pakistanis who were forced to leave their homes temporarily. The geographical focus of these efforts are in the province of Khyber Pakhtunkhwa and FATA, with individual measures also being implemented in Baluchistan, Punjab, Gilgit Baltistan and AJK (Azad Jammu and Kashmir). For 2009 and 2010, the Federal Ministry for Economic Cooperation and Development has pledged some EUR 149 million, including funding for emergency relief measures in the wake of the summer 2010 flood disaster. In 2009/10, the Federal Foreign Office also stepped up its project activities in Pakistan, including post-flood humanitarian aid, measures to improve the drinking water supply in Baluchistan and Gilgit Baltistan and projects in the judicial sector (legal advice services) and to strengthen the dialogue on federalism. Pakistan is also one of the first of Germany's partner countries to make use of innovative development funding instruments. On 30 November 2008, at the United Nations Conference on Financing for Development held in Doha, Qatar, the two countries - along with the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) - signed an agreement to convert the debts owed by Pakistan to Germany into a GFATM programme in Pakistan worth EUR 40 million.

www.iandm.com.pk

EVENTS

Conference on Quality, Health, Safety and Environment organized by 'Investment & Marketing'

Prof S.B. Hassan, President & CEO of 'Investment & Marketing' organized a conference to recognize three important days in the year 2011: Earth Hour observed on March 26; Earth Day on April 22; Health and Safety at Work Day on April 28th. The conference was held on April 19, 2011 at the Marriott Karachi Hotel. The conference on the topic of Quality, Health, Safety, Environment was organized by I&M Conferences in the context of recent industrial disasters that have been suffered in different parts of the world. These include the tragic Fukushima nuclear disaster in Japan, and the oil spill disaster in the Gulf of Mexico, which is expected to cost British Petroleum $40 billion. As a result of these industrial disasters, the topic of QHSE

policies and procedures in the public and private sector has gained great importance throughout the world. The objective of the conference was to raise QHSE standards in Pakistan. Conference participants stressed that to prevent disasters, and to protect employees and citizens, corporations in Pakistan need to discuss and establish strong QHSE programs. Conference participants included senior government officials, business executives, QHSE specialists, university scientists, environmental activists and environmental journalists. Economic experts from the Trade Office of the Russian Federation discussed the energy and energy efficiency policies developed by the Russian government. Mr. Dmitry Sevrugin, Senior Specialist, Trade Office of Russian Federation in Karachi, discussed the energy resources of Russia and the effort to conserve energy and to reduce energy waste. Many conference participants expressed a wish for further exchange and cooperation between Russia and Pakistan. Mr Syed Ali Reza, Chairman, National Bank of Pakistan and Mr. Hussain Lawai, President and CEO, Summit Bank Ltd, Mir Hussain Ali, Secretary, Ministry of Environment and Alternative Energy, Govt of Sindh, graced the conference as Honoured Guests. The Inaugural Panel at the conference comprised individual presentations made by the following participants: Mr. Ali A Rahim, Director, Baker Tilly Mehmood

www.iandm.com.pk

Vol: XXXXIV

EVENTS

Idrees Qamar & Company - Chartered Accountants; Mr. Kalim Siddiqui, President, Petroleum Marketing, Byco Petroleum; Mr. Haroon Qassim, Chairman, PPMA; Mr. Naveed Khawaja, COO, EMB Ltd. Mr. Ali Rahim, who is also President of Karachi Gymkhana Club, provided a summary of Pakistan's industrial and economic development over many decades. His speech on the topic of 'Impact of Quality Standards on National Economic Development' was thoughtful, frank and accurate. He stressed that the government should establish priorities, encourage industrialization, tax agricultural income, reduce banking spread in order to divert investment into industry. In addition to discussing government macroecomic policies, he also touched on fundamental steps to establish quality standards. The topic for Mr. Kalim Siddiqui, President Petroleum Marketing, BYCO Petroleum was 'Safety is Proactive'. Mr. Siddiqui discussed the case of the Greek registered oil tanker which ran aground at Keamari in July 2003. He also discussed the ARPEL Guideline on "Occupational Health and Safety Proactive Indicators" which was developed to provide the oil and gas industry with guidance in the use of proactive indicators to promote work environment that anticipates and responds to occupational hazards and prevents incidents. He noted that benefits are reduced injuries and losses, improved worker health and welfare, improved productivity, improved overall business operating systems, improved overall business image, protected company profits. Mr. Atif Hassan, HSE Manager for PSO and Ms. Ayesha Afzal, Corporate Planning Manager for PSO informed the participants on the safety standards at PSO, and the alternate energy initiatives of their organization. Mr. Naveed Khawaja Chief Operating Officer, EBM Ltd discussed the importance of Environmental Education for Citizens. He lamented the deterioration of the environment in Pakistan, and the importance of organized activism to combat further damage and loss to the environment. He discussed the CSR and QHSE programs of English Biscuit Manufacturers Ltd. Mr. Haroon Qassim, Chairman of PPMA informed the participants about the important role and objectives of PMMA, a critical organization for the economic development of Pakistan. He regretted that citizens' right to health is not a part of Pakistan's constitution. His thoughtful speech on the topic of 'Citizens'

Vol: XXXXIV

Health and National Economic Development' referred to the scholarship of Barro, Mushkin, Hamoudi and Sachs, and generated discussion throughout the conference proceedings. The Panel Discussions at the conference were on the following topics: Industry-Reducing Pollution and Enhancing Safety; Alternative Energy Initiatives in Pakistan; Protecting Karachi's environment and Citizens' Health. The distinguished panelists at the conference included Dr. Aatiqa S. Lateef. Group Head, Legal, Strategy & Marketing HBFCL, Dr. Arshad Ali Beg, Former DG PCSIR, Mr. Atif Hassan Siddiqui, HSE Manager, Pakistan State Oil, Mr. Zuzzer Ali Shamsuddin, PCSIR Head Office, Islamabad, Mr. Syed Ahsenuddin, Vice President, Engro Polymer & Chemicals Ltd, Mr. Masood Ahmed, Head, Sustainable Development Center, SZABIST, Ms. Ayesha Afzal, Corporate Planning Manager, Pakistan State Oil, Dr. Ali Bano Munshi, Head, Center for Environmental Studies, PCSIR Labs Complex, Karachi, Dr. Moazzam Ali Khan, Director, Institute for Environmental Studies, University of Karachi, Mr. Roland DeSouza, Executive Director, Shehri, Mr. Rizwan Ahmed Tariq, Award Winning Journalist. Mr. Martin Van Camp from Belgium attended the conference and expressed his interest and appreciation. Mr. Martin Van Camp has raised 13,000 Euros in Belgium to rebuild the village of Jatti in Pakistan after the flood disaster. In this project, he collaborated with Dr. Ruth Pfau of the Marie Adelaide Leprosy Center. Mr. Roland DeSouza, Executive Director of SHEHRI, provided information on the over-consumption of natural resources by the mankind. His presentation showed that the population of Earth had skyrocket from 150 million in 1 AD to 6.9 billion in 2010 AD, creating great demands for natural resources, and war over their distribution and consumption. He pointed to the relationship between environmentalism and peace. Prof Hassan, President and CEO of' Investment & Marketing' thanked the Sponsors for supporting the event and all the participants for contributing to the high intellectual quality of the proceedings. The participants appreciated the initiative of 'Investment & Marketing' to organize the conference. The academics and scientists from PCSIR, SZABIST, SUPARCO, University of Karachi thanked Prof Hassan for providing a unique opportunity to interaction, cooperation and further collaboration.n

www.iandm.com.pk

EVENTS

(L to R) Mr. Salman Hassan, VP & COO, I&M; Ms. Ayesha Afzal, Corporate Planning Manager, PSO; Mr. Ali Rahim, Director, Baker Tilly Chartered Accountants; Mr. Kalim Siddiqui, President Petroleum Marketing, Byco Petroleum; Mr. Naveed A. Khawaja, COO, EBM; Prof. S.B. Hassan, President & Chief Editor, I&M; Mr. Atif Siddiqui, HSE Manager, PSO; Dr. Aatiqa S. Lateef, Group Head, HBFC; Mr. Arshad Ali Baig, Former DG, PCSIR; Mr. Zuzzer Ali Shamsuddin, PCSIR and Syed Azfar Hussain, Asst. Editor, I&M.

(L to R) Mr. Salman Hassan, VP & COO, I&M; Mr. Dmitry Sevrugin, Sr. Specialist, Russian Trade; Mr. Rizwan Ahmed Tariq, Jang Group; Syed Azfar Hussain, Asst. Editor, I&M; Ms. Aliya Bano Munshi, PCSIR; Mr. Zuzzer Ali Shamsuddin, PCSIR; Mir Hussain Ali, Secretary Environment, Govt. of Sindh; Prof. S.B. Hassan, President & Chief Editor, I&M; Mr. Naveed A. Khawaja, COO, EBM; Dr. Moazzam Ali Khan, Karachi University; Mr. Masood Ahmed, SZABIST; Mr. Roland Desouza, Shehri; Mr. Ahsenuddin, VP, Engro Polymer and Ms. Ayesha Afzal, Corporate Planning Manager, PSO 06

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

The German government Christian Wulff

Angela Merkel

Christian Wulff was born in Osnabrück, Lower Saxony, on 19 June 1959 as the second child of Rudolf and Dagmar Wulff. He gained his Abitur, the higher education entrance qualification, at Ernst Moritz Arndt Grammar School. At an early age, he became active as a pupil and later student representative, as well as in the Schüler Union and the Junge Union (youth organizations affiliated to the CDU). From 1980 to 1986 Christian Wulff studied law, specializing in economics, at the University of Osnabrück from 1980 to 1986. In 1987 he passed his first state examination in law in Hanover, subsequently did his practical legal training at Oldenburg Higher Regional Court and passed the second state examination in law in Hanover in 1990. That same year, he joined a law firm. In 1986 Christian Wulff became a CDU member of Osnabrück council, and from 1989 to 1994 he was leader of the CDU group. He remained a member of the council until 2001. In 1994 he was elected to the Lower Saxony's Landtag. In March of that year, he became the leader of the CDU parliamentary group in the Landtag, and in June he was elected chairman of his party in Lower Saxony. In 1998 he was elected CDU Deputy Federal Chairman. In 1988 Christian Wulff married Christiane Vogt, with whom he has a daughter. Annalena was born in 1993. In 2006, after 18 years together, the couple agreed to separate. In 2008 Christian Wulff married Bettina Körner. Together they have a son, Linus Florian, who was born in 2008. Bettina Wulff brought a son, Leander, born in 2003, into the marriage. After the Landtag elections in 2003, Christian Wulff was voted Minister-President by the members of Lower Saxony's Landtag on 4 March, and he was confirmed in this position on 26 February 2008. He held the office of Minister-President until 30 June 2010, the day of the 14th Federal Convention, which elected him tenth President of the Federal Republic of Germany. At his own request, his CDU membership has been suspended since that day. Christian Wulff has been the patron of the German Multiple Sclerosis Society, National Organization, since 2001. Christian Wulff is Catholic. His has an honorary doctorate from Tongji University in Shanghai, is senator of the Max Planck Society and honorary senator of the European Academy of Sciences and Arts in Salzburg.

Angela Merkel was sworn in as Chancellor on November 22, 2005. She is the first woman and the first East German to hold this office. Her CV traces her rise from an academic to a political career. Angela Merkel born on 17 July 1954 in Hamburg; Protestant, married Since November 2005 Chancellor of the Federal Republic of Germany 2002 - 2005 Chairwoman of the CDU/CSU parliamentary group in the German Bundestag Since 2000 Chairwoman of the Christian Democratic Union Germany (CDU) 1998 - 2000 General Secretary of the CDU Germany 1994 - 1998 Federal Minister for the Environment, Nature Conservation and Nuclear Safety 1991 - 1994 Federal Minister for Women and Youth 1993 - 2000 Chairwoman of the CDU Mecklenburg-Western Pomerania 1991 - 1998 Deputy Chairwoman of the CDU Since 1990 Member of the German Bundestag 1990 Deputy Government Spokeswoman of the de Maizière Government Since 1990 Joined the Christian Democratic Union of Germany (CDU) 1989 Member of "Demokratischer Aufbruch" (Democratic Awakening) 1986 Awarded a doctorate 1978 - 1990 Member of the academic staff at the Central Institute of Physical Chemistry at the Academy of Sciences 1973 - 1978 Studied Physics at Leipzig University 1973 Abitur (higher education entrance qualification) in Templin

Federal President

Chancellor

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Dr Guido Westerwelle Federal Minister for Foreign Affairs

Since 28 October 2009 Guido Westerwelle has been Federal Foreign Minister and Deputy Chancellor. Background and professional career Born on 27 December 1961 in Bad Honnef near Bonn. Abitur (higher education entrance qualification) in 1980, studied law in Bonn. First and second state law examinations and doctoral degree in law. Since 1991 in legal practice in Bonn. Honorary doctorate from Hanyang University, Seoul, South Korea. Joined the Free Democratic Party (FDP) in 1980. Chair of the Young Liberals 1983 to 1988. FDP chair for Bonn district 1993 to 2000. FDP General Secretary 1994 to 2001. Member of the German Bundestag since February 1996. FDP national chair since May 2001. Member of the German Bundestag since 8 February 1996, from May 2006 until October 2009 chair of the FDP parliamentary group.

Hans-Peter Friedrich (CSU) Federal Minister of the Interior

Born on 10 march 1957 in Naila; married, three children Since March 2011 F e d e r a l Minister of the Interior Since 2009 Chairman of the CSU federal state group in the German Bundestag 2005 - 2009 Deputy Chairman of the CDU/CSU parliamentary group in the German Bundestag; member of the Commission to Modernise Financial Relations between Federal and State Governments (Federalism Commission) 2002 - 2005 Deputy Chairman of the Investigative Committee on Donations to Political Parties; legal advisor of the CDU/CSU parliamentary group in the German Bundestag; member of the Commission on the Reorganisation of the Federal State Order (Federalism Commission I) Since 1999 Deputy Chairman of the CSU in Upper Franconia Since 1998 Chairman of the federal constituency assembly in Hof/Wunsiedel Since 1998 Member of the German Bundestag 1993 - 1998 Private secretary to the Chairman of the CSU federal state group 1991 - 1993 Staff member of the CDU/CSU parliamentary group in the German Bundestag

1988 - 1990 Federal Ministry of Economics (Industry Directorate General) 1988 Doctorate in law conferred (Dr. jur.) 1986 - 1988 Studied economics at the Fernuniversität Hagen (distance teaching university) 1984 - 1986 Studied economics in Augsburg 1979 - 1983 Studied law in Munich and Augsburg 1978 - 1979 Military service 1978 Obtained Abitur (German equivalent to A-levels) in Naila, Bavaria

Sabine LeutheusserSchnarrenberger Federal Minister of Justice

Born on July 26th 1951 in Minden/Westfalen, widowed Professional Career: l 1970 German university entrance qualification ("Abitur") l 1970-1975 Legal studies at the Universities of Göttingen and Bielefeld l 1975 First State Exam in Hamm, 1978 Second State Exam in Düsseldorf l 1979-1990 German Patent and Trade Mark Office (DPMA) l Since December 2nd, 1990 Member of the German Federal Parliament (Deutscher Bundestag) l May 18th 1992 Inauguration as Federal Minister of Justice l November 17th 1994 Re-inauguration as Federal Minister of Justice l January 17th, 1996 Resignation as Federal Minister of Justice after a ballot among the members of the FDP (Free Democratic Party) on the law on electronic eavesdropping for the purpose of criminal prosecution l Since July 1996 Attorney-at-law in Munich l Since Oktober 28th, 2009 Federal Minister of Justice

Free Democratic Party (FDP):

l Since 1978 Member of the FDP l 1982 - 2001 Chairwoman of the FDP district chapter in Starnberg (Bavaria) l Since 1987 Member of the FDP Federal Expert Committee for home policy and legal policy l January 1996 - March 2001 Chairwoman of the FDP Bavarian Expert Committee for home policy and legal policy l Since 1991 Member of the FDP Federal Executive Committee ("Bundesvorstand") l Since May 1997 Member of the Supervisory Board of the FDP ("Präsidium") l Since December 2nd, 2000 FDP Chairwoman for the Federal State of Bavaria l Deputy Chairwoman of the FDP parliamentary group l Federal German Parliament Spokeswoman on legal policy for the FDP parliamentary group l Chairwoman of the FDP at the parliamentary committee on

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT legal affairs l Deputy Member at the parliamentary committee for human rights and humanitarian assistance l Member of the German delegation at the parliamentary assembly of the Council of Europe

Hobbies:

l literature, skiing, swimming, organic gardening, animal welfare, dog "Franzi"

Honorary offices:

l Member of the Executive Committee ("Vorstand") of the Theodor Heuss Stiftung l Patron ("Schirmherrin") and member of Dunkelziffer e.V. Hilfe für sexuell missbrauchte Kinder l Member of the German Child Protection Agency (Deutscher Kinderschutzbund e.V.)

