Issue # 606 - 24th Anniversary: Reunification of Germany

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TABLE OF CONTENTS
10
COVER STORY
REUNIFICATION
GERMANY
OF
History from Newspapers
Focusing on German History from

Berlin Crisis (1945) to Reunification (1990)
I&M Exclusive
INTERVIEW
07 Both parts of Germany are not only growing

together but they are also mentally and
spiritually unified
Dr. Tilo Klinner, Consul General of Federal Republic of Germany in Karachi

talked to I&M Editorial Team
SPEECH
18 The Human Urge for Freedom

Cannot Be Suppressed Forever
Federal Chancellor, Angela Markel at
the 6th Falling Walls Conference, Nov 08, 2014
GLIMPSES
20 24th Reunification Day 2014

Pictorial gallery of celebrations at
German Consulate General in Karachi
GERMANY & PAKISTAN:

A VALUABLE RELATIONSHIP
BRIEF NEWS
25 Issues of energy crisis wil be resolved soon

PM Nawaz visited Berlin, Germany on the invitation of
Ms. Angela Markel, German Chancellor
INTERACTION
26 The next step will be the Chamber

Overseas Contact:
Present & future activities of GPti

Qazi Sajid Ali, Chairman, GPti
GLIMPSES
31 Celebrating the Launch of GPti

Pictorial gallery of the launching ceremony
ARTICLE
Oct 14
33 PGBF-GPti-GATE Pakistan
A Trilateral Network
Plans laid for German Pakistan

Chamber of Commerce & Industry
INTERACTION
35 Pakistan is the country no one can ignore

606
Nadeem Kazmi, President, PGBF

Talking about his association with PGBF, its success and future plans
PAPER
37 Assessment of German-Pakistani Relations in

Trade, Investment and Strategic Cooperation
By Talat Mahmood
Excerpt from the discussion paper
BUSINESS INTERVIEWS
44 We cannot compromise quality
Ms. Andrea Cornelissen, CFO, Bayer Pakistan

Talked to I&M about her experience as a corporate executive in
Pakistan and about Bayer activities.
46 We devise customized solutions that no
other financial institution can do.
Mr. Qaseem Jaffri, Country Head, DS Cocept Factoring

Talked to I&M about the success of DS Concept in Pakistan
SPECIAL FEATURE
Technical Vocational Education

GLIMPSES
51 Two Year Review of GPATI
Pictorial gallery of celebrations at German Consulate on

the successful completion of GPATI 1st Batch
SPEECH
52 My Successful GPATI Journey

Where I Was to Where I Am
Annas Kaser sharing his experience as

a trainee of GPATI
GLIMPSES
55 GPATI-OJT Session at DB Schenker

Pictorial gallery presenting OJT session of
GPATI at DB Schenker
ARTICLE
57 GPATI & the Significance of
Vocational Training in Pakistan
Articulating success of GPATI &

the need of Technical and Vocational Training in Pakistan
I&M Exclusive
CONFERENCE
61 Sustainability Exchange Conference
Highlighting the role of technical and vocational skills

Organized by Engro Foundation
ARTICLE
62 Revitalize:
Vocationalization of General Education

Necessary for Youth Employment
By Dr. Masroor Ahmed Shaikh

Paper presented in National Round Table Conference on
Technical Education and Vocational Training
Organized by NAVTTC in collaboration with UNESCO at Islamabad
DIPLOMATIC CORNER
70 Belgium
Belgium Food Festival 2014 organized by

Pakistan Belgium Business Forum
Fasten your seatbelts not too tight as there
is plenty of food
Mr. Jan Verduyn, General Manager, Karachi
Marriott Hotel, talks at the Belgium Food
Festival 2014
74 Indonesia
Welcome Dinner for Indonesian Naval Ship

KRI Frans Kaisiepo-368 hosted by
Mr. Hadi Santoso, Indonesian Consul General
in Karachi
75 Germany
Dr. Cyrill Nunn, Ambassador of Germany to

Pakistan and Mr. Marc Andre Franche,
Country Director of UNDP in Pakistan signed
an agreement of 1 million euros to support
displaced persons
Dr. Cyrill Nunn, Ambassador of Germany to
Pakistan hosted dinner for the Speaker,
Mr. Ayaz Sadiq & German Friendship Group
of the National Assembly
77 Thailand
87th Birthday Anniversary of His Majesty

King Bhumibol Adulyadej, hosted by Mr.
Pisoot Suwanrasami, Acting Consul Gerenal
of Thailand
EVENTS
78 Merck Calendar 2015
Merck has Selected the Work of Imran

Qureshi for its Calendar. Launch Celebration
held at PC Hotel Karachi, November 29, 2014
79 Cultural Heritage of Sindh
Seminar organized by Sindh Ministry of

Culture, the Consulate General of Germany,
the Goethe Institute, Karachi and the
Heritage Foundation.
MONTHLY REVIEW
80 Capital Market Review &

