Newsletter for November/December 2018

This newsletter is sent to approximately 40,000 contacts in Germany and Pakistan.

Consul's Corner

Dear Friends, Approaching the end of 2018 in fairly big steps, let me summarize with great appreciation and thankfulness the warmwelcome I experienced when assuming my duties here in Karachi and the excellent co-operation we have. It has been a very successful year in many terms. The consultant from Germany, Mr. Franz Nienhaus, joined the team ofGPPCI during this year and is assisting the Chamber with great expertise based on profound knowledge and experience. A highlight for all of us was the visit of a sizeable Business Delegation from Bavaria to Karachi, which was commendablyorganized by the GPPCI, and also to Islamabad. Many of the visiting companies have shown interest in Pakistan as a landfull of opportunities and with great potential, and we hope to soon learn more about the constructive outcomes and newbusiness ties from their visit. The German Consulate General organized a considerable number of events during the German Weeks 2018 with an arrayof interesting events related to economics, politics, and culture. The Christmas market to be held on the Consulate’sgrounds will be a highlight for the young and the young in heart alike. The 2nd Annual Chamber Night of GPCCI will finallyconclude the year with a very festive setting in our residence garden and showcase the joint service for ever betterGermany-Pakistan relations. Let me take this opportunity to extend my most cordial season’s greetings to you, all the members of GPCCI and theirfamilies, and may I wish you a Merry Christmas and a prosperous and happy New Year 2019. Yours sincerely,Eugen Wollfarth

Consul General

Secretary General's Corner

In 2012 HSBC published a report “The world in 2050” wherein it is projected that by 2050 Pakistan will have the sixth largestpopulation in the world. “Even if some of these countries remain relatively poor on a per-capita basis, they could see adramatic increase in the size of their economies thanks to the population growth.” The sheer size of Pakistan’s working population can drive our economy to greater heights. What is needed is an enhancedfocus on education & vocational training, a better much larger infrastructure of roads/railways networked throughout thecountry. This coupled with our newest jewel in the crown our link up with the One Belt One Road (OBOR) with the world,through the China Pakistan Economic Corridor (CPEC) cements the groundwork for Pakistan to make great strides forward. Pakistan is uniquely positioned to link Africa’s east coast, the entire Middle East, and surrounding region with the heart ofAsia. European companies especially Germany have highly developed industries which need to find new markets for theirproducts & advanced technologies. China & India to date are attractive new markets, which the world is trying to captureand infiltrate since quite a while now and this task is not that easy due to the quantum of players entering. Pakistan wascomparatively not the prime focus as a new market, however this perception is fast changing, those overseas companiesrealizing the potential in this untapped resource, are stepping in, and they will reap the rewards of this move as firstentrants. Some German companies have begun to understand this potential in doing business in Pakistan, by expandingtheir presence or making new inroads into Pakistan on their own or through joint ventures, to thereby sell their products, inthis strong growing consumer market. Yet untouched is the subject of unexploited mineral resources that are present in Pakistan, another opportunity waiting yetto be explored. Pakistan has a new government which has expressed the desire to address and correct the various issues that they haverecognised as an impediment to growth, this coupled with all the points I have just mentioned should sow the seeds for aclimate that is conducive to investment from overseas. Pakistan businesses have great respect for the reliability, longevity and high precision of German products, with a world-renowned acclaim for German engineering, there is also in place a long-established strong relationship between Germanyand Pakistan of over half a century, resultantly setting a strong foundation for German companies to do business with andin Pakistan. The German Pakistan Chamber of Commerce & Industry was envisaged through bilateral talks between the twonations to be a bastion for companies of the two nations to thrive therein driving growth and prosperity. A Land of Opportunity, Exploring This Yet Untapped PotentialBy Danesh Dinshaw Published in Dawn Special German Unity Day supplementOctober 2018

German Delegation Visit on 31st October 2018

First row from left to right: 2nd: H.E. Martin Kobler, German Ambassador, 3rd: Abdur Razzaq Dawood, Advisor on Commerce, Textile, Industries & Production and Investment in the Ministry ofCommerce, 4th:State Secretary Walter Lindner, German Foreign Ministry

A German business delegation headed by State Secretary Walter Lindner, German Foreign Ministry, visited Pakistan. Thedelegation met in Islamabad with Illango Patchamuthu, World Bank Country Director, Teresa Daban Sanchez, IMFResident Representative, Abdur Razzaq Dawood, Advisor on Commerce, Textile, Industries & Production and Investmentin the Ministry of Commerce, Zafar Hasan, Secretary Ministry of Planning and Members of the Planning Commission, andOmar Ayub Khan, Minister for Power. Among the high ranking delegation members were representatives from Germany and Middle East headquarters ofDeutsche Bank AG, Obst & Ziemann International GmbH, SAP, MAN Trucks &Bus, WIKA, Metro AG and Voith HydroGmbH & Co. KG. The meetings were organized by German Embassy and accompanied by GPCCI member Helmut vonStruve, Managing Director of Siemens Pakistan, and Franz Nienhaus, GPCCI Advisor to the Board of Directors. The members of the delegation informed themselves about the development plans of the Pakistan government and waysand sectors of cooperation with German businesses. During the meetings several representatives of the Pakistangovernment expressed their preparedness to support setting up a bilateral chamber under the roof of the German AHKworldwide network.