Wolfgang Schäuble (CDU) Federal Minister of Finance

Born on 18 September 1942 in Freiburg; married, four children Since October 2009 F e d e r a l Minister of Finance 2005 - 2009 Federal Minister of the Interior 2002 - 2005 Vice-Chairman of the CDU/CSU parliamentary group in the German Bundestag for foreign policy, security policy and European policy 1998 - 2000 Federal Chairman and since then member of the Presidium of the Christian Democratic Union Germany (CDU) 1991 - 2000 Chairman of the CDU/CSU parliamentary group in the German Bundestag 1984 - 1989 Federal Minister of Special Tasks and Head of the Federal Chancellery, then Federal Minister of the Interior 1981 - 1984 Parliamentary secretary of the CDU/CSU parliamentary group in the German Bundestag 1975 - 1984 Member of the Parliamentary Assembly of the Council of Europe Since 1972 Member of the German Bundestag 1979 - 1982 Chairman of the Working Group of European Border Regions 1976 - 1984 Chairman of CDU Special Committee for Sport 1978 - 1984 Barrister in the regional court of Offenburg 1969 - 1972 District Chairman of Junge Union Südbaden 1971 Conferred a doctorate in a subject of commercial law and joined the tax authorities of the federal state (Land) of Baden-Württemberg 1966 - 1970 1. State law examination, then assistant lecturer at

Freiburg University and representative of the ViceChancellor on political education, second state examination Since 1965 Member of the Christian Democratic Union of Germany (CDU) Since 1961 Joined the Junge Union, the CDU youth organisation 1961 Studied Law and Economics in Freiburg und Hamburg 1961 Abitur (German equivalent to A-Levels)

Rainer Brüderle

Federal Minister of Economics and Technology Personal Details

Born on 22 June 1945 in Berlin; married. University studies in journalism, law, economics and political science at the Johannes Gutenberg University of Mainz; university degree in economics (Diplomvolkswirt) in 1971.

Professional Career

Various teaching assignments in the field of economic policy 1975 Director, Office of Economic Affairs and Transport Development of the city of Main 1977 Director, Office of Economic Affairs and Real Estate 1981 Full-time city councillor and head of the Department of Economic Affairs of the city of Mainz Since 1973 Member of the Free Democratic Party (FDP) 1981-1983 FDP district chairman for Rheinhessen-Vorderpfalz (in Rhineland-Palatinate); deputy chair of the FDP district chapter in Mainz for 10 years Since 1983 FDP Chairman for the federal state of RhinelandPalatinate Since 1983 Member of the FDP Federal Executive Committee (Bundesvorstand) Since 1995 FDP Deputy Federal Chairman; Chairman of the FDP Liberal Forum on the Information Society 1987-1998 Member of the Rhineland-Palatinate state parliament 1987-1994 Minister of Economy and Transport for the federal state of Rhineland-Palatinate 1994-1998 Minister of Economy, Transport, Agriculture and Viticulture for the federal state of RhinelandPalatinate 1988-1998 Deputy Minister-President of the federal state of Rhineland-Palatinate Since 1998 Member of the German Bundestag 1998-2009 Deputy Chairman of the FDP Parliamentary Group Since 28 October 2009 Federal Minister of Economics and Technology

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Dirk Niebel

Ursula von der Leyen (CDU) Federal Minister for Labor and Social Affairs

Federal Minister for Economic Cooperation and Development Personal details

Born in Hamburg on 29 March 1963 Married to Andrea Niebel, selfemployed speech therapist Three sons: Jonas (born 1993), Leon (1995), FynGideon (2000) in Calw 1990-1993 Federal University of Applied Administrative Sciences in Mannheim; graduation with a degree in public administration (Diplom-Verwaltungswirt (FH)) 19931998 Placement officer at Heidelberg job centre

Ilse Aigner

Federal Minister of Food, Agriculture and Consumer Protection

Thomas de Maizière (CDU)

Federal Minister of Defence

Political and party activities

Member of the German Bundestag since 27 September 1998, representing the Constituency of Heidelberg (Federal State of Baden-Württemberg) Member of the national Executive Committee of the Free Democratic Party (FDP) Member of the Baden-Württemberg Executive Committee of FDP/DVP (German People's Party) Member of the Executive Committee of the Kurpfalz district association of the FDP Founding member of the Heidelberg Young Liberals group, subsequently chair of the county Young Liberals group and member of the Executive Committee of the Baden-Württemberg Young Liberals 2004-2005 Member of the Heidelberg City Council 2005-2009 FDP General Secretary Since 28 October 2009 Federal Minister for Economic Cooperation and Development 1998-2009 Spokesman on labour market policy of the FDP parliamentary group in the Bundestag 1 1998-2009 Member of the Committee on Labour and Social Affairs 2006-2009 Substitute Member of the Defence Committee 1998-2009 Deputy Chairman of the German-Israeli Parliamentary Friendship Group Since April 1999 Deputy Chairman of the Federal Association of Liberal Men in Germany 2000-2010 Vice President of the German-Israeli Association 2003-2009 Member of the Board of Trustees of the Friedrich Naumann Foundation for Freedom Since December 2005 Member of the Board of Trustees of the Israel Foundation in Germany Since May 2007 Member of the Board of Ghaemian-Foundation Heidelberg Since April 2009 Member of the Board of Trustees for the President Friedrich Ebert Memorial Since December 2009 Member of the Board of Trustees of the Christian Liebig Foundation

Kristina Schröder (CDU)

Federal Minister of Family Affairs, Senior Citizens, Women and Youth

Philipp Rösler (FDP) Federal Minister of Health

Peter Ramsauer (CSU)

Federal Minister of Transport, Building and Urban Affairs

Dr. Norbert Röttgen

Federal Minister for the Environment, Nature Conservation and Nuclear Safety

Prof. Dr. Annette Schavan

Federal Minister of Education & Research

Ronald Pofalla (CDU)

Head of the Federal Chancellery and Federal Minister for Special Tasks

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Pakistan-Germany relations - key representative Dr. Michael Koch

Consul General on August 08, 2008. n born on 13.08.1949, brought up in Wiesbaden and Offenbach n final secondary-school examinations (A-levels) in 1968 n completion of Military Services with the German Border Police (BGS) in Bad Hersfeld" n married, 2 children

The Ambassador

Ambassador Dr. Michael Koch presented his credentials to President Zardari on October 31, 2008. Kansas City (USA) as the son of a German diplomat on 30 September 1955 and attended schools in Amsterdam (Netherlands), Bonn, Ottawa (Canada) and in Rabat (Morocco). He is married and has three children.

Curriculum Vitae

Curriculum Vitae 1974

1973 School leaving examination (Baccalauréat) 1973 - 1978 Study of law at the Universities of Tübingen and Bonn 1978 First Juridical State Examination 1979 - 1981 Postgraduate Legal Traineeship in Bielefeld 1981 Second Juridical State Examination 1982 Internship in a law office in Toronto, Canada 1982 - 1986 Assistent at the Institute for International Law at the University of Kiel April 1986 Entrance into the Foreign Service 1987 - 1988 Desk Officer in the subdivision "European Community" in the Foreign Office, Bonn 1990 PhD (Dr. iur.) at the University of Bonn 1988 - 1991 Consulate General San Francisco (USA) 1991 - 1995 Personal Private Secretary of the Coordinator for German-American cooperation, Prof. Werner Weidenfeld, in the Foreign Office, Bonn 1995 - 1998 Deputy Head of Mission at the German Embassy Rangoon (Myanmar) 1998 - 2001 Head of a Task Force for Internal Reforms of the Foreign Service in the Central Department of the Foreign Office, first in Bonn, then in Berlin 2001 - 2004 Head of the Political Department at the German Embassy New Dehli (India) February 2004 Head of the Special Task Force "Afghanistan" in the Foreign Office, Berlin Since August 2008 Ambassador at the German Embassy Islamabad

Dr. Christian Brecht The Consul General

Dr. Christian Brecht was appointed

Law studies in Tübingen and Geneva, first state examination 1978 PhD and second state examination followed by professional experience as research assistant at the University of Geneva 1980 Attaché at the German Ministry of Foreign Affairs 1982 - 1985 Second Secretary in Peking (China) 1985 - 1988 Desk Officer in the Europe Division, German Ministry of Foreign Affairs 1988 - 1991 Deputy Head of Mission in Rangoon (Myanmar) 1991 - 1993 First Secretary in the Consular and Science Section in Santiago de Chile 1994 -1997 Deputy Head of Division "Restitution Law, Status of Forces Agreements" in the Legal Department at the German Ministry of Foreign Affairs Bonn 1997 - 2001 Deputy Consul General in Sydney (Australia) 2001 - 2005 Head of Consular and Legal Department and First Counsellor in the Political Section at the Embassy in Paris (France) 2005 - 2008 Head of Division "Help for German Nationals abroad" in the Legal Department at the German Ministry of Foreign Affairs Berlin Since 08 August 2008 Consul General of the Federal Republic of Germany in Karachi

Anees- ur- REHMAN

Honorary Consul, Federal Republic of Germany, Lahore Nationality: German Education: Electrical Engineering (B. Sc. Engg.), 1961.

Membership of Professional Institutions

Senior Member IEEE Member VDI Pakistan Engineering Council Registration: Elect/21239

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT Key Qualifications and Experience

Management Engineering Consultancy for Electric Power Systems Engineering Consultancy for Oil and Gas facilities

Country Experience

Germany, Nigeria, Pakistan, Hungary, Poland

Languages:

English, German, Urdu

Professional Experience:

1992-- ILF Consulting Engineers, Munich, Germany 1991 Consulting Engineer, Munich, Germany 1973 - 1990 Oskar von Miller GmbH, Consulting Engineers, Munich, Germany 1970 - 1973 Water and Power Development Authority (WAPDA) 1968 - 1969 AEG, Frankfurt, Germany 1966 - 1968 Hungary and Poland 1961 - 1966 Water and Power Development Authority (WAPDA)

H.E Mr. Shahid Kamal

Ministers. He served as Director responsible for India in the South Asia division of the Ministry of Foreign Affairs from 1988 to 1991. As Director Organization & Management he was engaged in overseeing organizational management of the Foreign Office from 1987 to 1988. At the United Nations in 1983 and from 1986 to 1987 he handled economic, administrative and budgetary matters. He represented Pakistan in the Economic and Budgetary Committees during the UN General Assembly sessions in 1983 and 1987. After joining the Foreign Service his first assignment was as Desk Officer for India from 1978 to 1979. He was subsequently appointed Second Secretary in the Embassy of Pakistan, Paris from 1980-1983. He was educated at the University of London, Institut d'Adminstation Publique, Paris and Government College, Lahore. Ambassador Kamal is Honorary Advisor to the Higher Education Commission of Pakistan as well as to the Global Change Impact Studies Centre in Islamabad. He is a member of the Advisory Group at the Centre for Advanced Studies in Telecommunications at COMSATS Institute of Information Technology. He is also Advisor to the Entrepreneurial Excellence Centre at Institute of Business Administration at Karachi. He is married with two daughters.

Ambassador of Pakistan to the Federal Republic of Germany

Mr. G.R. Malik

Ambassador Kamal is a career diplomat who has worked in the Ministry of Foreign Affairs, Prime Minister's Office, the United Nations, the Organization of Islamic Conference and diplomatic Missions in Paris, New York, Washington and Stockholm. Before coming to Berlin, Ambassador Kamal was Additional Foreign Secretary at the Ministry of Foreign Affairs. He served as Ambassador to Sweden from 2001 to 2005. During this period he was accredited as Ambassador to Finland, Estonia and Latvia. From1998 to 2000 he served as Minister/Deputy Chief of Mission at the Embassy of Pakistan, Washington D.C where he participated in negotiations on political and security issues. He was appointed Consul at the Consulate General of Pakistan, in New York from 1984-1986. At the Organization of Islamic Conference (OIC) in Jeddah, Saudi Arabia he headed the Political Department from 1995 to 1998. He served as Coordinator of OIC Assistance Mobilization Group for Bosnia and Herzegovina after the Dayton peace accord. He was involved in OIC's peace and reconciliation efforts in Afghanistan, Somalia and Tajikistan. At the Prime Minister's Office he worked as a senior aide on foreign affairs and for the social sector from 1991 to 1994. In this capacity, he served in the administration of three Prime

Joined Frankfurt on September 30, 2008. Prior to his present assignment, he was serving in the Ministry of Foreign Affairs as Director General. Before joining Foreign Service of Pakistan in 1988, he served as Information Officer in the Ministry of Information and Broadcasting from 1984 to 1988. He held various diplomatic assignments at Pakistan Missions abroad: Kuwait (1992-96), Pretoria (1999-2002) and Tripoli (2002-05). He also worked at Headquarters as Section Officer, Director and Director General. He has represented Pakistan in various meetings and seminars which include: WADA Meeting, Cape Town, South Africa, 2000, World Summit against Racism, Xenophobia and related issues at Durban, South Africa in September 2001, Earth Summit Johannesburg, South Africa - July 2002, AU Summit Sirte (Libya) - July 2005, Commonwealth Heads of Government Meeting (CHOGM), Malta - November 2005, Executive Seminar at NESA, National Defence University, Washington (USA), October - November 2007 and Regional Executive Seminar of NESA, National Defence University Washington at Athens in April 2008.