Outlook
by AKD Securities
COMPANY NEWS
editorial
German Unity Day, on October
3rd, is the German national
holiday, a sort of German
Fourth of July. Both the observance date and the holiday are
recent. The third day of October
has only been a national holiday since 1990. Why this date?
Before the fall of the Berlin Wall
in 1989 and German unification
in 1990 (known in German as
die Wende, the turning point),
few West Germans even knew
the date of their nations founding (23 May 1949). It was never
celebrated as an official holiday.
East Germanys national day
was October 7 (Tag der Republik), commemorating the founding of the socialist German
Democratic Republic in 1949. In
West Germany after 1954, the
date of June 17 was observed as
a national holiday (see below),
but it was never anything like
July 4th in the US. Since the Nazi
era, nationalism and overt
patriotism were frowned on by
most Germans. Flag-waving
was only seen at soccer matches
and neo-Nazi gatherings.
The selection of the date for
united Germanys new national
day was subject to concerns
about events related to Hitlers
rule and Nazi crimes against
humanity. Even the day on
which the Wall opened in 1989
(November 9) coincided with
the date of the infamous
Kristallnacht (night of broken
glass) anti-Jewish pogrom in
1938. Were it not for this unfortunate historical coincidence,
November 9 probably would
have become the

national holiday.
German
It would have been a much

more appropriate date than the
day the German reunification
treaty took effect, which is what
happened. (By the way, the
American Declaration of Independence was approved on July
2, 1776, not on July 4th. The
fourth was simply the date at
the top of the document, and
the date it was sent to the
printer. The Declaration was not
actually signed until August 2.)
Einigungsvertrag
(German
Unity Treaty)
The 1990 treaty that officially
unified East and West Germany
and made Berlin a new Bundesland (state) and the capital of
the Federal Republic of Germany was signed on August 31
and went into effect on September 29, 1990. The treaty designated October 3 as the day on
which the German Democratic
Republic
officially
would
become part of the Federal
Republic of Germany and subject to that nations constitution
(Grundgesetz), and that is why
the third day of October is now
the German national holiday.
Although you will see German
flags flying at the Reichstag
building in Berlin and in other
public locations, private flags
and public fireworks are not a
big part of the October 3
celebration. Most people enjoy
the day off and spend time with
friends and family. Politicians
make speeches and there are
special TV broadcasts about
German history. In Berlin there

are usually open-air concerts or
other festivities near the
Brandenburg Gate.
A unique feature of German
Unity Day is an observance in
the capital city of one of
Germanys 16 states. Each year
the state that is presiding over
the Bundesrat (upper house)
hosts the celebration, which
includes a Brgerfest (citizens
festival). In 2011 an exception
was made for the state of North
Rhine-Westphalia. Instead of
the capital (Dsseldorf), the
Unity Day festivities took place
in Bonn, the former West
German capital.
Key Dates in German History
Following the establishment of
the German Empire (Deutsches
Reich) there was no official
national holiday, but Sedantag
(commemorating a significant
victory at the French town of
Sedan during the FrancoPrussian War on 2 September
1870)
was
traditionally
observed as the Prussian
national day. 9 November 1918
| Proclamation of the Weimar
Republic following WWI; the
constitution was approved on
31 July 1919. The national day
was 11 August, the date when
President
Friedrich
Edert
signed the Weimar constitution
in 1919. 9 November 1938 |
Kristallnacht (night of broken
glass), a nationwide antiJewish pogrom conducted by
the Nazis in 1938.
Reunification of Germany
Both parts of Germany are not only growing together
but they are also mentally and spiritually unified
Dr. Tilo Klinner,
Consul General of Germany in Karachi
I&M: How do you view the Reunification of Germany?

Dr. TiloKlinner (Dr. TK):The reunification of Germany
seemed to be a dream in 1988 but it became a reality just
after two years. I think the major elements that catalyzed
the process of change were psychological and political.
People were living in German Democratic Republic (East
Germany) with very limited civil rights. You cant actually
stop the natural urge to live a self-determined life by
force in the long run. That is the psychological element of
it, whereas the political aspect was the collapse of socialism and disintegration of the then Soviet Union. We
should understand that only both components working
together made the change possible.
If you look at the eastern part of Germany, 24 years after
reunification, you will see a great achievement. The infrastructure and living standard of people have improved
tremendously. There used to be a demographic movement from the east to the west of Germany but last year
for the first time a reversal of the trend has been
observed. The government invested over two trillion
euro on the industrial rehabilitation and development of
former East Germany. All Germans paid more taxes and
the whole country underwent very drastic economic
reforms.
I&M: Let us turn from the subject of reunification to the

subject of GPATI. What are some of the details of the
development of GPATI? What are the short-term results?
What are the future plans?
I&M: Does a mentality gap between East and West Dr. TK: The German Pakistan Training Initiative (GPATI) has
been running successfully for one and a half years. This
Germany still persist?
project was initiated as pilot project with the help of two
Dr. TK: We no longer have a large mentality gap. Now vocational training institutes (AMANTECH and iACT), GIZ,
both parts of Germany are not only growing together but our international cooperation organization as well as
they are also mentally and spiritually unified. There are German and Pakistani multinational companies. The idea
still some differences in the perspectives and opinions as was to build-up a demand-driven vocational training
far as defense and security matters are concerned, but system.
these you can find between North and South Germany as
well. People are naturally different from one region to the
other, but by and large its a very homogenous country.
The generation under thirty has no personal recollections of the German separation. For them the GDR and
the fall of the wall are rather a part of contemporary
history than an element of their individual biography.
Why do we focus on the reform of the TVET sector? As