High-Level Businessmen Delegation Visit from Bavaria, Germany

A high-level German businessmen delegation arrived in Karachi on a five-day visit to Pakistan. The visit of the delegationcomprising of 36 executive level decision-makers of various German business houses including IT, manufacturing andservice sectors, was organized by the Bavarian Ministry of Economic Affairs in collaboration with the Honorary Consulate ofPakistan in Munich and Pakistan Embassy in Berlin. The objective of the visit was to explore opportunities for joint venturesand innovative business in the emerging economy of Pakistan. It was the first official Bavarian delegation after 20 years. To commemorate the arrival of the German Delegation, the German Pakistan Chamber of Commerce and Industry held aninauguration ceremony which was graced by the honourable Chief Minister of Sindh Syed Murad Ali Shah and theProvincial Minister of Sindh for Energy Mr. Imtiaz Ahmed Shaikh. The event was also graced and supported by the ConsulGeneral of Germany in Karachi, Mr. Eugen Wollfarth and Development and Cultural Attaché of German Consulate inKarachi, Mr. Ingolf Vogel. The delegation was led by Dr. Pantelis Christian Poetis, Honorary Consul for Pakistan in Bavaria, and the senior MinisterialCounsellor of the Bavarian State Ministry of Economic Affairs, Energy and Technology, Mr. Ulrich Konstantin Rieger. Theevent was followed with a networking session between the German delegates and Pakistani business professionalsincluding GPCCI members. This session remained effective in information sharing for the purpose of exploring futurebusiness opportunities in sectors covering pharmaceutical, technology, manufacturing, construction, renewable energy etc.

MoU signing in the pharmaceutical industry between Power Group Bavaria Germany and ICS GroupPakistan

During the inauguration ceremony hosted by the German Pakistan Chamber of Commerce & Industry on 22nd October,2018, an MoU was signed in the pharmaceutical industry between Dr Poetis of the Power Group Bavaria Germany and Mr.Adnan Hussain of ICS Group Pakistan. The MOU will provide the Parties the framework to work together and cooperate to establish the distribution of Germanpharmaceuticals via Pakistan as logistic hub in Pakistan and the region, with particular focus on Muslim countries, and, as asecond step, to establish halal pharma production in Pakistan in cooperation with a German partner, potentially through ajoint venture. The Parties will explore avenues to expand the scope of the MOU not only in German pharmaceuticals distribution anddevelopment of halal pharma production, but also in support of overall development objectives.

53rd Symposium Purchasing and Logistics, Held in Berlin, Germany on 14-16 November 2018

From Left to right: Representative of BME, Dr. Afreen – Director of Healthline Pharmacueticals (Pvt) Ltd, Mr. Amanullah Sheikh CEO of Healthline Pharmacueticals (Pvt) Ltd, Mr.

Ayaz Thaver – Chairman Industry Expert Group for textile and leather of German Pakistan Chamber of Commerce & Industry (GPCCI), Mr. Horst Wiedmann – CEO of BME, Mr.Muhammad Asim Aqil – COO of Thal Ltd.Engineering Division

The largest Procurement Summit BME Symposium took place in Berlin in November this year. The current globalchallenges and megatrends of digital transformation as well as repositioning of procurement were central topics of theevent. Almost 2000 buyers, logistics experts, and supply chain managers discussed the opportunities and risks associatedwith industry 4.0 at the three day went.GPCCI took part in this year with two progressive Pakistani companies namely Thal Engineering and HealthlinePharmaceuticals Pvt Ltd. Thal Engineering the parent company in engineering and automobile sectors of the House of Habib, was represented byMr. Muhammad Asim Aqil and Healthline Pharmaceuticals (Pvt) Ltd. from Lahore in the Pharmaceutical industry, wasrepresented by Mr. Amanullah Sheikh & Dr. Afreen.Mr. Ayaz Thaver led the delegation on behalf of the German Pakistan Chamber of Commerce & Industry. Both participating firms did make contacts, they displayed their impressive brochures and samples at the GPCCI booth,which were well appreciated by visitors. With aggressive follow up as always results will surely take place. The GPCCI booth was graciously sponsored by Mr. Ayaz Thaver and Mr. Kalim Farooqui to promote the activities of GPCCIin terms of trade and investment between Pakistan and Germany.

A view of the B2B meetings of the delegates.Picture source : Tanja Marotzke/Peter-Paul Weiler/BME e.V.

German Firm Plans to Tap Pakistan Business Potential

A high-tech German company specialized in developing and manufacturing high-end products is looking forward to explorethe Pakistani market through local partnership to tap business and investment potential. “We are a partner of China power,a big Chinese electric power company and our company also intends to explore business and investment opportunities inPakistan which is an important country in South Asia,” Sales Executive of IBG Hydro-Tech, Dirk Gerber told APP here onSaturday. Gerber is currently visiting China to attend the five-day China Hi-Tech Fair in Shenzhen in South China’s Guangdongprovince. He informed that his company is already working in the Indian market but its management is also looking forwardto directly approach the Pakistani market. Expressing confidence into the current economic situation in Pakistan, he saidthat Pakistan’s economy is now gearing and there more business and investment opportunities for foreign companies. About the functioning of his company, he said it focusses its activities on developing and manufacturing high-qualityproducts in the field of robotics, sewer cleaning, and pipe rehabilitation. The company, located in Budingen near Frankfurt,offers products that can be customized to client needs – from the single system components up to complex equippedvehicles of all kinds, he added. He said the experience over 40 years together with close teamwork on both national and international projects allowed thecompany to provide market-driven product solutions. It is 40 years ago, the company started to engineer cleaning nozzlesfor an efficient and reliable sewer cleaning. “Now we also manufacture chain rotation and milling systems.” Gerber, a formerhockey player, knows much about Pakistan its business environment and is satisfied with the current security situationthere. Published in "The Nation" on November 18, 2018

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