Consul General Consulate General of Pakistan in Frankfurt

www.iandm.com.pk

Vol: XXXXIV

EXCLUSIVE INTERVIEW

The German government's focus has always been on Education, Health and Agricultural sector The Foreign missions of Pakistan abroad should step forward to project and present a positive image of Pakistan

Mr. Dieter Freund Deputy Head of Mission, German Consulate in Karachi great relationship with the people of Pakistan .My wife had a great social circle in Karachi and made many friends. Interestingly, my daughter also served at the German Consulate in Karachi before my posting, so we all have very fond memories of Pakistan.

I&M: The difference between professionals of Pakistan and Germany?

DF: It is complicated because the conditions, the mindset, is different. But one thing is for sure, that there is huge potential of human resource in Pakistan. Pakistanis are extremely hardworking people. You see the real potential of Pakistanis, when you see them working outside Pakistan. Unfortunately, the potential of Pakistanis is not activated and utilized in Pakistan. For sustainable development in the country like Pakistan, the human resources should be properly utilized.

I&M: What are the major sectors where you see the presence of German organizations in Pakistan?

I&M: Thank you, Mr. Dieter Freund , for sparing some time from your busy schedule, to record an exclusive interview with the editorial team of 'Investment & Marketing' (I&M) International. I&M: Share with us your experiences in the last three and a half years in Pakistan?

DF: I had a very good time in Karachi .If one could describe it in one word it was "Perfect". Although it was towards the very end of my diplomatic career, but it was wonderful. There were some challenges but I had great cooperation with the Pakistani people in general and Karachites in particular. My whole family enjoyed our stay in Karachi .We developed

DF: The most active sector is the chemical and pharmaceutical sector. At the same time , we have the engineering giant in the form of Siemens in Pakistan. The company has a long history in the region and was the first major European company to start its operations in the region. Siemens has a tremendous portfolio here in Pakistan. There are many German organizations that are involved in the business of supplying new and used machinery for textile.

I&M: Major sectors where there are exports from Pakistan to Germany?

DF:Pakistani textile is extremely popular in Germany. The quality of the textile and related items is world class. Leather

www.iandm.com.pk

Vol: XXXXIV

EXCLUSIVE INTERVIEW garments manufactured in Pakistan and leather articles are also popular in Germany. Agricultural products especially mangoes are also exported to Germany and are in demand.

I&M: Your views about the business environment in Pakistan?

DF: These are difficult times all over the world and Pakistan. The major businessmen don't often visit Pakistan .The major companies are hesitant to send their employees to Pakistan because there are high risks involved .Just to give you the financial side of it the insurance coverage premium increases immensely for workers/employees in Pakistan. So working in Pakistan would be risky and at the same time will add cost to the company. They prefer to have their business operations in the Middle East for Pakistan.

I&M: What are the major areas and sectors where we see Germany government cooperation with Pakistan?

DF:The German government's focus has always been on Education, Health and Agricultural sector. Lately, we have witnessed that there is investment and cooperation from the German government in the energy sector.

I&M: Your views about the quality of education in Pakistan?

DF:Pakistan is slightly left behind in the education sector. A very small percentage of the federal Budget is spent on education. In my humble view education is vital for a country's development. A country has to invest in education for sustainable development .For a viable democracy there has be an educated electorate. So education should be the number one priority of the government.

Role of Goethe Institute

The Goethe-Institut is the Federal Republic of Germany's cultural institution operational worldwide. They are doing a great job in cooperation with the Germany Embassy and Consul .The Institution has played a central role in the cultural and educational policies of Germany for over 50 years. It promotes the study of German language abroad and encourages international cultural exchange and at the same time fosters knowledge about Germany by providing information on its culture, society and politics.

I&M: Your concerns about the Law and order situation in Pakistan?

DF:The correct perception of Pakistan should be made through media. The media should project positive things about

Pakistan as well. The majority of the foreign media does not project the true picture of Pakistan effectively. There should be a major effort to boost the positive image Pakistan. The Foreign missions of Pakistan abroad should step forward to project and present a positive image of Pakistan. The social, cultural, political and economic picture of Pakistan.

I&M: Your analysis on the global situation?

DF: I am deeply concerned with what is happening worldwide.Globally there is an effort to make world a better place. There were some initiatives like Millennium Development Goals for 2015 were taken under the supervision of the United Nations. I am not a supporter of the term first world, second world, third world. To me there is only one world .We share same air in which we breathe. We share this earth's resources from which we all gain food to survive. There are too many egocentrics walking around the world .Harmony would bring betterment to the world. There are few of the uncontrollable organizations and businessmen and have only one goal i.e to maximize their profit. There has to be more emphasis on morals and ethics. There has to be an increased role of Corporate Social Responsibility(CSR) from the organizations and at the same time the politicians should also come forward and resolve issues.

I&M: What is your message to the coming generations?

DF:I was born at the time of the end of World War 2. I grew up seeing city of Berlin in shambles. There were remnants of disaster and destruction around the city . In the late 40s and early 50s the industrial and manufacturing development started in Germany and with a clear strategy and goal from the country's leadership to build the country. I believe that groups of people can achieve great heights. The youth should be given trust and confidence with the right direction and right line of thinking to the people, surely you will see progress and development. I strongly believe development can be achieved by Pakistan as well

I&M: To conclude we wish you all the best for your future life .We acknowledge your efforts of improving the diplomatic and business ties between Pakistan and Germany

DF: Thank you for your kind words. I had a great time in Pakistan. I will definitely miss Pakistan and the people of Pakistan. I will carry good memories of my excellent relationship with Investment & Marketing.n

www.iandm.com.pk

Vol: XXXXIV

EXCLUSIVE INTERVIEW

Insurance is the only vehicle in the world that shares in the time of misery Today the key word of progress for any country is Regional Development

Mr. Saifuddin N. Zoomkawala Managing Director and Chief Executive EFU General Insurance Ltd President, Pakistan German Business Forum Profile: SAIFUDDIN NOORUDDIN ZOOMKAWALA Title Held: Chairman, Managing Director & Chief Executive Citizenship & Birth: Pakistani, March 31, 1942 1964 1975 After completion of Business Administration from IBA he joined EFU in 1964 and worked in various capacities of non life insurance company. 1975 1989 In 1975 EFU Group decided to establish a joint venture insurance company in United Arab Emirates. He was posted General Manager of Credit & Commerce Insurance Limited, Dubai, which he helped in establishing and making it one of the largest composite insurance companies of Dubai. The Group decided to sell off its stake to the locals as per the new insurance law of Dubai. 1989 to-date - Managing Director and Chief Executive of EFU General Insurance Limited He came back to Pakistan and took over as Managing Director and Chief Executive of EFU General Insurance Limited in 1989. Since then he continues to be the Chief Executive of the company. The premium of this company has gone up from Pak Rs. 282 million in 1989 to Pak Rs. 10 billion in 2010. Chairman EFU Life Assurance Limited EFU General as a parent company established EFU Life Assurance Limited in 1992 when the Government of Pakistan allowed the private sector to establish life assurance companies. After the sad demise of Mr. Roshen Ali Bhimjee in 1998 Mr. Saifuddin N. Zoomkawala was elected Chairman of the Company and continues to hold the office till today. Currently EFU Life is recognized as market leader in the private sector. In the year 2009 EFU Life s gross premium income was over Rs. 7.25 billion. The Company has set up 115 branches throughout the country and employs over 3000 persons in its 15

I&M: Thank you, Mr. Saifuddin Zoomkawala, for sparing time for an interview with Investment & Marketing . Will you share with us your entry into this industry?

Mr. Saifuddin N. Zoomkawala: I always believe that life is an accident. I have seen people aspire to be in some professions and ended up in other professions. I decided to do business administration and joined my father s business .Some friends came to sell insurance policies to my father and approached me to join the insurance industry and that is how I joined the insurance business. I joined Life Insurance in the year 1964 and then was approached by senior people working in general insurance .In 1967 I was offered an assignment on the permanent basis in general insurance as a Trainee Officer.

Origins and Development of EFU:

www.iandm.com.pk

Vol: XXXXIV

EXCLUSIVE INTERVIEW sales force and about 300 persons at its main offices in Karachi and Lahore. Chairman Allianz EFU Health Insurance Limited In 2000 EFU group signed a joint venture agreement with Allianz Group of Germany to establish Health Insurance Company in Pakistan. This company is the only company in the country, which underwrites health insurance business for individuals and families. He was elected Chairman of this company on its establishment. The Company has grown considerably and doing good volume of business taking care of health problems of thousands in Pakistan, insuring over 250,000 lives with approximately 400 companies. Allianz of Germany is the largest investor of Europe owning Dresdner Bank and other major industrial groups and has invested 5 million dollars in Pakistan through this joint venture. Total EFU Group Insurance Premium was over Rs. 19 billion in 2010. EXTRA CURRICULAR ACTIVITIES / ACHIEVEMENTS · Director on the Board of Pakistan Reinsurance Company Ltd. · President/CEO Pakistan German Business Forum (2010 2013) · Member Executive Committee, SAARC Chamber of Commerce & Industry · Member Board of Investment, Government of Pakistan · Member Aga Khan Resource Committee · Member Board of Governors Shaukat Khanum Memorial Trust and Research Centre · Member Trustee Burhani Hospital, Karachi · Member Board of Cupola Cares Foundation · Member Board of Directors Fakhr e Imdad Foundation · Member Sub-Committee for Horti-Business Finance, formed by Ministry of Finance for coordination and implementation of all agri-business initiatives. · Member - Board of the Sindh Institute of Urology and Transplantation, Karachi · Chairman Pakistan Insurance Institute (2009-2010) · Chairman Insurance Association of Pakistan (2005) · Member Task Force, Government of Pakistan for Terrorism Insurance Risk Coverage for Pakistan market. · Member Special Task Force, Government of Pakistan for formulating the New Insurance Ordinance 2002, which is now implemented and enforced. · Member Task Force, for the formulation of Takaful Scheme and Rules for the conduct of Takaful Business in Pakistan. · Created the first and only health insurance company in Pakistan, bringing Allianz of Germany as joint venture partner with FDI of US$ 5 million and introducing Health Insurance for individuals and families for the first time in the country with great success. · Attended various seminars organized in Europe of Economic Forum in general and particularly for Insurance Sector developments.

In the early 30s of the 20th century, under the inspiration of Quaid-e-Azam Mohammad Ali Jinnah, there began to appear signs of economic renaissance of the Muslims of India. Shipping, Airline, Banking and Insurance companies made their debut. In 1932, Mr. Ghulam Mohammad, a far sighted man, established Eastern Federal Union Insurance Company (EFU) with financial assistance from the Aga Khan III and the Nawab of Bhopal. Mr. Abdur Rehman Siddiqui became the founder chairman. The company was originally registered at Kolkata and operated in India (undivided) and Burma. In 1947, on the birth of Pakistan, EFU found a new home in a new country. In Pakistan, EFU rapidly established itself as a progressive and innovative insurer. It gave the emerging insurance industry the leadership, the manpower and the drive needed to grow in a situation where at one time, three-fourths of insurance was held by foreign companies. By 1961, EFU had become the flag bearer of Pakistan's

insurance industry on the world stage, and the largest life company in Afro-Asian countries (excluding Japan) under the leadership of Mr. Roshen Ali Bhimjee. It remained so until 1972 when Life Assurance business in Pakistan was nationalized. Thereafter EFU operated solely as a General Insurance Company, and was subsequently renamed EFU General Insurance Limited. Now EFU General is the second largest non-life insurance company in the country and the mother company of other insurance organizations of EFU Group. In June 1990 the Government of Pakistan decided to allow Life Assurance business in private sector also. On 18 November 1992, EFU Life was granted a license to carry on life assurance business. It started operations immediately with Group Life products and in March 1994 launched its Individual Life products. EFU entered the field of life assurance with the focus on the changing needs of the population. The company is committed to provide its policyholders with solutions to the problems of

www.iandm.com.pk

Vol: XXXXIV

EXCLUSIVE INTERVIEW

PGBFÂ&#x2019;s special interest is to support the growth and development of the small and medium size companies.

today's complex and rapidly changing financial environment by introducing innovative, and modern products. In March 2000, Allianz Aktiengesellschaft (Allianz AG), a global leader in the insurance industry with an active presence in 70 markets across 5 continents and EFU Group signed a joint venture to form a new company for providing health insurance cover to the people of Pakistan. Allianz EFU Health Insurance Limited, approved by the Government of Pakistan, is the first specialized health insurance provider in the country and aims to play a pivotal role in developing the health insurance market in Pakistan. Traditionally the EFU name has become synonymous with progressiveness and prompt claim settlement and now the EFU being the largest insurance group provides a full range of general, life and health insurance services.

Role of Mr. Roshen Ali Bhimjee:-

Mr. Roshen Ali Bhimjee found life insurance as a missionary work and to Mr. Bhimjee one of the best moments of his life was to give a claim cheque to a widow. He strongly believed that Life insurance can definitely helped the survivors/dependents of the policy holder. He introduced group insurance for the first time.

Initiatives:

It is very difficult to plan in a country like Pakistan because you cannot predict or forecast what will happen in the future. It is very difficult to plan in say next 3 years or 5 years. Our companyÂ&#x2019;s Initiatives and growth will be in Insurance Sector. EFU initiated a separate health insurance in Pakistan. There is tremendous amount of scope and need for developing health insurance in Pakistan. Health Insurance companies should take

over health care sector in Pakistan. The government should restrict itself to paying premium and leave it to the insurance companies to manage Health care. The other Initiatives that need to be taken are in Micro Insurance which is very much required by the poor people in the country who needs protection much more than the rich. The amount involved are very small and insurance companies should have a separate division for micro insurance and should work in collaboration with SMEs and Microfinance banks. Pakistan being an agricultural country and farmers need protection against various hazards. Crop Insurance is very important for an agricultural country like Pakistan and needs to be further developed. There is also a huge scope of Livestock/Cattle Insurance. There is also scope to create a reinsurance company in Pakistan. There should be other companies in addition to PakRe. If private sector is shying away the government should take initiatives. Naturally reinsurance companies cannot survive on Pakistan alone. They should be able to work in multiple countries and hedge their losses. Capital Requirement and Expertise are the two key aspects of Reinsurance. In the beginning joint venture seems like an attractive venture for Pakistan. Today the key word of progress for any country is Regional Development. In reinsurance we should developed business with the South Asian countries like Sri Lanka, Bangladesh etc. In the South East Asian countries like Malaysia and in the Middle East and may be the central Asian countries. The region should be developed.

Human Resource

At EFU maximum weightage is given to human resources

www.iandm.com.pk

Vol: XXXXIV

EXCLUSIVE INTERVIEW

because every product produced is by humans. It starts from the time an individual is recruited. Insurance personnel need to keep abreast with what is happening all over the world so there needs to be special emphasis on training and development. The Human Resource needs to be trained and equipped on the technical as well as on the management side. EFU Training Institute trains new recruits and also retrains the existing workforce.