Pakistan is a country with around 53% population under
the age of 25 that constitutes about 100 million people.
You cannot provide all of them with an academic education. For many jobs technically skilled people are
required. Therefore, we are supporting vocational training which opens employment opportunities for young
07
people in the industrial and service sector.
have the resources to teach the trainees, to participate in

the development of curricula and are willing to bear their
We commenced GPATI originally with 10 companies in share of the cost.
Sindh,and now there are 23 companies altogether. The
Province of Punjab has adapted the system with minor I&M: How are costs of training students in GPATI paid?
modifications, and at
present roughly 40
Dr. TK: Until now,
companies are particiyoung students have
pating in Punjab.The
been paid a sort of
success
of
this
stipend
by
the
program is due to the
company. The most
participation
of
difficult element is:
companies and strong
Who pays the costs
political support from
incurred by the vocathe German Governtional
training
ment as well as the
institute? At present
provincial
governthey are shared by the
ments of Pakistan.
German
Economic
Cooperation and the
At the moment we are planning to up-scale GPATI. More participating companies. The German subsidy will be
training programs will be established. We are also work- gradually phased out over the next five years. By 2018-19,
ing on new disciplines, which cater to the needs of young the costs will be fully borne by the participant compawomen. Right now we offer logistics, supply manage- nies. By this time it should be self-sustainable.
ment and retail programs which are popular among
young ladies. We also intend to include health sector like I&M: To start the project you need infrastructure. How
nursing programs.
did you invest in that?
The pilot project has been accepted and developed very
well, but the program should be emulated by many more
companies and by more vocational training institutes. In
this regard we are also thinking about developing a
franchise model.
Dr. TK: GPATI does not invest in infrastructure. Actually,

we are collaborating with already existing vocational
training institutes which share our ideas and principles.
What we are delivering is software; the hardware comes
from institutes like Amantech or iACT. Other institutes
who like our system can participate in it. Software means
GPATI is part of a large program which GIZ is implement- training of the trainer, development of the curricula,
ing with the help of the German Government, the Norwe- certified exams and teaching material.
gian Government, the Dutch Governmentand the European Union. They are working together. We hope that I&M: Do you have any program in KPK?
the TVET-Reform will be a game changer for the whole of
Pakistan.
Dr. TK: GIZ has a skills training program in KPK. In KPK we
are confronted with a slightly different situation
I&M: Will non-German companies also be welcome to compared to the one in Karachi. In Karachi the driving
join the group?
forces are German Multinational and large Pakistani
companies etc. In KPK there are not many large compaDr. TK: Yes, absolutely in the GPATI program, we do have nies with the capacity to implement the GPATI program.
German multinationals that are participating and So we have established shorter programs which do not
Pakistani companies without any foreign equity. We also offer the same level of qualification as GPATI. But they do
have companies that are non-German. So everyone who teach skills, which improve the employability of the
shares our concept and ideas is welcome. The only quali- young people.
fication we would like is to see that the companies do
have capacity to absorb the program. That means they
08
I&M: Will it be possible to invite students from KPK to
Sindh and Punjab and give them training in these
locations?
Dr. TK: Partially, this has been done by Amantech in
related program. It should also be integrated in the
framework of GPATI but on a later stage. At the moment
we are busy with the implementation of the current
project. After that, we will eventually look for more funding in order to cater to the needs of students from other
provinces.
I&M: Looking back on the last three years of your tenure
in Karachi, what were the motives and objectives of your
work?
Dr. TK: The main objective for creating projects like
German Pakistan Training Initiative (GPATI), German
Pakistan Trade & Investment (GPTI) and German Association for Trade & Economy (GATE-Pakistan) is to further
develop the Pakistan German relationship and bring it to
a higher level. We are always talking about the huge

potential of the German-Pakistani economic relations.
However a potential is only worthwhile if we use it. An
unfulfilled potential is worthless. I think at present we are
on a good path to create a steady flow of new projects,
concepts and ideas.
A Consul General of Many Interest and Talents:
Dr. Tilo Klinner Has Earned Respect and Admiration in Karachi for His Support
for Economic Cooperation, Technical Education, Literature, History, and Archaeology
Karachi Literature Festival 2014
Goethe-Institut and Heritage Foundation
09
I&M Exclusive
History from Newspapers

The headlines of The New York Times published on 3rd October 1990 stated that:
Two Germanys Unite after 45 Years with Jubilation and a Vow of Peace..A Million in Berlin
Berlin, Wednesday, Oct. 3 -- Forty-five years after it was carved up in
defeat and disgrace, Germany was reunited today in a midnight celebration of pealing bells, national hymns and the jubilant blare of good old
German oom-pah-pah.
At the stroke of midnight Tuesday, a copy of the American Liberty Bell, a
gift from the United States at the height of the cold war, tolled from the
Town Hall, and the black, red and gold banner of the Federal Republic of
Germany rose slowly before the Reichstag, the scarred seat of past
German Parliaments. Then the President, Richard von Weizsacker, drawing on the words of the West German Constitution, proclaimed from the
steps of the Reichstag: ''In free self-determination, we want to achieve
the unity in freedom of Germany. We are aware of our responsibility for
these tasks before God and the people. We want to serve peace in the
world in a united Europe.''
Most people know the famous story, beloved of conference speakers
the world over, in which the Chinese premier Zhou Enlai, asked at a
meeting with President Richard Nixon in 1972 about the consequences of the French Revolution, replied that it was too soon to
say. But the story is wrong: the American diplomat who was interpreting for Nixon, Charles W Freeman, says with confidence that the
subject of conversation at that point was clearly the protests in Paris
in May 1968, not July 1789. Less than four years later, it simply was too
soon to say. So Zhou Enlais famous reply was actually quite banal
yet is now universally reinterpreted as a gem of sempiternal Chinese
wisdom.If he had said it, however, it would have been wise. For the
meaning and implications of very large events do take decades and even centuries to unfold
If we look into the history, there is a long story behind the Reunification of Germany. The first question which comes to
mind is: Why was Germany divided? The answer is: The famous Berlin crisis.
Berlin Crisis - How Germany Was Divided, 1945:

