12th Oct 2013

Pakistan, Danish Companies discuss possibilities to boost trade ties

Business Recorder, 12th October 2013

Danish companies and their Pakistani partners met on Friday to discuss possibilities to further increase trade relations. The meeting, chaired by new Danish Ambassador to Pakistan Jesper Moller Sorensen, was held in Karachi.

According to Ambassador Sorensen, Pakistan has huge potential for Danish companies. "Pakistan faces challenges in some of the areas where Danish companies have strong hold like renewable energy, energy efficiency, healthcare solutions and the food and agricultural industry. We want to work together with the companies already doing good business in Pakistan as they are role models for other Danish companies. Later this year, we will also open a commercial section at the embassy to assist more Danish companies. It is also clear that some Danish companies are reluctant about Pakistan. They are concerned about security, energy shortages, and ending up in legal disputes. If some of these concerns are alleviated, even more Danish companies will engage themselves here," he added.

Novo Nordisk is a global leader for diabetes care products. Participating in the meeting, Head of Novo Nordisk Pakistan, Rana Azfar Zafar stated that: "Millions of Pakistanis suffer from diabetes and do not get the proper care. Pakistan's awareness about health risks, lifestyle diseases and diabetes is still limited. Novo Nordisk sees a vast potential in Pakistan, and with a population of almost 200 million people expected to rise to around 275 million in 2050, Pakistan should also be a very potential market for other Danish companies."

The Danish toy brand LEGO, which started its operations in Pakistan through their distributor Marketing Plus with a soft launch of its website www.IKnowMyToys.com last year, launched its first Flagship store of LEGO earlier this year in Karachi.

Bilal Saleem, CEO of Marketing Plus stated that almost 35 percent of the population was below the age of 14, and the growth rate is expected to remain high for many years. "As we seek to expand our operations in Pakistan, we also want to make our contributions in increasing the level of education by setting up institutes across the country to enhance the creativity among the Pakistani youth through the use of ingenious products by LEGO."

A P Moller - Maersk is the world's largest container ship operator and supply vessel operator. Morten Jensen, Head of A P Moller - Maersk in Pakistan, stated: "There are certainly many challenges in Pakistan. Surprisingly, Pakistan is offering a well-functioning, transparent and price competitive infrastructure creating a reliable supply chain. In addition, with more than 20 million people, Karachi is one of the world's largest cities with a rapidly growing middle class leading to a great potential for Maersk Line and for other Danish companies. The time is right for companies that dare become part of one of the potentially fastest growing economies in Asia." In 2012, the total Danish export of goods to Pakistan was US $93 million. The main areas were machinery, pharmaceuticals, food stuff and raw materials. In 2011, it amounted to US $94 million, almost all related to the Maritime industry.

In 2012, Pakistan's total export of goods to Denmark was US $95 million. Around 40 percent was related to the textile industry. In 2011, it amounted to US $81 million, of which 45 percent was related to the Maritime industry. The Danish embassy in Pakistan will open a commercial section on December 1, 2013, headed by a commercial advisor.