Synergizing with other companies

There is a lot of synergy seen between the companies since the last decade. Synergizing between banks and insurance companies. What has happened is that banks find it very lucrative to sell insurance to their clients and at the same time it is very beneficial for the insurance companies to collaborate with banks. The Personal line business i.e individuals life insurance, health insurance ,motor car insurance is target market for banc assurance . Insurance companies specially design products for banks to sell insurance. The government should regulate and also ensure that banks don t overcharge and make exorbitant money by fleecing their customers. Banks are not well versed with the insurance terminology: so the insurance companies simplify the products for the banks. Life Insurance is simple, General Insurance is a bit complex. There are great incentives for the bank employees; as well. Nowadays in the life insurance sector almost half of the insurance is done in partnerships with banks.

CSR

EFU takes a lot of Corporate Social Responsibility. It is mainly involved in two sectors that are Health and Education .

Partnering with the Chinese

China is Pakistan s closest and most reliable ally. China has assisted Pakistan in creating and setting up infrastructure projects like roads, bridges, irrigation and canal systems and Dams. All these infrastructure projects need to have insurance cover. We at EFU realize that we have to first understand Chinese business. We are lucky in finding two individuals in Mr.K.M. Anwer Pasha and Mr. M.U. Zaman. First assignment for them was to meet those companies who are involved in infrastructure business in Pakistan. Since then the EFU team has made great progress and have great working relationship with the Chinese companies. Chinese Construction companies doing business in Pakistan feel comfortable in taking the risk in Pakistan and get reinsurance cover for it in China. So our company has established links with the technical department of those reinsurance companies. Chinese Insurance companies have become giants like Bank of China Insurance, Ping An insurance, China Pacific, and government company like People s insurance company of China etc.

Additional Investment From Germany

In the future there are chances of foreign investment but it all depends on the law and order and economic conditions.

Role of PGBF

As president of PGBF it is my endeavor to increase business ties between Pakistan and Germany. At PGBF there is an exchange of business delegations between the two countries. Germans have always been helpful to Pakistan. The Board of directors of PGBF meet once a month to discuss strategies and plans to further develop business between the two countries. Pakistan German Business Forum s special interest is to support the growth and development of the small and medium size companies.

I&M: What are the key issues and problems that you are keen to bring to the attention of the policy makers in Pakistan?

SZ: Pakistan has tremendous potential for growth. Law and order is the major issue. It is a matter of time and eventually we will come out of it. Discipline in every field should also be maintained and endorsed by policy makers to ensure progress of Pakistan.

I&M: Any other issue you like to give your comments on?

SZ: Insurance is international. What makes it International? It is the risk sharing device known as Re-Insurance. When a loss occurs for example: the devastation caused by the Floods: the risk was shared by reinsurance companies all over the world. Insurance is the only vehicle in the world that shares in the time of misery. Insurance is the only industry where the whole world cooperates and share with each other.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Economic Policy of Germany Germany's economy is currently experiencing a powerful upswing. Economic policy-makers now face the challenge of strengthening the long-term potential for growth. This must include decisive and credible fiscal consolidation policies that also open up the financial leeway to provide tax relief to citizens and businesses. In addition, the Federal Government is initiating structural reforms that aim to strengthen the regulatory principles of the social market economy.

A robust, broad-based upswing

In 2010, German GDP expanded by 3.6 percent. By growing twice as fast as the European Union average, Germany's economy became the growth engine for Europe. The Federal Government has projected that GDP will grow by 2.3 percent in 2012. The powerful upswing was triggered by the recovery of the world economy in the aftermath of the global financial and economic crisis. Thanks to their high level of competitiveness, German companies were able to tie into their earlier export success and get back on track quickly as global trade revived. This initial economic stimulus from exports has now spread to the domestic economy, which is increasingly becoming the driving force behind Germany's economic expansion. In 2010, domestic demand accounted for two thirds of Germany's economic growth. In 2011, this proportion will rise to over three quarters. The Federal Government's broad range of stimulus measures also contributed to these positive developments. For example, various legislation - including the Growth Acceleration Act has been providing citizens and businesses with tax relief to the tune of approximately 24 billion euros per year since 2010.

The economic rebound is also delivering an upswing in employment. Employment has now reached its highest level since reunification. The Federal Government anticipates that unemployment will average below three million in 2011. By adopting highly flexible working time rules at company level, German firms were able to retain their core workforce and largely avoid redundancies during the crisis. In addition, in recent years employees and employers have adopted responsible wage agreements and taken forward-looking entrepreneurial decisions, and have thereby made a significant contribution toward improving the competitiveness of German companies.

Shifting from crisis management to strengthening the drivers of growth

Two key aims of the Federal Government's economic policy are to ensure that the upturn rests on a broad base and to strengthen domestic growth drivers.

Pro-growth federal budget consolidation

To strengthen growth drivers, it is also necessary to pursue a credible and resolute policy of fiscal consolidation. The Federal Government is adhering to the debt reduction path mapped out in Germany's new constitutional debt rules, which require new borrowing to be cut in half by 2014. In 2011, the total government deficit is expected to tally approximately 2.5% of GDP. As a result, Germany will be one of the few EU member states that succeeds in bringing its levels of new borrowing back within

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT the limits of the Maastricht criteria as early as 2011. Fiscal consolidation will also open up the financial leeway to provide tax relief to citizens and businesses. Therefore, the Federal Government intends to relieve tax burdens - particularly on low and middle-income earners - as quickly as possible, preferably in the current legislative term. Furthermore, in the more immediate future, a comprehensive package of measures to simplify the tax system will also serve to enhance the financial flexibility of individuals and businesses.

Toward a new culture of stability in Europe

Germany's continued growth depends not least on stable and reliable economic conditions and policies in Europe. The difficulties in the eurozone have highlighted the need to take action to improve the institutional structure of the European Monetary Union. The Federal Government is committed to strengthening the effectiveness of the Stability and Growth Pact in order to prevent undesirable fiscal developments at an early stage. Flawed economic policies that erode competitiveness often serve to trigger fiscal distortions. As a result, the existing system of economic policy surveillance must be improved. Moreover, it is essential to establish a permanent crisis mechanism that will equip the monetary union with the long-term ability to deal effectively with the extreme case of government liquidity and solvency crises.

A new regulatory framework for financial markets

Properly functioning financial markets are a key prerequisite for boosting long-term growth potential. Germany's economic policy aims to bolster the resilience of financial institutions and the financial system as a whole. In the wake of the global financial crisis, the Federal Government launched a number of financial market reform initiatives at the national, European and international levels. In the future, systemically important financial institutions

facing insolvency will receive support when they undertake independent recapitalisation and reorganisation measures. The necessary funding will be provided by a restructuring fund that is financed by contributions paid by banks on the basis of their individual systemic risk.

Providing new employment opportunities to better tap the potential of the workforce

Germany's labour market policy continues to be guided by the principle of "making work pay". That's why the Federal Government is working to optimise incentives for people to take up jobs that require social insurance contributions. A moderate increase in standard social benefit rates for recipients of longterm unemployment compensation, together with additional educational opportunities for children, will secure the fulfilment of subsistence needs while simultaneously upholding the principle that wage levels must exceed unemployment benefit levels. To enhance the potential for growth, it is crucial to better harness the potential of the existing workforce. This is particularly true in light of demographic changes. That's why the Federal Government intends to increase the labour force participation of women and older people in particular as well as low-skilled workers and individuals with an immigrant background. In order to meet the challenge of an impending shortage of skilled workers, it is also necessary to focus on attracting qualified foreign specialists to Germany. The Federal Government is assessing whether Germany's immigration laws need to be adapted toward this end. Furthermore, the Federal Government will improve the procedures for recognising vocational qualifications obtained abroad.

Safeguarding prosperity through research and innovation

Innovation is a decisive growth driver. Despite Federal Government measures to consolidate public finances, we have allocated an additional 12 billion euros for spending on education, research and innovation during the current legislative period. In addition, we are taking steps to improve the policy environment for innovation and applied research, particularly in small and medium-sized businesses.

Securing a clean, reliable and affordable energy supply

Germany's new Energy Concept maps out the Federal Government's energy policy strategy, which aims among other things to achieve an 80% cut in CO2 emissions by 2050. To this end, the life spans of Germany's 17 nuclear power plants will be extended by an average of 12 years. This will help to dampen electricity prices and greenhouse gas emissions until renewable energy sources become the mainstay of our energy supply.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

2011 Annual Economic Report

Economic policy during the upswing: strengthening the forces for growth Executive Summary

The German economy demonstrated an unexpected level of dynamism in 2010. Gross domestic product grew by 3.6 percent, the economy's strongest performance since reunification. This powerful upswing - which followed the acute economic slump that occurred during the fourth quarter of 2008 and the first quarter of 2009 - was attributable primarily to the rebound in the global economy. Thanks to their high level of competitiveness, German companies were able to get back on track quickly, ramping up their exports as the global economy revived. Since then, the initial economic stimulus from exports has now spread to

the domestic economy, which is increasingly becoming the driving force behind Germany's economic expansion. In this way, the recovery has become increasingly broad-based. In its annual projection for 2011, the Federal Government expects the upswing to continue, with gross domestic product forecast to grow this year at a real rate of 2.3 percent. This means that the German economy is growing at a substantially faster pace than the Eurozone average. Nevertheless, in general the level of dynamism is likely to diminish somewhat compared to last year due to the somewhat weaker stimuli coming from the global economy.

www.iandm.com.pk

[1] Up to 2009, preliminary figures from the Federal Statistical Office as of 12 January 2011; [2] Based on total number of persons employed; [3] Contribution to GDP growth rate. The economic rebound is also delivering an upswing in employment. During the crisis, Germany avoided major job losses despite the drastic decline in industrial output and overall economic activity. This was a pleasing exception compared to most other countries. In recent years, employees and employers have adopted responsible wage agreements and taken forward-looking entrepreneurial decisions, and have thereby made a significant contribution toward improving the competitiveness of German companies. Total employment even reached records levels in 2010 at 40.5 million persons; this is also the highest level since reunification. Almost all of the newly created jobs are positions requiring social insurance contributions, and most of them involve full-time employment. The Federal Government anticipates that the sustained economic expansion will further improve the situation on the labour market, albeit at a more moderate tempo. In 2011, the number of employed persons is projected to increase by 320,000 on average compared to 2010, to a total of 40.8 million persons. Real household disposable income rose at a faster pace in 2010 than at any time since 2001. The main factors contributing to this increase include positive developments on the labour market and moderate trends in price levels, together

Vol: XXXXIV

SPECIAL REPORT Phase out crisis-related stimulus measures, ensure growth-friendly consolidation

with Federal Government tax relief measures that took effect last year. These developments are boosting the recovery of the domestic economy. Consumer spending increased noticeably in 2010, contributing 0.3 percentage points to overall economic growth. The Federal Government expects real consumer spending to increase solidly by 1.6 percent in 2011. The upswing continues to face risks, which are connected primarily to developments in the global economy. Because of its openness and its strong international linkages, Germany's economy continues to be heavily influenced by global economic developments. It is to be expected that the pace of global economic growth will lose a bit of steam this year. While the underlying level of dynamism remains high in emerging economies, the post-crisis pick-up is now slowing around the world. Furthermore, many governments are now scaling back the expansive policies they adopted in response to the crisis. The public and private sectors in the United States and Japan are facing necessary fiscal consolidation processes. This need is even more pronounced in certain European countries. Economic policy now has to face the challenge of setting the right policy course that will strengthen the domestic forces for growth over the long term and thereby secure the prosperity of tomorrow. Following the crisisrelated government interventions of recent years, the balance between state and markets needs to be restored. To this end, government measures to overcome the crisis will be successively phased out as part of the Federal Government's concerted exit strategy: applications for credits and guarantees under the Business Fund Germany were accepted only until 31 December 2010. In addition, the special rules adopted for short-time employment schemes will expire in March 2012. Likewise, the Federal Government intends to roll back its crisis-related bank holdings and bank guarantees as soon as possible in accordance with the financial health of the respective institutions. 46

The Federal Government has started the necessary growthoriented consolidation of public finances. This will involve limiting government spending, reducing subsidies, enhancing incentives, and placing a continued priority on funding for education and research. The consolidation package adopted by the Federal Government reflects this shift in fiscal policy and emphasises smart ways to reduce government spending. The package aims to achieve structural consolidation that strengthens growth potential and enhances confidence in the stability of the euro. In this way, the Federal Government is adhering to the requirements stipulated by the new constitutional debt rule. This resolute consolidation strategy will also give the Federal Government fiscal leeway to provide tax relief that will further boost the dynamism of the domestic economy. The government already intends to simplify the structure of the tax system in the near future. Low and middle income earners in particular are to be provided with tax relief as quickly as possible - preferably during the current legislative period. This will be contingent upon the achievement of sufficient fiscal leeway while maintaining compliance with the debt rule.

A new policy framework for financial markets

Properly functioning financial markets are indispensable for boosting long-term growth potential. Now that financial markets have been stabilised, the key task is to rectify the weak spots that the crisis exposed in German and international financial systems. Before the crisis, financial markets contained destabilising incentive structures: liability risks were not commensurate with opportunities for profit. The aim of the Federal Government's reform agenda is to bolster the resilience

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT of financial institutions and the overall financial system.

Ensure stability and growth in Europe

Germany's continued growth depends not least on stable and reliable economic conditions and policies in Europe. The crisis in Greece exposed three areas in which action needs to be taken with regard to the institutional structure of the European Monetary Union. First, the existing system of economic policy surveillance must be improved. Flawed economic developments and declining competitiveness often trigger fiscal disruptions. Therefore, for preventive purposes, it is especially important to recognise these problems early and to have effective means for requiring corrective measures. Second, the Stability and Growth Pact must be strengthened in order to prevent undesirable fiscal developments in the future. Third, in the future, the monetary union must be equipped to deal effectively with government liquidity and solvency crises. To this end, a permanent crisis mechanism that also involves private creditors is needed after the current rescue fund expires in 2013.

Demographic change as an opportunity

The German economy's future growth potential will also be strongly influenced by demographic change. For this reason, the Federal Government's policies are geared toward increasing the labour force participation of women and older people in particular as well as low-skilled workers and individuals with an immigrant background. At the same time, it is important to further reduce structural unemployment in Germany and to get more people into employment. To this end, the Federal Government will optimise incentive structures in order to further improve the functioning of the labour market. The Federal Government is committed to the system of free collective bargaining. This system is an indispensable part of the policy framework that constitutes the social market economy. For this reason, the Federal Government is opposed to a uniform statutory minimum wage. Existing minimum wage rules will be evaluated by October 2011. The outcome of this evaluation will serve as a basis for deciding whether the current minimum wage rules will be retained or rescinded. To remain innovative and competitive, the German economy needs well-trained, highly skilled workers. For this reason, the

Federal Government is committed to improving the quality and breadth of education and training, and to enabling people at every stage of life to participate comprehensively in education and training programmes. In order to successfully counteract the impending shortage of skilled workers, Germany must first of all tap the full potential of its domestic workforce, while also taking steps to attract qualified foreign specialists to Germany. To this end, the Federal Government will assess whether Germany's immigration laws need to be adapted accordingly. Support from and cooperative efforts between government and social partners are crucial if Germany wants to successfully m a s t e r t h e challenge posed by the impending shortage o f skilled workers. In order to boost the dynamism of the economy, the Federal Government is taking further steps to foster the creation of new businesses and is improving the conditions for business succession. Furthermore, through measures such as the new Training Pact, we are helping small and medium-sized companies fill their demand for skilled workers. The Federal Government reaffirms its goal of keeping the rate of social insurance contributions that are cofinanced by employers and employees below 40 percent of wages. The system of social insurance contributions must remain employment-friendly. Through the new Statutory Health Insurance Financing Act (GKVFinanzierungsgesetz), the Federal Government has launched fundamental reforms to secure the long-term financial viability of the statutory health insurance system. On the expenditure side, the Act contains effective consolidation measures; and on the revenue side, it largely decouples non-wage labour costs from trends in health care expenditures, so that the latter do not give rise to increasing labour costs which would jeopardise growth and jobs.