In 1945, the Allies decided to split Germany into four zones of occupation. The capital, Berlin, was also split into four
zones. The USSR took huge reparations from its zone in eastern Germany, but Britain, France and America tried to
improve conditions in their zones.
10
In June 1948, Britain, France and America united their zones into a new country, West Germany. On 23 June 1948, they
introduced a new currency, which they said would help trade. The next day, Stalin cut off all rail and road links to West
Berlin - the Berlin Blockade. The west saw this as an attempt to starve Berlin into surrender, so they decided to supply
West Berlin by air. The Berlin Blockade lasted 318 days. During this time, 275,000 planes transported 1.5 million tons of
supplies and a plane landed every three minutes at Berlin's Tempelhof airport.
On 12 May 1949, Stalin abandoned the blockade.
Causes and Results of the Berlin Crisis of 1948:

Important dates and events
Date
Event
January 1947
Britain and the USA join their two zones together into Bi-zonia (two zones).
December 1947
London Conference: America, Britain and France meet to discuss Germany's future. Russia is not
present.
January 1948
Russia starts to stop western literature being sold in the Soviet zone.
March 1948
The USA offers Marshall Aid. Stalin forbids Cominform countries to take part.
April 1948
Russia imposes a partial blockade of west Berlin - Allied transport into the city has to apply for a
permit and is inspected.
1 June 1948
America, Britain and France announce they wanted to create a new country of West Germany.
23 June 1948
America, Britain and France introduce a new currency - this causes economic chaos in the Russian
zone as everyone tries to get rid of their old money and change to the new currency.
The Berlin Wall, 1961:

On August 31, 1962, Time Magazines, Vol. LXXX No. 09 from Berlin, cover story
started as: In flat, open country within the
city's northern boundary, the land to the
west is checkered with brown wheatfields
and lush, green, potato gardens. Eastward
stretches a no-man's land where once fertile
fields lie desolate and deathly still. They
could be in two different worldsand, in a
sense, they are. Even the countryside outside
Berlin is divided into East and West by a
vicious, impenetrable hedge of rusty barbed
wire and concrete. As it snakes southward
toward the partitioned city, it becomes the
Wall.
11
After the Berlin Airlift, the unification of the three zones controlled by the western allies occurred in 1949. This formed the German Federal Republic; better
known as West Germany. Stalin responded by making his eastern controlled
section of Berlin the German Democratic Republic (better known as East
Germany). The difference in lifestyles between the two peoples who lived in
the two new states was clear. East Germans suffered from poor housing, food
shortages, and low wages and with 25% of her industrial output going to the
Soviet Union, East Germany could not see any obvious evidence that the situaWorkers building up a section of the wall in
tion would improve as the 1960's approached.
BernauerStrasse as police from the West

Berlin look on.
Many East Germans simply left and went to West Germany to share in the growing prosperity of that state. The East
German government had tried to stop the flow west in 1952 by building a fortified border. But there remained one place
where any East German could go to and move to the west - Berlin, in the heart of East Germany itself. By 1961, the
number of refugees fleeing to the west represented about one-sixth of East Germany's population.
On August 12th 1961, a record 4,000 people made their way to West Berlin to start a new life in the west. This pushed the
communist authorities into doing something. In the early hours of August 13th 1961, "shock workers" from East Germany
and Russia shut off the border between the Soviet and western sectors of Berlin using barbed wire. The West was taken
by surprise but their protests to the Russians were not listened to. By August 16th, the barbed wire was being removed
and replaced with a wall of concrete blocks. Within days, West Berlin was surrounded by a wall four meters high and 111
kilometers long. The Wall had 300 watch towers manned by selected border guards (the ZOPO) and 50 bunkers. By the
end of August, the Wall seemed all but impossible to cross.
Life behind the wall:

In its September 8, 1961 issue, LIFE magazine wrote that the newly constructed wall, up to 20 feet high and tipped with
cruel glass splinters, is now an all but permanent barrier between the hapless people in both sectors [of divided Berlin] . . .
Communist inhumanity has seldom showed itself more baldly or more brutally than in its Berlin walland the anguish and
indignity it is now working upon the people of Berlin, young and old, East and West.
In a masterfully-planned operation, spanning just 24 hours, the streets of Berlin were torn up, barricades of paving stones
were erected, tanks were gathered at crucial places and subways and local railway services were interrupted, so that
within a day the West of Berlin was completely sealed off from the East. As of that same day inhabitants of East Berlin and
the GDR were no longer allowed to enter the West of the city (including the 60,000 who had been commuters).
Despite the various security measures enforced, escape attempts were commonplace, especially in the years immediately following the erection of the wall, when there was still a fighting chance of making it across alive. Climbing was the
obvious way to go and some 5,000 were said to have reached the other side. However in its thirty year history 100 people
were shot dead, most famously the eighteen year old Peter Fetcher, who, after he was hit in the hip, was left to bleed to
death in no-mans land as the worlds media, watched on. For those unable or unwilling to abscond from the East, life was
bleak; and things only continued to get worse throughout the 70s and 80s as Communism and the USSR began to
collapse.
12
The fall of the Wall, 1989:
From Timothy Garton Ashs eyewitness account of 1989:
It was the other side

