Germany, Pakistan forge economic deal, pledge cooperation

BERLIN - Pakistan Prime Minister Yousuf Raza Gilani and German Chancellor Angela Merkel promised closer cooperation between their two countries Tuesday, and heralded the signing of a new economic agreement in Berlin.

Gilani is on a four-day visit to Germany to discuss economic cooperation, as well as the insurgency along the border between Pakistan and Afghanistan.

A new German-Pakistan “Investment Promotion and Protection” Agreement was signed between the two states, to replace a deal signed in 1959, which had been the world’s first bilateral economic agreement of its kind.

“Germany stands ready to help Pakistan in energy, mutual investments, and technology transfer - particularly with regard to the agenda of the climate conference in Copenhagen,” Merkel said.

The chancellor added that Pakistan’s stability is of interest to Germany, given Berlin’s long-standing relationship with that country and the fact that 4,500 troops are stationed in neighbouring Afghanistan.

“We know that Pakistan has suffered very much under terrorism. You need to combat terrorism wherever you find it, but that alone will not be enough to ensure a prosperous future. We have tried to help stabilize the economic situation of Pakistan,” Merkel said.

Gilani offered Pakistan’s congratulations on the occasion of the 20th anniversary earlier this month of the fall of the Berlin Wall.

Heralding the economic agreement, Gilani also called on Germany to promote greater access to European Union markets for Pakistani exporters.

Germany is Pakistan’s fourth-largest trading partner and its biggest in the EU.

The bilateral investment deal aims to provide greater legal security for German firms investing in the Islamic state, such as access for international arbitration, improved compensation regulations, and smoother capital transfer processes.

On Nov 24, the German government said it has provided an extra 10 million euros ($15 million) this year for the development of good-governance in Pakistan.