Enhance performance incentives through competition and a reliable policy framework

To boost competition in all sectors, the Federal Government will revise the Act against Restraints on Competition (Gesetz gegen Wettbewerbsbeschr채nkungen, or GWB). This will further improve competitive conditions, particularly in the areas of merger control, monitoring to prevent abuses of market dominance, provisions on fines, and procedures governing violations of anti-trust rules. In addition, an unbundling instrument

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT to be applied as a last resort will be added to the GWB. As a key step toward the further enhancement of competition on electricity and gas markets, the Federal Government will submit a draft bill to establish a market transparency authority for wholesale trading of electricity and gas.

Ensure prosperity through research and innovation

By allocating an additional 12 billion euros for investment in education and research through the year 2013 - 6 billion for education and 6 billion for research and development - the Federal Government is clearly demonstrating its commitment to taking responsibility for the future. In addition, its High-tech Strategy provides key incentives to foster innovation. Future funding to promote key technologies will place a higher priority on finding solutions to urgent societal challenges (climate/energy, health/nutrition, mobility, safety/security and communication). An efficient transport infrastructure is essential prerequisite for boosting economic growth. For this reason, one of the Federal Government's top transport policy priorities is to maintain and enhance the quality of transport infrastructure - for railways, roads and waterways.

Achieve a secure, affordable and environment-friendly energy supply

In 2010, the Federal Government unveiled an Energy Concept that sets out guidelines for energy policy through the year 2050. The Energy Concept unites several crucial energy policy objectives - energy security, climate protection, economic growth and greater competitiveness - within a single strategy. It sets the long-term target of achieving an 80 percent reduction in greenhouse gas emissions by 2050, compared to 1990 levels. To this end, we intend to ramp up the production and use of renewable energy sources, making them the mainstay of our energy supply. The temporary extension of nuclear power plant lifetimes will help us achieve our climate protection targets as efficiently as possible. Achieving our energy and climate policy targets will require substantial additional investments. The development of new technologies, the further expansion of power grids, and the integration of these grids into a European electricity grid are all equally as necessary as a new international climate protection agreement.

Strengthen the principles of the social market economy at the international level

Within multilateral contexts, the Federal Government works to strengthen the principles of the social market economy at the international level. To this end, the Government strives to achieve a stable and reliable international regulatory framework that guarantees open markets and thereby enhances worldwide economic growth. Sustainable and broad-based growth forms the basis for prosperity and poverty reduction. The Federal Government is also committed to optimising the linkages between external economic relations and development cooperation in order to build a solid foundation for growth and prosperity in developing and emerging countries. Top priorities of Germany's external economic policy include increasing the openness of international markets for goods and services, reducing trade barriers, and improving the conditions for crossborder investment. Among other things, this includes strengthening international competition through the elimination of unfair trade practices and subsidies as well as improving the protection and enforcement of intellectual property rights. For this reason, the Federal Government remains committed to concluding an ambitious, comprehensive and balanced agreement in World Trade Organization (WTO) negotiations under the Doha Round as early as possible this year. This agreement should also reflect the interests of developing countries. In addition, WTO-compatible regional and bilateral free trade agreements between the EU and its trading partners constitute an important complement to multilateral agreements within the framework of the WTO. In general, the situation on international commodities markets is characterised by rising levels of demand. Together with nontransparent and frequently oligopolistic supply structures, this can lead to rising and highly volatile prices as well as supply shortages. In response to these developments, the Federal Government has adopted its new Raw Materials Strategy. This strategy lays out a coherent action plan that takes into account Germany's high level of import dependence.n Courtesy: German Department of Economic Cooperation and development German Department of Economics and Information Technology

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

External economic policy The importance of foreign trade and investment for German industry

Global trade and international investment are among the most important prerequisites for growth, employment and prosperity in Germany. More than in any other economy of comparable size, German companies are strongly interlinked with the international division of labour. Foreign trade is the driving force behind Germany's economic relations abroad. Even in unfavourable global economic conditions, exports of goods and services have proven to be a crucial factor for job creation in Germany. Here are just a few facts that highlight the importance of external economic relations for Germany: n Germany is the world's leading exporting country. n Exports count for more than one third of Germany's GDP. n One out of every three Euros earned by the German economy is earned abroad. n Every fifth job in Germany depends on German products and services selling well on global markets. A wide range of imported goods and services expands the choices enjoyed by private households and increases the competitive edge of companies that need to buy inexpensive primary products.

New challenges facing Germany's external economic policy

The level of integration of German industry within international markets is constantly increasing. The main factors influencing this development are the ongoing process of integration within the European Union, the increasing globalisation of world markets, the opening of new markets and the increasing use of the Euro as a currency unit of international trade. 44

Globalisation offers enormous opportunities for German industry. However, at the same time it is also a great challenge, as shown by changes in the international division of labour as well as dramatic shifts in various countries' shares of world trade (as can be seen by the rising importance of such countries as China, India and Brazil on the world market). Increased competition on international markets and the rapid technological developments present German industry with the challenge of maintaining and increasing its leading position in important sectors. German creativity, dynamism and efficiency have helped make Germany an economic leader among industrialised nations. The challenge is to maintain this position. To create and maintain jobs in Germany, German companies must consolidate their international competitive edge. At the same time, Germany must continue to assert itself as an attractive location for foreign investment.

Objectives of external economic policy

One of the essential aims of German external economic policy is to actively support the creation of global conditions that foster free trade and competition. Germany places a strong priority on the successful completion of the Doha round

www.iandm.com.pk

of world trade talks as a crucial means for enhancing growth and employment in Germany. Germany's external economic policy also seeks to strengthen the competitive position of German companies - especially small and medium-sized enterprises - on world markets. While companies naturally are expected first and foremost to develop business opportunities on their own initiative, the German government supports German firms' efforts to open up and secure foreign markets for their goods and services. The federal government uses a wide range of foreign trade promotion instruments to reduce risks and to provide companies with a broader scope for make decisions regarding foreign investment, international cooperation and cross-border fusions. The scale of change and the new challenges posed by the global economy make it essential for Germany to have a forward-looking external economic policy. The Federal Government has taken on this challenge through its "Active Worldwide" foreign trade campaign, which was approved by the Federal Cabinet in 2003.

The importance of foreign trade and investment for German foreign policy

German industry's efficiency and competitiveness also play a significant role in Germany's foreign relations. Trade and economic links create confidence and thus help to stabilise international relations. This also means that Germany's external trade in strategic goods particularly arms, defence products and dual-use goods - must be oriented toward security requirements and comply with legal and international obligations. The limiting and control of this trade contributes to conflict prevention, peace-building, the maintenance of human rights and sustainable global development.n

Vol: XXXXIV

SPECIAL REPORT

Small business policy

Priorities of German SME policy Small and medium-sized businesses are at the heart of the social market economy and the major driving force behind growth and employment in Germany. They take responsibility, create stable jobs and strengthen the competitiveness of the German economy with their creativity and their innovations. The SME sector provides approximately 70% of all jobs and 80% of all training positions in Germany. Thus it is particularly important to boost investment activity in this sector. Together with tax measures, the German Government supports the growth potential of SMEs through policies that specifically target smaller firms. Reducing the bureaucratic burden of SMEs is an important measure to give creative enterprises with innovative ideas greater leeway to turn those ideas into reality. In addition to reducing bureaucratic red tape, access to loan financing for SMEs must be improved in order to create internationally attractive conditions for venture capital investment. The German Government is implementing measures to this effect within the framework of its SME initiative. Moreover, SMEs profit to a large extent from the measures taken against the worldwide economic and finacial crisis. Small and medium-sized businesses in particular will benefit from the increased tax deductibility of labour costs for maintenance and modernisation measures in private households. They will also benefit substantially from the fact that the turnover threshold for the actual payment of turnover tax was raised substantially from Â&#x20AC;125,000 to Â&#x20AC;500,000 until the end of 2011.

What counts as an SME?

In quantitative terms, businesses with an annual turnover of less than 50 million euros and with fewer than 500 employees are categorised as SMEs in Germany. Qualitative criteria include the unity of ownership and management as well as the management's accountable involvement in all business decisions.

approximately 4.5 million small and medium-sized businesses and self-employed professionals active in the skilled crafts, industry, trade, tourism, services and professional services. Thus SME policy affects the interests of the majority of those participating in the economy. Small and medium-sized businesses in Germany: n represent 99.7 % of all businesses, n produce 38 % of taxable turnover, n provide 70.6 % of jobs and n train 83 % of all apprentices.

Nine-point programme for small and medium-sized businesses

Through its adoption of a nine-point programme for small and medium-sized businesses in January 2010, the Federal Ministry of Economics and Technology has launched a series of measures that aim to further stabilise the financial situation and general policy framework for small businesses and to strengthen the foundation for a sustainable upswing.

The programme's nine priorities are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9.

Expanding financing opportunities for SMEs Appointing and installing a credit mediator Mobilising new venture capital for high-tech start-ups Strengthening a culture of entrepreneurship and easing the conditions for business succession Boosting the innovative capacity of SMEs Securing a sufficient supply of skilled labour Tapping foreign markets Providing tax relief to SMEs Improving government dialogue with SMEs

Small businesses Medium-sized businesses less than 1 million euros 1 to 50 million euros turnover turnover annually annually up to 9 employees 10 to 499 employees Source: IFM Bonn [Institute for SME Research]

Small and medium-sized enterprises: the backbone of the German economy

One of the main hallmarks of Germany's economy is the

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Industrial policy The term "industrial policy" is used and understood in a wide variety of ways. There is still a widespread view that industrial policy essentially involves (a) targeted government interventions to protect domestic companies against foreign competition and/or (b) government subsidies to nurture domestic industries of the future. The German government, however, opposes protectionism in general and takes the position that markets of the future cannot be determined by policymakers. Instead, we believe that market participants acting within the process of fair competition are much better at finding out which markets and technologies possess key potential for future growth. For this reason, the German government's industrial policy places its top priority on improving the general policy conditions for doing business. The guiding vision here is that of the Social Market Economy, which was conceived by Ludwig Erhard in the early days of the Federal Republic of Germany. According to this model, the state should largely limit its industrial policy to the establishment of a general policy environment that is conducive to dynamic economic development. A central priority is to ensure that domestic companies and their employees enjoy a level playing field - i.e. conditions of fair competition - on international markets. Direct government interventions must be restricted to rare exceptional cases. The responsibility for attaining and enhancing competitiveness lies first and foremost with companies themselves. For industrial policy to be effective, it is not necessary to develop strategic visions, to pursue prestige projects or - much less - to subsidise uncompetitive sectors. Rather, in order to foster growth and jobs, industrial policy must place a priority on establishing the right conditions for innovation and production in a broad spectrum of economic sectors. Key tasks range from the identification of attractive business sites by local communities to the negotiation of global trade and climate agreements that take the interests of domestic companies into due account. Thus modern industrial policy is a multi-level, interdisciplinary task that, in a strict sense, has very few instruments of its own at its disposal. Rather, its task is to ensure that the justified interests and concerns of industrial companies and their employees flow into the general political decision-making process and that these interests are taken into appropriate consideration so that domestic industries and industrial sites can engage in fair competition on world markets. At the same time, there can be special situations in which government support is in order. For example, within Germany's federal government, the Federal Ministry of Economics and Technology is responsible for coordination procedures between policymakers and industry in the strategically significant maritime and aerospace industries.

This coordination task is performed at the level of State Secretary. Because of its horizontal orientation, industrial policy must feed into nearly every realm of policymaking in order to prevent excessive or unjustified barriers to economic activity that exist in other countries, especially countries outside the EU. Policy areas that have crucial relevance for industrial policy include research and innovation; education, training and skills development; taxes, social insurance contributions and

bureaucracy; energy and raw materials; the environment; foreign trade and investment; and infrastructure. Developments in Germany in recent years have shown that it is possible to make the shift to environmentally compatible economic activity without sacrificing prosperity. When it comes to environmental protection, markets require clear targets from policymakers - but these targets can be developed only in cooperation with industry. The state must provide companies with reliable and quantifiable policy conditions not just in industrial policy, but in environmental and climate policy as well. Furthermore, the state should remain technology-neutral - in other words, it should refrain completely from imposing requirements regarding the development and use of specific technologies. The decisive factor for solving environmental problems is the cultivation and application of innovative ideas. And it is precisely in research- and knowledge-intensive sectors such as mechanical engineering and measurement and control technology that German companies are pioneers in the production and export of environmental and climate technologies. As part of its policy to foster sustainable economic activity, the German government backs German industry's efforts in these areas by providing support for resource-efficient and environmentfriendly products and processes and by offering extensive guidance to boost the sales of environmental technology on international markets.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Service industry The service sector - which encompasses a vast spectrum of business activity including trade, hotels and restaurants, transport, communication, credit and insurance, corporate services and more - is a major driver of economic growth in Germany. Today the service industry accounts for nearly 70% of GDP and the labour market, with employment expanding most rapidly in the financial, rental and corporate services sectors.

The OECD has divided the service industry into the following areas: " " " "

Distribution services (commerce, transport, information) Business services (financial services, leasing) Personal services (hospitality, culture, sport, household) Social services (state, health, education, religion)

Structural change: the shift toward a service society

In the most developed economies, more than two thirds of economic activity is concentrated in the service sector. This necessitates a profound reorientation of policy; including the development of different professional curricula, the increased decentralisation of work processes and the promotion of innovative skills. Demographic changes play a key role in accelerating these trends.

Significance for the economy as a whole

Since it accounts for 70% of GDP and the labour market, the service sector is the driving force of economic growth and employment as well as business start-ups. Business and personal services are the sectors experiencing the most rapid growth, while distribution services are tending to stagnate and social (state) services are on the decline.

Internationalisation

The forces of globalisation and the liberalisation of the international trade in services under the General Agreement on Trade in Services (GATS) are geared above all toward business and infrastructure services. Modern information technology makes trade possible regardless of space and time. The German Government supports the efforts of technical service providers to cooperate with foreign partners, in order to help create greater opportunities for German companies on international markets.

Public-Private Partnerships (PPP)

Public-private partnerships and privatisation create new alternatives for meeting the demands of a changing and globalising economy. The increased use of PPPs can serve to spur greater investment in Germany. At the same time, companies can use the experience gained in German PPP projects as a stepping stone to success in international competition.

EU Internal Market

In order to help the European Union meet the Lisbon objective of making the EU the most competitive economic area in the world, the EU seeks to remove the remaining barriers to the exchange in services in order to tap the service sector's full potential for fostering growth and employment. The most important component of the internal market strategy for the service sector is the EU Services Directive, which was adopted in December 2006 and is to be implemented by the member states by the end of 2009.