of the concrete barrier
that mattered, the side
that people had risked
their lives to climb
over
People on top of the Berlin Wall at Brendenburg Gate, in front of border guards.
On the night of November 09, 1989
9th November 1989----Walls fall was the day of liberation, for those behind the Wall, not the day of unification for those in front
of it.So it was the other side of the roughcast concrete barrier that mattered, the side that people did not spray with aerosol
cans but had risked their livesto climb over. The emotional quality of this liberation can only be captured if you can imagine
what it was like to live behind that anti-fascist protection rampart (its mendacious official name) for all your life, never setting
foot in the western half of your own city, and with the expectation that this would continue for years to come.
11 November 1989, London Herald published an article named Berlin Wall
Tumbles. This is the front page of a newspaper article written only two days
after the Berlin Wall was opened. As the heading states, the fall of the wall was
the beginning of the end of communism. The fall of the wall unified the two
sides of Berlin, which unified two different sides of people who had not seen
each other in over 28 years. This article was used to portray that the opening of
the wall was an extremely impactful because it gave citizens their freedom of
movement again.
The Economist wrote that: As the

first successful liberal revolution in
German history, 1989 ranks in
importance with 1789, says Rainer
Eppelmann, head of a foundation
studying the East German dictatorship. Even better, unlike that French revolution 200 years earlier, the German one was non-violent. Because the Berlin
Wall divided not just a city but also a country, a continent and the world, its Police from both sides stand idly by as the Berlin
Wall is breached for the first time between East and
fall implied a global promise of liberty.
West, at the Sandkrug Bridge crossing-point on
Invalidenstrasse, in November 1989
13
Reunification of Germany, 1990:
The article published in Chicago Tribune on 23rd February 1990: The Dubious Drive toward German Reunification . . .
. . . As The Facts Outrun the Forms wrote: We seek a European Germany, not a German Europe. This was the pledge of West
Germany`s foreign minister, Hans-Dietrich Genscher, at last week`s Ottawa conference of foreign ministers in which the two
Germanies
and
the
governments of the chief
Allied powers of World
War II (France, the United
States, Great Britain and
the Soviet Union) agreed
to discuss soon what was
described as The external
aspects of German unity.
These external aspects
involve primarily conflicting military and economic
commitments by the
Germanies to the Eastern
and Western alliance
networks.
German
officials have made it clear
that reunification itself is
now a foregone conclusion, and nobody else`s
business. None of the
great powers is prepared
to interfere with it. They
will be waiting for
Germany`s further decisions on which of its international commitments it will be prepared to honor, and to whom. The
reassuring noises from the mouths of diplomats are largely meaningless.
Of course fall of the wall was a big moment for West Berliners, and for West Germans altogether, but it was not the day of
unification.German Chancellor Helmut Kohl pushed unification forward and served as the architect of a united Germany.
He promised East Germans blooming landscapes and a new western-style life. The final barrier to reunification fell in July
1990 when Kohl prevailed upon Gorbachev to drop his objections to a unified Germany within the NATO alliance in
return for sizable (West) German financial aid to the Soviet Union. A unification treaty was ratified by the Bundestag and
the Peoples Chamber in September and went into effect on October 3, 1990. The German Democratic Republic joined
the Federal Republic as five additional Lnder, and the two parts of divided Berlin became one Land.
The New York Times reported the address of Mr. Helmut Kohl as:
Mr. Kohl, capping a year of political successes, addressed the nation on television several hours before unity.
''In a few hours a dream will become reality,'' Mr. Kohl said, his eyes turning misty. ''After 40 bitter years of division, Germany, our
fatherland, will be reunited. This is one of the happiest moments of my life. From the many letters and conversations I have had,
I know the great joy also felt by the vast majority of you.''
Many Germans, in fact, had spent the last several weeks complaining of the cost and dislocation of unity. But at the moment of
unity, Mr. Kohl seemed correct in finding that it was a moment to celebrate.
After Reunification:
This must count as success, argues Karl-Heinz Paqu, a former finance minister of the eastern region of Saxony-Anhalt:
The results are better than commonly understood, but worse than expected in the early 1990s.
The achievement of national unification was soon shadowed by a series of difficulties, some due to structural problems
14
in the European economy, others to the costs and consequences of unification itself. Like most of the rest of Europe,
Germany in the 1990s confronted increased global competition, the increasing costs of its elaborate social welfare
system, and stubborn unemployment, especially in its traditional industrial sector. However, it also faced the staggering
added expenses of unifying the east and west. These expenses were all the more unsettling because they were apparently unexpected. Kohl and his advisers had done little to prepare German taxpayers for the costs of unification, in part
because they feared the potential political consequences but also because they were themselves surprised by the
magnitude of the task. The core of the problem was the state of the eastern German economy, which was far worse than
anyone had realized or admitted. Only a handful of eastern firms could compete on the world market; most were
woefully inefficient and also environmentally destructive. As a consequence, the former East German economy
collapsed, hundreds of thousands of easterners faced unemployment, and the east became heavily dependent on
federal subsidies. At the same time, the infrastructureroads, rail lines, telephones, and the likerequired massive
capital investment in order to provide the basis for future economic growth. In short, the promise of immediate prosperity and economic equality, on which the swift and relatively painless process of unification had rested, turned out to be
impossible to fulfill. Unemployment, social dislocation, and disappointment continued to haunt the new Lnder more
than a decade after the fall of the Berlin Wall.
"The Berlin Wall may be gone, but there is an invisible wall here that will take years to remove: the wall separating attitudes
between East and West."
- Peter Fischer, Berlin cab driver, January 02, 1995
24 Years Later, 2014:

