France and Pakistan sign agreement to establish Joint Business Council

France and Pakistan sign agreement to establish Joint Business Council

2011-05-04 22:43:04 GMT+7 (ICT)

PARIS (BNO NEWS) -- France and Pakistan on Wednesday signed a Memorandum of Understanding (MoU) to establish a Joint Business Council to promote trade, the state-run APP news agency reported.

The agreement was signed between the Pakistan Business Council and the MEDEF (Mouvement des Entreprises de France), the largest union of workers in the European country. Pakistani Prime Minister Syed Yusuf Raza Gilani also attended the ceremony.

Gilani encouraged French companies and businessmen to invest in the Asian country and not to fall for the "propaganda" about the volatile security situation. The Premier added that the perception of his country did not match with the on-ground situation.

In regards to the MoU, Gilani said that the signing was an "immense significant step" for both France and Pakistan as it would translate in the establishment of mutual understanding and cooperation.

Details of the agreement were not disclosed at the moment but Gilani said that it will benefit trade and promote involvement of private investors, which Pakistan considers important for strengthening bilateral relations.

The Pakistani Premier also met with Gerard Larcher, President of the French Senate, in order to discuss improving the interaction between both nations' parliaments to strengthen diverse ties.

"Regular contacts between the parliamentary delegations of two countries will help strengthen the democratic norms and learn from each others experiences," said PM Gilani.

French companies have invested in Pakistan in recent times. Total group has 9,000 Pakistani employees at their facilities in the Asian country which have been running for 15 years.

However, investors said that high corporate taxes are a deterrent in investment and for expanding operations. Gilani said that he directed the Ministry of Finance to look into the issue and to provide a consistent tax policy.

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