Innovation and standardisation

Expanding service markets create a need for innovative service products. The German Government's support of innovation and research specifically targets the development of new services. The rapid expansion of the international trade in services is accompanied by increasing demands for the comparability and compatibility of services. This is leading to the creation of international standards, specifications and quality seals within the service industry.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Social market economy Since the mid-20th century, Germany's economic policy has been based on the concept of the social market economy (soziale Marktwirtschaft). The central idea of this concept is to maintain the mechanisms of the free market while simultaneously ensuring social equity. Market mechanisms function by balancing supply and demand. This balance determines market prices. In order for these processes to function effectively, it is important to guarantee competition and prevent the exercise of market power. In this way, market mechanisms expand consumption opportunities, motivate suppliers to make innovations and technological advances, and distribute income and profits in accordance with individual achievement. At the same time, these mechanisms can prevent the excessive accumulation of market power. It is the responsibility of the state to establish the framework for effective competition. At the same time, the state must foster the willingness and ability of individuals to take personal initiative and to act independently. It must not stifle these essential individual qualities by allocating too much responsibility to state institutions. State action requires taxes, which represent a burden to the economy and society; this burden falls primarily on labour and thereby limits the ability to dispose of income freely. As a complement to the principle of free markets, the concept of the social market economy includes a second principle: the principle of social equity. To the extent possible, the emphasis on social equity should not constrain market freedom. Nevertheless, it is important to avoid the downsides of free markets, including destructive competition, the excessive concentration of economic power, and socially inequitable impacts of market processes such as unemployment. For this reason, the state pursues social policy measures as a way of actively intervening in market processes. The aim is to achieve the greatest possible degree of social security while ensuring the highest possible level of prosperity.

Ludwig Erhard

The concept of the social market economy was developed by Ludwig Erhard, together with Alfred M端ller-Armack. Erhard,

who served from 1949-1963 as the first Economics Minister of the Federal Republic of Germany, was a proponent of Ordoliberalism - a school of economic liberalism that also accorded a key role to the state. The fundamental principle of Ordoliberalism is the protection of all market participants on both the supply and demand side. Erhard's colleague M端ller-Armack, who headed the Economics Ministry's Directorate-General for fundamental issues of economics policy starting in 1952 and then became State Secretary for European policy in 1958, was the first person to put the term "social market economy" in writing. He described the "social market economy" as a form of market economy that - in contrast to a laissez-faire market economy - is intentionally managed in accordance with social priorities.

Legal basis

The term "social market economy" was never specifically named in Germany's constitution as the country's economic system, because the constitution does not contain a separate section on the economy. Nevertheless, central elements in Germany's legal system - including its basic rights, the freedom of association and contractual freedom, and the freedom to choose a profession and place of employment - lay the foundations for the social market economy and exclude extremes such as a centrally planned economy or an unfettered market economy. In May 1990, the Treaty establishing a Monetary, Economic and Social Union between the Federal Republic of Germany and the former German Democratic Republic set forth in law that the social market economy constitutes Germany's common economic order.

A solid basis for the long term

A forward-looking economic policy must be grounded in transparent, consistent economic concepts and principles that encompass clear goals and measures. This policy must have the trust and support of both business and society. It must also ensure that economic activities may be planned with certainty, thereby helping to foster individual initiative. Ludwig Erhard himself understood: the more successful a country's economic policy is, the less need there is for social assistance. Yet our society must assume social responsibility for those who, on their own, are not sufficiently capable of partaking in our society's prosperity. In this way, we can also help to ensure broad-based acceptance of structural changes in the economy.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Policies for innovation and technology Germany is a country of innovation. The Federal Ministry of Economics and Technology pursues a clear strategy and offers targeted funding programmes to foster technological advances and structural reforms, which lay the essential groundwork for the development and application of new technologies and services. In economically challenging times in particular, targeted support for the research and development (R&D) of innovative technologies ensures that Germany will emerge stronger from the crisis.

Current situation

Germany can meet the challenges of globalisation and the transition to a knowledge society only if there is a high level of dynamism for innovation. Germany spends 2.6 % of GDP on research and development, which places us in the upper third of industrialised nations. In the current difficult economic situation, we especially need to intensify our efforts so that we can succeed on the global markets with new products and services. The new Federal Government is pointing the way forward here, providing an additional Â&#x20AC; 12 billion for education, research and innovation. And the companies are also maintaining their efforts to innovate. According to a survey by the Association of German Chambers of Industry and Commerce from summer 2009, most of our firms will be boosting their efforts to innovate this year so as to be well equipped for the forthcoming upswing. In view of its ability to innovate, Germany's economy has good prospects for further improving its position on the world's markets.

Objectives of the technology policy of the Economics Ministry

Our goal is to establish better conditions for innovation and technological progress, and thereby to promote the innovative capacity of our companies. n We want small and medium-sized enterprises (SMEs) to improve their innovative capacities and to work

closer together with research establishments. To this end, we have programmes like the ZIM (Central Innovation Programme for SMEs). Further to this, the introduction of vouchers for innovation advice is planned. n We want to see considerably more knowledge-based business start-ups in future. To this end, we have programmes like the High-tech Start-up Fund and EXIST. n We want key industrial technologies (energy, transport, aviation, shipbuilding, space research) and cross-sectoral technologies (information technologies, multimedia) to be strengthened so that we can attain a leading position worldwide in these technologies. To this end, we offer technology-specific programmes oriented to the markets of the future. We want to strengthen the linkages between industry and research so that regional hubs and sectoral clusters can enhance their competitiveness and thereby boost employment and value creation in Germany. We support this for example with regional economic assistance and programmes to promote networks. We want to create conditions that substantially improve the climate for investment and consumption, thereby significantly increasing demand for new products and services. For this reason, the policies of the Federal Economics Ministry aim at more innovation in public procurement, innovation-friendly standards, and lower taxes which enhance the financial scope for more innovation. The technology-policy measures of the Economics Ministry are anchored in the Federal Government's High-Tech Strategy, which brings together the research and innovation activities of all the ministries. During this period of government, the focus will be increasingly directed to the global challenges of protecting the climate and resources, health, mobility and safety/security.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Energy and climate Economic efficiency, security of supply and environmental compatibility: these are the central aims of German energy policy. In Germany, the Federal Ministry of Economy and Technology has the lead responsibility for the formulation and implementation of energy policy.

Efficiency objective

Market economy structures and effective competition are key building blocks for ensuring the economically viable - i.e. efficient - supply and use of energy. For example, the ongoing liberalisation of electricity and gas markets throughout Europe is essential for fostering competition and ensuring competitive prices in this sector, which was formerly dominated by monopolies. This not only benefits industrial and private consumers, it also strengthens Germany's international competitiveness as a place to do business.

Supply security objective

Security of supply means that, at any given time, there are sufficient sources of energy to meet demand. As a country poor in natural resources, Germany is particularly dependent on energy imports. Thus in order for Germany to maximize its energy security, it needs to ensure a diverse mix of energy sources and energy suppliers from around the world. This is particularly true in light of the Government's decision to phase out nuclear power. It is also crucial to increase energy savings and energy efficiency, because reducing energy demand through the more rational use of energy also makes a significant contribution to security of supply.

Environmental compatibility objective

Environmental compatibility means using natural resources as carefully and sensibly as possible. Effective climate protection is one of the greatest current global challenges in the field of

energy policy. The German Government has launched a broad spectrum of initiatives that aim to enhance energy savings, promote the more rational use of energy, and increase the share of renewable energies in overall energy supply. To ensure that effective climate protection policies do not have a negative impact on the competitiveness of our companies, it is important to press forward with emissions reductions not only at the national level but also at the European and international levels.

Energy and climate

Climate protection is the greatest challenge facing environmental policy. Climate researchers have identified numerous developments indicating that climate change is already underway. For example, of the ten hottest years on record since global temperatures started being compiled in the mid-19th century, seven of these have occurred during the past decade. In the view of many scientists, there is a high degree of probability that this development is attributable to human influence. For this reason, human-induced emissions of greenhouse gases particularly carbon dioxide generated from fuel combustion must be drastically reduced across the globe.

Greenhouse gas reduction targets

In the 1997 Kyoto Protocol to the United Nations Convention on Climate Change, the industrialised nations committed themselves to reducing their emissions of six greenhouse gases by at least 5% over 1990 levels within the commitment period 2008-2012. The member states of the European Union reached an agreement on how they will divide up their share of emissions reductions amongst themselves: under this agreement, Germany's emissions reductions target is 21%.

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT Reducing emissions: What has Germany accomplished so far?

Germany and abroad.

From 1994 through 2006, Germany cut its greenhouse gas emissions by nearly 19%. This was chiefly a result of modernisation processes in the new L채nder, but measures implemented as part of the German government's climate protection programmes played a key role as well. Germany expects to fulfil its 21% emissions reductions target within the 2008-2012 commitment period without needing to adopt any additional measures.

Integrated Energy and Climate Programme

On 5 December 2007, the German government unveiled its Integrated Energy and Climate Programme, which aims to set a global example in the fields of energy and climate policy and is suited to the needs and capabilities of a modern national economy. The launch was timed to coincide with the kick-off of the United Nations Climate Change Conference in Bali, which was held from 3-15 December 2007. The programme is based on the conviction that (a) energy must be used with much greater efficiency than is currently the case and (b) a much higher priority must be placed on the use of low-carbon energy. The adopted measures aim to prove that climate protection is both affordable and compatible with economic growth. For this reason, the German government is pursuing policies that deliver favourable results in keeping CO2 emissions low, but that are also as cost-effective as possible. Our aim is to achieve positive environmental outcomes without having a negative impact on consumers and the competitiveness of German business.

Renewable Energies Export Initiative

The "Renewable Energies Export Initiative" was launched by the German Bundestag in 2002 and is operated by the Federal Ministry of Economics and Technology. The main objective is to contribute to climate protection by stimulating the acceptance and use of renewable energy in other countries. By showcasing German's technical expertise in the field of renewable energy and by organising business trips to and from Germany, the Export Initiative facilitates business contacts between companies from

Get to know first-class German technologies

German companies in the renewable energy sector are producers and providers of world-class technology. Find out more about "renewables - Made in Germany". Simply click on the following link to find descriptions of German firms and products in the field of renewable energy as well as information on the Export Initiativ's activities abroad. This information is provided by the German Energy Agency dena. The virtual marketplace renewables B2B gives you the direct opportunity to make new business contacts and conduct business transactions. It also provides comprehensive information on the latest news from around the world in the renewable energy sector as well as details on international events such as trade fairs, conferences, training seminars, and the special Business Marketplace activities organised by Germany's bilateral chambers of industry and commerce. The virtual marketplace is operated by the German-Greek Chamber of Industry and Commerce: www.renewablesb2b.com

Energy Efficiency Export Initiative What is the Energy Efficiency Export Initiative?

In times of scarce fossil fuel resources and continually rising energy prices, economic prosperity and competitiveness depend more than ever on the ability to use energy more efficiently not just in Germany, but all around the world. The use of innovative technology holds enormous potential for energy conservation in every field of application. Companies, private households and the public sector can tap unimagined resources through the efficient use of energy. Germany enjoys an outstanding reputation throughout the world for its high-quality technical products and its practical expertise, particularly in the field of energy efficiency. This is why the German Ministry of Economics and Technology decided to launch the Energy Efficiency Export Initiative. This initiative will help you bring energy efficiency knowhow and experience to your country. In this way, you can tap the potential for local energy savings and energy efficiency. This has multiple benefits: you will save energy costs, enhance your own and your country's economic competitiveness, and make a positive contribution to international climate protection. The Energy Efficiency Export Initiative will help you establish contacts with German companies and experts. The initiative aims to: " show you solutions in the field of energy efficiency. " help you implement and expand energy efficiency measures as a way to boost competitiveness. " transfer know-how into the hands of political decisionmakers, key opinion leaders and market participants. " make a tangible contribution to international climate protection.n

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

Cordinating Tourism policy with Europe Coordinating and shaping European policy

Germany's Constitution states that the Federal Government is responsible for representing the country's interests in the area of European policy. The Federal Ministry of Economics and Technology has two key functions in this respect. First, the Economics Ministry ensures that the Federal Government speaks with one voice when dealing with the various EU institutions in Brussels. Second, it makes sure that the Bundestag and the Bundesrat receive timely and comprehensive information on EU projects and initiatives, so that they can make use of their right to influence EU policy, which is guaranteed to them by the German Constitution. Within the Federal Government, this mediation between Berlin and Brussels is the responsibility of two Ministries - the Economics Ministry and the Foreign Office - which divide up the government's EU policy tasks. Thus apart from its "own" economic policy issues - such as the EU Single Market, competition law, industrial policy, external economic policy and the Lisbon Strategy - the Economics Ministry also coordinates the Federal Government's positions on other classic or more technical working areas of the EU, such as the Common Agricultural Policy and environmental policy. The Foreign Office handles a number of policy areas that have gained increasing public attention in recent years, such as the Common Foreign and Security Policy and justice and home affairs policy. The Economics Ministry is also where the Federal Government's competence centre for European law is located, which provides advisory services to the Federal and Länder governments on questions of European law and ensures the uniform representation of Germany in the various European Courts.n

Tourism policy is an integral component of the German government's economic policy. The main principles, goals and instruments of Germany's tourism policy - both at the national level and in international forums can be outlined as follows: As in all economic sectors, the German government's central task in formulating and implementing its tourism policy is to boost entrepreneurial initiative and to enhance the competitiveness of tourism-related companies by continually fine-tuning the policy framework. This includes working together with the federal Länder and local governments to provide the necessary infrastructure for a successful tourism sector. In general, the Länder are responsible for the concrete planning, development and direct promotion of tourism. The main economic policy areas through which the Federal Government has a formative influence on the tourism industry include tax policy, labour market policy and above all federal government policy on small and medium-sized businesses. Government support measures that specifically benefit the tourism sector include federal funding for the German National Tourist Board and for projects to enhance the performance of the tourism industry. The funding allocated to the German National Tourist Board is intended primarily to market Germany internationally as a holiday and travel destination. This type of marketing is necessary because - given the intensity of international competition - small-scale market participants in Germany are unable to perform this task entirely on their own. Funding for this purpose has steadily increased in recent years and amounted to approximately 26.3 million euros for the 2009 financial year. Government funding to enhance the performance and competitiveness of the German tourism industry is used primarily to support advanced training programmes. This funding is also used to support projects that focus on market monitoring, quality enhancement for tourism products and services, and sales promotion. The primary aims here are to strengthen the performance of individual businesses and to foster environmentfriendly practices in the tourism sector. Another key goal is to provide targeted support for the marketing of innovative products and projects (such as tours for children and adolescents; environmentally compatible forms of travel; and accessible tourism). In these efforts, a particular priority is placed on meeting the needs of the new federal states in eastern Germany. Furthermore, the Federal Government's rural development policy also includes support for rural tourism. This support forms a key component of the government's agricultural policy, and as such falls within the remit of the Federal Ministry of Food, Agriculture and Consumer Protection. Within the framework of the "Joint Task to Improve Agricultural Structures and Coastal Protection" (i.e. operated jointly by the Federal and Länder governments), the Agriculture Ministry and the Länder carry out measures to help rural businesses invest in agrotourism and farm holidays, with the aim of diversifying rural income sources and strengthening rural economies.n

www.iandm.com.pk

Vol: XXXXIV

Development Cooperation with Pakistan

Hydro Power Pakistan (ÂŠ KfW Pakistan) Germany's development cooperation with Pakistan started in the early 1960s.It focuses on three sectors: health, education, energy. Cooperation has recently been extended to include the governance sector. Through its combined approach of technical and financial cooperation, Germany brings together support to sector reform, policy development and capacity building with investments in infrastructure, equipment and operational facilities. Pakistan is also one of the pilot beneficiary countries of a new debt-to-health financing instrument developed by Germany in cooperation with the Global Fund to Fight AIDS, Tuberculosis and Malaria. Geographically, Germany's assistance concentrates on the North West Frontier Province, the Federally Administered Tribal Areas and Azad Jammu and