German expectations were highest. Now what belongs together will grow together, predicted Willy Brandt, a former
chancellor and mayor of divided Berlin, the day after the wall fell.
On the whole, German reunification has been a success. Much progress has been made in the eastern part of Germany
in the last 24 years. City and towns have been modernized. Most East Germans are better off than they were 24 years ago.
Eastern Germany has become a home to new industries, especially in the fields of biotechnology and renewable energy.
Productivity is about 80% of the West German level, higher than any of the former Communist countries in Eastern
Europe.
Berlin, a divided city for forty years, has won new importance and become the capital of a reunified Germany. Since 1990
the city has been expanding. The Reichstag building has been newly designed and the open Brandenburg Gate has
become the symbol of unity.
However, many problems remain. Income is
still lower than in the western part of Germany.
Workers earn 20% less than their western
colleagues. Unemployment in the eastern
states is almost double the rate of western
Germany. Since 1990 almost 1.5 million Ossis
as the Eastern Germans are called, mostly
higher educated and younger people, have
moved from east to west in search of better
jobs and more opportunities. Such a brain
drain leaves an aging population behind.
15
Many easterners are disappointed because change and a better life have not come fast enough. They long for the good
old days when the state cared for them. Today, most of them are supporters the Left Party, a successor to the Communist
party of eastern Germany. Many East Germans still feel they are not accepted as equal citizens. Although about half the
Germans in the west say life before 1990 was better for them the majority think reunification was a good idea. The price
they had to pay was very high. Since 1991 a 5.5% solidarity tax has been collected from the population. It has generated
almost 200 billion Euros, most of which has gone into improving roads and building new infrastructure.
German reunification has also helped change the face and future of Europe. Without it new countries in the east and
southeast of Europe would not have emerged so quickly. When Eastern Germany became a part of NATO the Warsaw
Pact fell apart. The Euro zone would probably not exist today without a strong Germany.
Twenty Five Years on, The Economist wrote:The fall of the Berlin Wall closed the question of communism. But it
reopened the question of Germany. This articles, published on 8th November 2014 from Berlin, concluding remarks are:
Less clear are the pan-European implications of the walls fall. Unification, which followed less than a year later, raised anew
the old German question in European history, would a united Germany dominate the continent? At the time, Britain and
France feared it would. Today, in the fifth year of the euro crisis, many in the southern euro zone subject to austerity feel it
already does.
Others, notably America, want Germany to do more. Germany is no Switzerland, although some Germans would like to
pretend that it was, says Robert Zoellick, a former American diplomat who helped negotiate reunification. The Germans themselves are as divided as anyone. Most, according to polls, still cling to the post-war eras radical pacifism and diplomatic
restraint. But the elite has grasped that Germany should accept more responsibility. History did not end in 1989. As the crisis in
Ukraine shows, todays Europe needs Germany to lead.
The Fall of the Berlin Wall

Stunning Before and After Pictures on the 25th Anniversary
Four months after construction of the Berlin Wall, U.S.

soldiers sit behind sandbags armed with a bazooka at
Checkpoint Charlie on Friedrichstrasse in West Berlin on
Dec. 4, 1961
Young visitors from Russia pose for a photo with an

actor dressed as a U.S. soldier at the former Checkpoint
Charlie on Feb. 26, 2014, in Berlin.
16
People in West Berlin view a memorial dedicated to East

Germans who died trying to flee East Berlin at the Berlin
Wall on Nov. 1, 1977.
A young man rides a bicycle along the embankment on

the Spree River behind the Reichstag on April 6, 2014.
Visitors watch East German soldiers ceremonially changing the guard on Unter den Linden avenue on Nov. 1,
1977.
A crowd of people, including a young man wearing a

large paper cup as a hat, walk down Unter den Linden
avenue on April 8, 2014
Attention! You are now leaving West Berlin!" the sign

reads outside Brandenburg Gate in 1962
Tourists and tourist buses pass by Brandenburg Gate on

April 3, 2014
17
The human urge for freedom cannot be suppressed forever
- Angela Merkel
just two days later tens of thousands of people gathered in
Leipzig for the Monday demonstration. A line had thus
been crossed. There was no going back. More and more
people showed civic courage. It's thanks to their courage
that the barriers at the border between the two German
states were finally opened.
Federal Chancellor Angela Merkel at the

6th Falling Walls Conference, Nov 08, 2014 -- Berlin
Professor Turner, Professor Mlynek, Professor Eissenhauer,
Excellencies, Ladies and gentlemen,
In contrast to 1953 in East Germany, 1956 in Hungary, 1968

in Czechoslovakia or 1981 in Poland, the longing for
freedom and self-determination could no longer be
crushed; neither in East Germany nor anywhere else. The
human need to be able to take one's destiny into one's
own hands turned the cruel division of Europe and the
Cold War into a thing of the past. Today around 500 million
people from 28 member countries live within the European Union. They live together in peace and freedom.
Others would like to become part of our community. Our
coming together under one roof is the forward-looking
answer to the antagonism of former days.
Thinking over, rethinking, thinking ahead thats what