Kashmir. Its long-term oriented development cooperation is complemented by short- and medium-term assistance for emergency and livelihood support, the rule of law and cross-border cooperation, and rehabilitation projects in Balochistan. In 2009, Germany has made a substantial contribution to address the humanitarian crisis of internally displaced persons in Khyber Pukhtoonkhwa (former North West Frontier Province) and the Federally Administered Tribal Areas. Key sectors of the humanitarian aid provided have been medical care, water, sanitation and hygiene and the provision of shelter, food and non-food items. Following its long-standing engagement for Afghan refugees in Pakistan, Germany also contributed to the setting-up of UNHCR's Refugee Affected and Hosting Areas Programme (RAHA) A particular feature of German development cooperation is the support to civil society provided through Germany's political foundations. These activities cover different subjects such as cultural affairs, scientific exchange or the promotion of gender equality. Germany's foundation work together with a variety of partners such as think tanks, journalists, youth, media, advocacy groups and parliamentarians.

extended to include the governance sector. Technical Cooperation (GIZ) - Pakistan Education Support Programme

Technical Cooperation (GIZ) - Health Programme

Technical Cooperation (GIZ) - Health Programme in Azaf Jammu & Kashmir

Focal Areas and Projects in Pakistan

Germany's development cooperation with Pakistan started in the early 1960s and is mainly funded by the Federal Ministry for Economic Cooperation and Development (BMZ). It focuses on: health, education, energy. Cooperation has recently been

www.iandm.com.pk

Vol: XXXXIV

Technical Cooperation (GIZ) - RE-EE Programme - Renewable Energy

Technical Cooperation (GIZ) Governance - Focus on Gender Equality in Pakistan

Development (BMZ) and implemented by German organistations such as GIZ or KfW, there are various individual projects implemented by Pakistani organisations which are funded directly by the Federal Foreign Office.

Cooperation with the Dr. Hanne Glodny School

Technical Cooperation (GIZ) - RE-EE Programme - Energy Efficiency

Technical Cooperation (GIZ) Governance - Strengthening official statistics in Pakistan

In April 2011 the Dr. Hanne Glodny School at the Afghan Refugee Camp near the Northern Bypass.received 2 million Pakistani Rupies by the German Consulate General Karachi. Technical Cooperation (GIZ) Governance - FATA Development Programme (FDP)

Financial Cooperation (KfW)

German political foundations

Technical Cooperation (GIZ) Governance - Disaster Preparedness and Management Project NWFP

Five political foundations are active in the field of development cooperation as well: " Friedrich-Ebert-Stiftung (FES) - in German " Friedrich-Naumann-Stiftung (FNF) " Heinrich-Bรถll-Stiftung (HBS) " Hanns-Seidel-Stiftung (HSS) " Konrad-Adenauer-Stiftung (KAS)

Communities for change: Laying the Grassroots Foundation for Political Reform in FATA Community Appraisal and M o t i v a t i o n Programme (CAMP), a Pakistani nongovernmental organization, initiated the 21- month project in May 2009, titled 'Communities for Change'.

Capacity Building for Improved Monitoring of Snow, Ice and Water Resources in the Indus Basin

Various projects funded by the Federal Foreign Office

Whereas most of the cooperation programmes are funded by the Federal Ministry for Economic Cooperation and

www.iandm.com.pk

Vol: XXXXIV

Water, Sanitation & Hygiene in Quetta

Gender Responsive Policing Project

Pakistan: Strengthening federal governance through informed dialogue

Women Leadership, Conflict Transformation and Peace building

Germany's Micro Project Scheme

Germany provided motorcycles and vehicles to rebuild police capacity after flood damage

Germany supports internally displaced persons in the Mohmand Agency

Communities for change: Laying the Grassroots Foundation for Political Reform in FATA

www.iandm.com.pk

Rural radio station in the village Thatta Ghulamka Dhiroka (ÂŠ Anjuman-e-Falahe-Aama (NGO)) GermanyÂ´s "Micro-Project-Scheme" has been set up in 1980 to support the underprivileged groups of society (e.g. committees, associations, welfare societies, schools, kindergartens and so on) to improve their social and economic situation through "self-help"-projects. The support consists of a financial donation that has generally a limit of about E U R O 2 5 . 0 0 0 . -- per pr oj ect

Vol: XXXXIV

Furniture for and renovation of AlNajaf School, Barakoh, Islamabad (© A. Dauth) Examples of project areas are - purchasing machinery, equipment, tools; - providing learning/teaching aids; - generating income, basic education and health; - improving the living conditions through fresh water, small power generating projects or ameliorating the infrastructure.

Goethe-Institute

Weltwärts - Germany's Development Volunteers Service German and international NGOs

German Know-how - ready for you !

You need experienced professionals to train your personnel here in Pakistan ? Or you seek training in Germany or elsewhere?

operating in Pakistan

Senior Experten Service (SES)

A considerable number of German and international NGOs are fullfilling crucial tasks in Pakistan. German NGOs are not obliged to register with the Embassy or the Consulate General.

The Centrum für internationale Migration und Entwicklung (CIM) GIZ (former InWEnt & DED) German Experts & Know-how

The Federal Institute for Geosciences and Natural Resources (BGR) Technical Cooperation with the Islamic Republic of Pakistan Pakistan - Georisks in Northern Pakistan I

The German Academic Exchange Service (DAAD) is the largest funding organisation in the world supporting the international exchange of students and scholars. Since it was founded in 1925, more than 1.5 million scholars in Germany and abroad have received DAAD funding. It is a registered association and its members are German institutions of higher education and student bodies. Its activities go far beyond simply awarding grants and scholarships. The DAAD supports the internationalisation of German universities, promotes German studies and the German language abroad, assists developing countries in establishing effective universities and advises decision makers on matters of cultural, education and development policy.

www.iandm.com.pk

The Goethe-Institut is the cultural institute of the Federal Republic of Germany with a global reach. We promote knowledge of the German language abroad and foster international cultural cooperation. We convey a comprehensive picture of Germany by providing information on Germany's cultural, social and political life. Through our network of GoetheInstitutes, Goethe Centres, cultural societies and reading rooms, alongside our examination and language learning centres, we perform the principal tasks of cultural and educational policy abroad. We work in partnership with public and private cultural bodies, the German federal states and municipalities, and the corporate sector. We draw on the rich variety of our many-faceted open society and Germany's lively culture. The Goethe-Institut Pakistan organizes and supports not only a broad spectrum of cultural events for the presentation of German art and culture, but also works with its partnership-based projects centres on intercultural exchange. Here the Goethe-Institut in Karachi closely cooperates with its Pakistani partners as it does with the AnnemarieSchimmel-Haus (the Goethe-Zentrum, in Lahore), and in a European framework with the Alliance Française and the British Council. The Information Centre of the GoetheInstitut Karachi provides information about current aspects of cultural, social and political life in Germany. The Library offers a broad spectrum of German literature. Up-to-date newspapers and magazines, German television and a selection of German films (with English subtitles) cater for the information needs of the visitors. The Information Centre assists with questions concerning studying in Germany. For a small fee only one can also use the Internet Café. n

Vol: XXXXIV

SPECIAL REPORT

Trade Fairs in Germany 2011 LIGNA, 30.05. - 03.06.2011, Hanover

LIGNA is the World Fair for the Forestry and Wood Industries. The 2011 event focuses on a number of areas including forestry, the furniture industry, sawmill technology and bioenergy production from wood. The biennial fair lasts five days and is open to both trade and non-trade visitors.

Transport logistic, 10. - 13.05.2011, Munich

Held every two years, transport logistic is the world's leading exhibition for logistics, mobility, IT and supply-chain management. An integrated event is Air Cargo Europe, an exhibition and conference for the global air cargo business, which is being held again this year for the fifth time. Last year, TRANSPORT LOGISTIC set a new record for attendance with more than 1,700 exhibitors from 55 countries and some 50,000 visitors. The exhibition is also open to non-trade visitors.

Intersolar, 08. - 10.06.2011, Munich

The Intersolar Europe in Munich is the world's largest exhibition for photovoltaics, solar thermal technology and solar building. The exhibition is accompanied by an extensive conference programme designed to enable solar industry manufacturers, suppliers, dealers, institutes and associations to forge closer ties. Non-trade visitors are also welcome.

CPD SIGNATURES, 24.-26.07.2011, D端sseldorf

The twice-yearly CPD SIGNATURES is an international fashion trade show offering an 44

attractive range of collections by international designers for the retail trade as well as new concept stands for exhibitors. The show is open to both trade visitors from the fashion and textile industry and representatives of the press. Registered visitors receive a personal invitation.

Gamescom, 17. 21.08.2011, Cologne

The gamescom is the largest trade fair for interactive games and entertainment. Insiders, dealers, publishers, developers and other interested visitors meet here to discover and test the latest computer games. Other draws for visitors are the gamescom congress and a number of live performances both indoors and out.

Art forum berlin, 29.09.02.10.2011, Berlin This year, the art forum berlin will once again be opening its doors to all those interested in art. Awaiting visitors to the international art show will be not only classical items such as sculptures, graphic works and paintings but also photographs, video art and installations. The show is open to the general public.

IAA, 15.-25.09.2011, Frankfurt With numerous world premieres and nearly one million visitors, the International Motor Show IAA in Frankfurt am Main is the world's largest and most important fair of its kind. The biennial event showcases commercial vehicles, buses and heavy goods vehicles as well as garage equipment, vehicle

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT bodywork and accessories. The show is open to both trade and non-trade visitors.

husbandry. The show presents innovations, trends and cuttingedge technology in the agricultural sector. AGRITECHNICA 2009 attracted more than 355,000 visitors from over 46 countries. Non-trade visitors are also welcome again.

Consumer Electronics Unlimited (IFA), 02. - 07.09.2011, Berlin MEDICA, 16.-19.11.2011, D端sseldorf The IFA in Berlin is one of the world's leading shows for entertainment and consumer electronics, presenting the latest trends and cutting-edge products in this sector. Non-trade visitors are also welcome.

Anuga, 08. 12.10.2011, Cologne Anuga is the leading international show for the trade and food service/catering market. As the world's most important food and beverage trade fair, it brings together ten specialized trade shows under one roof: Anuga Fine Food; Anuga Drinks; Anuga Chilled & Fresh Food; Anuga Meat; Anuga Frozen Food; Anuga Dairy; Anuga Bread & Bakery, Hot Beverages; Anuga Organic; Anuga Foodservice; and Anuga Retailtec. Held every two years, Anuga attracted nearly 150,000 visitors and more than 6,000 exhibitors from 98 countries in 2009.

Frankfurt Book Fair, 12. - 16.10.2011, Frankfurt Held every year since 1949, the Frankfurt Book Fair is the world's largest event of its kind. With more than 7,300 exhibitors from over 100 countries, it is the most important marketplace for books, media, rights and licences worldwide. As every year, non-trade visitors are also welcome.

MEDICA is the world's largest trade fair for medical technology and products. ComPaMED, the international trade fair for components, precursor products and raw materials for medical manufacturing is held in tandem with MEDICA in D端sseldorf. With 4,000 exhibitors from 60 different countries, MEDICA presents state-of-the-art equipment, products and systems for in- and outpatient medical care. The event is open to both trade and non-trade visitors.

Germany Trade and Invest is the economic development agency of the Federal Republic of Germany. The organization promotes Germany as a business and technology location and supports companies based in Germany with global market information. Furthermore Germany Trade & Invest informs and advises international companies setting up business in Germany and promotes the economic development of Germany's new federal states including Berlin.

AGRITECHNICA, 15. - 19.11.2011, Hanover Held every two years in Hanover, AGRITECHNICA is the world's largest exhibition for agricultural machinery and equipment. The principal sectors featured are agriculture and forestry, horticulture and viticulture, commercial fishing and animal 46

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

10 Reasons To Invest in Germany 1. Large Market

6. High Level of Innovation

With 82 million inhabitants, Germany is the European Union's most populous country and therefore also the largest market within the EU. With a gross domestic product of more than 2.2 trillion euros, Germany is the largest economy in Europe and the third strongest economy in the world.

Statistically, Germany has 277 international patents per one million inhabitants - more than anywhere else in the world. The close cooperation between industry and world-famous research institutions like the Max Planck and Fraunhofer Institutes swiftly transforms new ideas into products for the world market.

2. Central Location

7. Highly Developed Infrastructure

Germany's central location in Europe make it a hub for goods and services. Germany is especially benefiting from EU enlargement. As a result, it is the only country among the seven most important industrialized nations to increase its share of world trade since 1995.

3. Open Market

Germany has a closely knit network of roads, railways and international airports. That guarantees swift connections. The airport in Frankfurt is an international hub. The Port of Hamburg is one of largest container transshipment centres in Europe. Communications infrastructure is exceptionally well-developed throughout the country.

Germany is an open market and warmly welcomes foreign investors. That is demonstrated by the 22,000 foreign enterprises that have established businesses in Germany and now employ more than 2.7 million people. The German market is open to entrepreneurial investment in practically all areas. There are no longer any state-controlled industries. Germany is receiving increasing attention from private equity firms and hedge funds due to its highly attractive companies and favourable investment conditions.

Germany is a modern constitutional state with transparent and reasonable laws. The advantages are internationally recognized. The German legal system has served as a model for legal systems in many other countries. International studies demonstrate that German legal security is highly regarded by investors. Among all countries, Germany ranks fourth in terms of legal security.

4. International Location

9. Strong Mittelstand

8. Legal Security

More than 7 million foreigners live in Germany. Several metropolitan regions have prominent foreign communities with their own schools, churches, shops and restaurants. For example, a large number of Japanese live in the D端sseldorf region, many Koreans in and around Frankfurt and many Chinese in Hamburg. Approximately 70% of German blue- and white-collar workers can speak English.

The German economy is characterized by privately owned small and medium-sized firms, the Mittelstand. 85% of all businesses are small or medium-sized. This makes German industry very flexible, multifaceted and competitive. Many of these highly specialized firms are world market leaders in their field, so-called "hidden champions".

5. Qualified Personnel

10. World Famous Trademark

Germany offers an exceptionally well-qualified, motivated and conscientious workforce. German employees' high standard of knowledge and skills is internationally recognized. The demand for professionals is met by 383 institutions of higher education. Another pillar of the German training system is the "dual system" of vocational education, which combines workplace training and school instruction and produces an acknowledged high standard of training closely oriented towards the needs of industry.