youve come here to do. The monumental installation by
David Chipperfield, to whom I'd like to extend a very warm
welcome, is a source of inspiration for this. I welcome all of
The lack of communication, the boundless distrust and
you to Berlin, this city which has written history.
and cold confidence in military logic which prevailed one
The Falling Walls Conference brings together the past and hundred years ago when the First World War broke out
the future in a very special way. It combines the have become inconceivable. We are also remembering
commemoration of the fall of the Berlin Wall 25 years ago this event in 2014, as well as the outbreak of the Second
with a look ahead at which frontiers can be overcome World War 75 years ago. Both wars left many millions dead
today and tomorrow. It combines experiences and the both soldiers and civilians. They reduced our continent
hope of a good, indeed a better, life in future a hope to rubble. They left a trail of unspeakable horror. We
fuelled in particular by science and research. The Falling Germans will never forget that it was our country which
Walls Conference thus focuses attention on a key prerequi- broke all the rules of humanity during the National Socialsite and driving force of human action. This was, is and will ist era. Due to the Shoah, that ultimate betrayal of all
civilised values, Germany has an ever-lasting responsibility.
remain freedom.
Tomorrow we will be celebrating the 25th anniversary of
the fall of the Berlin Wall. This day brings home to us that
the human urge for freedom cannot be suppressed
forever. In the course of that fateful year, 1989, more and
more East Germans overcame their fear of state repression
and harassment. They exposed the fraud at the local
elections. They gathered in churches to discuss openly.
They founded civil rights movements and took to the
streets to voice their demands.
On 7 October 1989, the SED grandees celebrated the 40th
anniversary of the GDR with the customary pomp. At the
same time, they ordered the security forces to harass
people who were demonstrating peacefully. Despite this,
After all these horrors, Europe was not yet able to come
together. The Cold War followed. Germany, Europe and the
world were divided into two blocs. The wall which cut
Berlin in two symbolised this. 25 years ago, in the days
leading up to 9 November 1989, the growing protest
movement may have led some to think it was vaguely
possible that the Wall could fall. However, virtually no one
could have imagined that it would only be a matter of
hours. It is certainly possible to see a parallel to science in
this. In this field, too, some things emerge with ill-defined
outlines. But when precisely the breakthrough will happen
and above all what it will look like exactly and what
new possibilities it will offer, sometimes becomes apparent quite unexpectedly.
18
Freedom is a vital prerequisite and engine for this.
Freedom opens up new worlds. Anyone who can think
and research freely can better understand the bigger
picture, can recognise new paths and is free to embark
upon them. Or as the French author Andr Gide said,
One doesn't discover new lands without consenting to
lose sight of the shore for a very long time. Yes, it requires
courage to gain freedom. And it also requires courage to
take advantage of freedom. The Falling Walls Conference
wants to give us courage, the courage to overcome the
walls around current thinking, to cut lanes and open up
new perspectives.
This years Nobel Prize Winner for Chemistry gave us a
wonderful example which shows that what is seemingly
insurmountable can be overcome after all. I would like to
take this opportunity to congratulate Professor Stefan Hell
most warmly on his great success. His research focuses on
nanobiophotonics. Thanks to his pioneering work,
detailed resolutions which used to be considered impossible are now possible in the field of microscopy. Basically,
he made visible what had previously been invisible. And
this has quite literally opened up new and in-depth
insights into living cells. This helps to better understand
the causes of diseases and, ultimately, to devise targeted
treatments.
Health research in particular illustrates very clearly how
the pace of scientific advance can affect the standard of
living. Thats also the reason why great hopes are often
placed in science. To ensure that many of these hopes can
be fulfilled, we have made the promotion of science a
political focus in the health field as well as in many other
spheres. We have devoted greater attention in health care
to previously neglected diseases caused by poverty. For
especially in the field of health research, developed countries like Germany with a strong research record have an
international responsibility. Thats why we made this topic
one of the focuses of our G7 Presidency.
the Lnder to steadily advance science. However, rather

than go into details, I would just like to say that we are
always guided by the idea that only by breaking new
ground, only if we are prepared to leave well-trodden
paths and encourage people to do this, will we be able to
maintain and increase our prosperity.
Ladies and gentlemen, the Falling Walls Conference
undoubtedly also offers an excellent opportunity to showcase Germanys scientific sector. I make no secret of the
fact that wed be delighted if even more top researchers
from abroad were to come to Germany to research. Our
universities and non-university research institutions have
much to offer. We wont content ourselves with cultivating
our reputation as a country which traditionally produces
poets and thinkers. Although were meeting in a museum
today, our intention is not to merely look back. We want to
gain a reputation as a country of pioneering thinkers.
For we know that innovation made in Germany as an
outstanding seal of quality would be inconceivable
without freedom. This also applies to vocational training.
In the former GDR, for example, many were not allowed to
study even though they were talented. A free state, on the
other hand, fosters individual interests and abilities.
When I say that, Im also thinking of ebola, which has hit

many parts of West Africa. German scientists are helping to
find ways and means of halting the spread of this disease.
However, we have to admit that we could probably
already have a vaccine if wed paid enough attention to
this disease before the epidemic took hold.
We welcome lateral thinkers, people who pursue new

avenues. Everyone should have an opportunity, and
everyone should take advantage of this opportunity.
Thats what makes a country humane. And thats what
makes a country enduringly successful. That will remain
the aim and yardstick of forward-looking, forwardthinking policies. In addition, there is a host of initiatives in
Ladies and gentlemen, there is much I could tell you about which people who want to explore new paths, who want
what the Federal Government is doing in cooperation with to overcome barriers, can come together. The Falling Walls
Conference is one of these.
19
Reunification Day Celebration at Consulate General
of Germany in Karachi Friday Oct 03 2014
20
21
22
Congratulations from the Management of

on the auspicious occasion of celebration of the 24thReunication Day
of Federal Republic of Germany
Pakistan is one of Germanys most important partners in this region of the world
H.E. Dr. Cyrill Nunn, Ambassador of the Federal Republic of Germany
Indus Pharma was founded by the visionary Mr. Saeed Ismail in 1969. Since then,
keeping in view the need of injectable, contrary to the prevailing trends of oral
preparation, Indus Pharma continually evolved to meet the needs and expectations
of the healthcare professionals through developing innovative and better therapeutic products to prevent and treat diseases and improve health and
well-being of the people.
Indus Pharma (Pvt.) Ltd