Products with the "Made in Germany" seal stand for the highest quality worldwide. This has played no small part in maintaining Germany's position as world champion exporter for many years. The automobile, mechanical engineering, electrical engineering and chemical sectors are particularly strong. Industries of the future such as environmentally friendly energy production and nanotechnology, in which the number of patent applications is doubling every two years, are steadily gaining in importance. Foreign investors can profit from the "Made in Germany" seal of quality.

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

www.iandm.com.pk

Vol: XXXXIV

SPECIAL REPORT

www.iandm.com.pk

Vol: XXXXIV

www.iandm.com.pk

Vol: XXXXIV

www.iandm.com.pk

Vol: XXXXIV

www.iandm.com.pk

Vol: XXXXIV

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

Photo shows sitting (From l to r): Asif Shahzad - DH, CMT & HRC UBL, Rizwan Ali Hamdani, Business Development, Xpress Money, Hassan Raza - GE, CBG UBL. Sitting (From l to r): M Hanif Ibrahim - SPM, CMT & HRC UBL, Saad Kaleem - Head Products and Sales, CMT & HRC UBL.

Picture shows from l to r, Arsalan Nayeem, Commercial Director Barclays Bank, Adam Thomson, British High Commissioner, Shahzad Dada, CEO Barclays Bank Pakistan and Khawaja Asif, Retail Director Barclays Bank at the opening of the branch.

Khawar Khurshid Butt, Member (Inland Revenue), FBR presents a shield to Venezuelan Ambassador David Valesquez Caraballo who visited FBR house to hold negotiation on a treaty for Mrs Zareen Khan Yousufzai, wife of MD PIA, visits the airline avoidance of double taxation between the two countries. Al-Shifa Trust Rehabilitation Center.

Dr. Mirza Ikhtiar Baig, Advisor to the Prime Minister, Jam Madad Ali (Leader of Opposition in Sindh Assembly), Majyd Aziz, Ghazanfar Ali Khan, Saleem Ahmed (Secretary General TAAP) Fariba Shiraz Thomson, wife of British High Commissioner, and Abdul R. Sattar pose for a photograph taken at a recent event Chairperson Pink Ribbon Campaign for awareness against breast held by the Sri Lankan Consulate at a local hotel. cancer calls on Dr. Fehmida Mirza, Speaker National Assembly. 44

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

Naeemuddin Khan, President & CEO, bank of Punjab handed over the certificate and also awarded cash reward to the selected Khawaja Farooq and Khawaja Bilal cutting a ribbon to inaugurate Interwood's DHA Lahore showroom. branch manager.

Group picture of newly elected Board of Directors 2011 JCI PTA Chairman Dr. Mohammad Yaseen hosted by Qtel Deputy Paragon Arshad, Siddiq, Danish Zaka, Jaffer, Arsalan, Zulfiqar, Chairman H.E. Sheikh Mohammad Bin Suhaim Hamad Al-Thani, Sarfaraz with National President JCI Pakistan Mustansar Ahmed Qtel Group CEO Dr. Naseer Marafih, wi-tribe group CEO Sohail and assigned VP Warda. Qadri and wi-tribe Pakistan CEO Mustafa Peracha at the Qtel Group Pavilion in Barcelona during GSMA Mobile World Congress 2011.

Shahzad Ali Malik President LCCI, Maqsood Ahmed Butt Pfizer launched a Book "A world without smoking" by Ms. Chairman Aptpma cutting a ribbon at the opening ceremony of Marjorie Hussain. Megatech-2011 at Expo Center, Lahore. 44

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES Gulf Air, appoints Mr. Karim Makhlouf as Chief Commercial Officer.

Tahir Ahmed, MD NJI Insurance Company Limited with Mr. Ali Rahim, President Karachi Gymkhana along with the officials of PSBA and guests at the 4th NJI junior snooker championship 2011 held recently in Karachi.

Group photo of Chief Executive Trade Development Authority Tariq Iqbal Puri with Shabir Ahmed Patron-in-Chief Pakistan Prime Minister Syed Yousuf Raza Gilani (top R) and Tajik Bedwear Exporters Association (PBEA) and others on the occasion President Emomali Rahmon (top C) witness the ceremony as of a dinner reception hosted by PBEA in honour of TDAP chief. Secretary Health Nargis Sethi (R) shakes hand with Tajikistan Health Minister Nusratullo Fayculloo after signing documents.

To celebrate 100 years of International Women's Day, Telenor Pakistan arranged an event "Celebrating Women". Justice Nasira Iqbal (retd) was the chief guest at the event. Also seen in the photo (l to r) are Syed Salman, Shoaib Baig, Muhammad Sajwani, Anjum Rehman, Aamir Ibrahim and Rozina Pesnani. 44

Seen in the picture L-R: MUA Usmani, President, Ahmad Kareem, Group Head Human Resources, Riffat Khan Jadon, President MCB Staff Union of Pakistan (CBA) and others after the signing ceremony.

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

Mohammad Zubair, Country Representative, Chevron Pakistan Limited and S. Amjad Shabbir, Manager Policy, Government & Public Affairs, with the management and staff of Behbud Association, Karachi to mark the beginning of a partnership whereby 100 underprivileged women will be provided with basic literacy, free health facilities for their children and themselves, and vocational training to enable them earn their livelihood. The project is a part of Chevron's corporate program to improve the plight of underprivileged and marginalized women.

Ambassador of Japan Chihiro Atsumi, was the chief guest at PakJapan Business Forum (PJBF) annual general meeting at Kalim Farooqui's residence. Photo shows Chairman PJBF Abdul Kader Jaffer, Japan Consul General Sato, Majyd Aziz, A Sattar, Aziz Memon, Salahuddin Haider with other guests.

The PIFFA Life time Achievement Award to Mian Tariq Mahmud, Chairman TAQ Organization, being received by his son Asad Tariq, Director TTO, on his behalf from Jan Hoffmann Chief Trade Facilitation Section UNCTAD and Markus Schoni Manager ABVT FIATA. 44

Punjab Law Minister Rana Sanaullah, President ICMAP Hasan A Bilgrami, Deputy Auditor General Usman Khan, GM Finance OGDC Muhammad Rafi and Hanif Ajari at a moot on 'Public Sector Accounting in Pakistan' organized by the Institute of Cost Management Accountants of Pakistan.

Consul General of the Republic of Germany Dr Christian Brecht and Mrs Brecht, hosted farewell reception to the deputy head of mission Consul Dieter Freund and Mrs. Tina Freund, at their residence. Photo shows Consul General of France, Abdul Qadar Sattar and Mrs. Sattar with other guests.

At the signing ceremony of Project Pakistan the Vice Chancellor of NED University Engineer Abdul Kalam and MD Siemens Pakistan Sohail Wajahat Siddiqui exchanging documents. Also present on the occasion Dr. Michael Koch, Ambassador of the Federal Republic of Germany, Nadeem Kazmi Head of Sector Energy, MN Arsalan head of HR and Major A A Zuberi (Retd) head of SER.

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

PTCL President and CEO, Waleed Irshad inaugurating the pilot project of Public /Cash Card payment Machine (PCPM) - bill payment points for PTCL services - at Metro here. SEVP Commercial, Naveed Saeed and other officials are also present on the occasion.

Dr. Muhammad Yaseen, Chairman Pakistan Telecommunication Authority (PTA) addressing a conference on 'UBL Mobile Commerce', at a local hotel. State Bank of Pakistan Deputy Governor Yaseen Anwar, President United Bank Limited Atif Bukhari are also seen in the picture.

Governor, State Bank of Pakistan, Dr. SHahid H Kardar recently visits OICCI to discuss the fiscal deficit of the country and its impact on foreign investments in Pakistan. Seen in the picture Ambassador of Pakistan to Germany Shahid Kamal giving away are (from left to right) Hymayun Bashir, Asif Joom, Ameena shield to representative of German Relief organization in Saiyid, the Governor SBP, Naved A Khan and M Abdul Aleem recognition of their valuable services during recent floods in Pakistan.

The Consul General of Saudi Arabia Faleh Muhammed Al Ruhaily, hosted a dinner at his residence in honour of Saudi navy delegation headed by Rear Admiral Ibrahim Bin Usman Al Deljan. Photo shows host, Saudi Navy officers and Arif Suleman with other guests. 44

Federal Board of Revenue (FBR) Chairman Salman Siddiqui addressing a meeting at Karachi Chamber of Commerce & Industry. The Chamber President Mohammad Saeed Shafiq is also seen in the picture.

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

Robert Gibson Deputy High Commissioner and Director Trade and Investment Pakistan (British High Commission) inaugurating the first Next outlet at Park Towers. Yasin Peracha, Managing Director Team A Ventures, Aziz Munir, Brand Manager Next and other dignitaries are also seen in the picture.

Roger Tabor speaking at a seminar organized by Institute of Chartered Accountants of Pakistan

Federal Minister for Finance Dr Abdul Hafiz Shaikh giving away Wonder Woman of the year Award 2011 to President/CEO and Chairman First Women Bank Ltd Shafqat Sultana in a ceremony Photo shows (l to r) Mazhar Hussain, Sr. Relationship Manager, organized by National Hero Foundation in collaboration with Shafquet Asim, Head Financial Institutions Division, Biao Huang, Ministry of Finance, Government of Pakistan. Investment Specialist of ADB and Habib Yousuf, Group Head, Corporate Investment Banking & FI.

Provincial Chief Minister, Syed Qaim Ali Shah with the participants of International Halal Conference, organized by Pakistan's Ambassador to Germany, Shahid Kamal talking to Sindh Board of Investment at a local hotel. guests at Pakistan Day reception held in Berlin. 44

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

A group photo of newly elected Chairman Aftab Ahmed Khan, MD LSE Aftab Ahmed Chaudhry, COO Farid Malik with the Prime Minister Syed Yousuf Raza Gilani viewing a model of a LSE's board of directors. car during his visit to Turin Polytechnic University

Utku Yazan, Country Manager Turkish Airlines presenting souvenir Masood Hashmi, President Marketing Association of Pakistan to Saifuddin Zoomkawala, Chairman PGBF and Chairman EFU presenting a shield to Asad Umer, President Engro Corporation during a meeting at EFU Head office. on the occasion of Marcon International Marketing Congress ceremony held in Lahore. Salman Amin, Chief Marketing Officer, Pepsi Co., New York, Nasir Javed, Chairman Marcon Committee and Tariq Asmat, Vice President Lahore Chapter also seen in the picture.

The Director General of the office of H.H. Sheikh Nahyan Bin Zayed Al-Nahyan, Mohammed Abdul Khaleq Al-Khoory hosted a dinner at Falcon House. Photo shows former Nazim Mustafa Minister for Defence and Chairman PIA, Chaudhry Ahmed Kamal, Consul General of UAE, Sohail with other prominent Mukhtar and Managing Director PIA, Nadeem Khan Yousufzai signing the Earth Hour 2011 poster at airline's head office. guests. 44

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

CEO of Bank Alfalah Limited Sirajuddin Aziz Speaks during Mukhtar A. Sheikh, Chairman, Ibrahim Group, Waseem Mukhtar Director, Khalid Sherwani, President ABL and Muhammad Aamir the 19th Annual General Meeting. Sheikh, Regional Head ABL snapped after inauguration of Allied Bank Branch at Canal Road.

Managing Director BASF Qazi Sajid Ali hosted a farewell dinner in honour of Dieter Freund and Tina Freund recently. Seen in the Consul General Suhail Bin Matar Al-Ketbi of UAE Consulate picture are German Consul General Dr. Christian Brecht, Mrs. giving memento to PTCL SEVP Business Zone South Abdullah Zarina Sajid Qazi, Yasir Ali, Afshan Yasir and others. Yousef Abdullah on rendering PTCL's best services.

19th Annual General Meeting of Askari Bank Limited. From l to r: M. A. Ghazali Marghoob, M.R. Mekhari, Lt. Gen. Imtiaz Hussain (Retd.), Zafar Alam Khan Sumbal, Maj. Gen. Saeed Ahmed Khan (Retd.)

Asif Saad, CEO, Lotte Pakistan PTA Ltd. And Marriyum Aurangzeb, Head Corporate Relation Communication and Funding WWF-Pakistan signing partnership agreement to sponsor WWF Echo internship programme for students of Karachi.

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

Prime Minister Syed Yusuf Raza Gilani addressing at the 3rd National IPR Conference 2011 organized by Intellectual Property Syed Mahmood Hashmi, Chief Executive, Orient Advertising Organization Pakistan in Islamabad receiving Special Business Performance Award from President Asif Ali Zardari during 21st APNS Advertising Awards Ceremony.

Bilal Mustafa, Managing Director of the Bank of Khyber addressing the shareholders, BoK senior management at 20th Annual General Meeting (AGM) held at Head Office. (L to R) Govt. of Khyber Pakhtunkhwa Finance Dept. representative Nazir Ahmad Awan, Nadeem Bashir, MD, BoK Bilal Mustafa, Bok Iranian Consul General Muhammad Hussain Bani Assadi is giving Executive Director Mir Javed Hashmat, Bok Member Board shield to President LCCI Shahzad Ali Malik while Chief Executive Muhammad Asif and Maqsood Khan are seen in the picture. Sitara Fibes Mian Tariq Mahmood is standing with him.

Minister for Tourism Azad Jammu and Kashmir (AJK), Tahir Hussain Khokhar, Amir Kazi, General Manager PC Muzaffarabad, Sindh Governor Dr. Ishratul Ibad Khan giving certificate for Jamil Khawar, Group media Advisor Hashoo Group, Sohail outstanding performance to Mushir Khan PTCL General Manager Sheikh, VP Sales & Marketing Hashoo Group of Hotels & others in KATI annual dinner function held at a local hotel. at press conference on Tourism here at PC Muzaffarabad 44

www.iandm.com.pk

Vol: XXXXIV

NEWS IN PICTURES

EFU Life and Askari Bank launch Bancassurance and Co-Brand Credit Card

EFU Life Assurance Ltd and Askari Bank Limited launched Bancassurance and CO-Brand Credit Card. Through bancassurance, Askari Bank will distribute EFU Life's education and marriage, savings and life protection and retirement plants to its massive customer base. The Co-Brand Credit Card, which is the first ever by a bank and insurance company in Pakistan, will be promoted to EFU Life's existing and potential customers.

Celebrating Byco's New Jet Fuel Terminal

Byco, the fastest growing OMC in Pakistan, achieved another milestone by successfully inaugurating its first Jet Fuel Terminal in Keamari "Universal Terminal Limited". This state-of-the-art terminal exceeds the latest safety standards and is designed for rapid disbursement of product through multiple points into a single tank lorry. Seen in the large photograph is Ms. Nasreen Haque, Chairperson KPT receiving the memento from Mr. Amir Abbassciy (CEO, Byco Petroleum). Also seen in the photograph are Mr. Kalim A. Siddiqui (President, Byco Petroleum) and Mr. Mansoor Rashid (CEO, UTL). The smaller photos capture their presentation sessions. 44

www.iandm.com.pk

Vol: XXXXIV