Indus Pharma (Pvt.) Ltd, Plot No.A-26, Karachi Cooperative Housing Society,Union Commercial Area, Block 718,
Shaheed-e-Millat Road, Karachi, Pakistan - Ph. +92-21- 34535253-4, 34544407; Fax: +92-21- 34535255
Germany & Pakistan

A Valuable Relationship
Issue of energy crisis will be resolved soon
PM Nawaz Sharif
Prime Minister of Pakistan, Muhammad Nawaz Sharif visited Berlin on the invitation of the German Chancellor, Angela Merkel
from November 10 to 12, 2014.
During this visit, he addressed the participants of the Germany Pakistan Business Forum organized by the Board of Investment, Government of Pakistan in collaboration with German Association of Trade and Economy (GATE-Pakistan).
We are going to try to open other avenues so that both countries can have closer ties, increase
economic cooperation and have German companies invest in Pakistan,PM Nawaz Sharif
He spoke about the potential for developing intra-regional businesses in Pakistan and invited the German businessmen to
avail themselves of the investment opportunities available in different sectors of Pakistan. Chairman Board of Investment, Dr.
Miftah Ismail gave an overview of the investment opportunities for German Businesses in Pakistan.
We can look at intensifying these (investments), as long as the conditions are right,
German Chancellor Angela Merkel
Two agreements pertaining to the establishment of a Renewable Energy Forum in Pakistan and the setting up of a Special
Economic Zone exclusively dedicated to German Manufacturers and Business Houses were also signed on this occasion. The
Prime Minister was warmly received by the German Chancellor, Angela Merkel on arrival at the German Chancellors Office.
Merkel said Germanys KfW state development bank was already involved in projects in Pakistan including hydro power
plants, but added that the security situation was sometimes a deterrent.PM Nawaz Sharif claimed that the two countries
agreed in principle over numerous projects and deals to improve the countrys economy.Issue of energy crisis will be resolved
soon, he assured.
A smartly turned up contingent of the German Army presented a Guard of Honor and National anthem of both the countries
were played to welcome the Prime Minister, followed by talks between the two leaders over a lunch and both the leaders
addressed the joint press conference after the talks. He visited the German Parliament (Bundestag) and met the President of
the Parliament, Professor Norbert Lammert. Prime Minister also held meetings with the eminent Pakistanis living in Germany
and the office bearers of Pakistan Muslim League, Germany.
25
Germany & Pakistan

The next step will be the Chamber

Qazi Sajid Ali, Chairman, GPti
We have a
transparent finacial
& administrative
system within GPti,
which is a model for
the companies that
are the members of
GPti and a model
for companies that
want to join GPti.
We want to have
German delegates in
Pakistan. Initiative
has been already
taken to have
German delegates.
Once we have them
together with this
infrastructure, the
next step will be the
Chamber.
Since I&M has a long association with PGBF and with many Pakistani
companies, you may know that PGBF is a forum which serves as a link
between German companies on the one hand and Pakistani companies on
the other hand. It has done a marvelous job in creating the right atmosphere where the businessmen of two countries can look into new ventures
and reach new heights. By new heights I mean something which is real and
tangible and with the result that German new investors enter Pakistan. The
contribution of PGBF is worth admiration and appreciation.
The best way to gain the trust and confidence of the German business
community is to establish a German-Pakistan Chamber of Commerce. As
you know, countries where Germans have invested in mega-projects are
the countries where there are chambers like India, Malaysia, Indonesia, etc.
However, Pakistan doesnt have such a chamber. Of course, we have a
forum, and it can do several things, but the trust that they have on their
chamber, cannot be gained from a forum.
What I mean by trust is that the quality and feasibility of projects, speed
and efficiency in implementing the projects, and the dispute resolution
mechanism is enhanced by a Chamber of Commerce. We must not forget
that there is a need for a dispute resolution mechanism between members
or partners who are trading, or have joint ventures, or have a supplierbuyer relationship. In business, disputes may arise, but then there should
26
Germany & Pakistan

be a dispute resolution mechanism. If they feel that the
laws of Pakistan are complicated or time-consuming,
then new German investors may never enter. But once
the German-Pakistan Chamber of Commerce is here,
then they have confidence that all these things will be
handled professionally, fairly and on time. So that is why
at the PGBF, at the consulate, and at the embassy, we all
discussed and decided to make efforts to bring the
German Chamber of Commerce & Industry to Pakistan.
In Germany, as well as any other country, SMEs play a very

important role in the economy and in all sectors. Actually,
these SMEs truly need organizations like GPti, because
large companies have their own structures, information
resources and linkages. Any country will welcome the big
names without creating any hurdles, but SMEs will need
these forums to get information, to create linkages, to get
attention, and to remove hurdles. So we would like to
address SME sector. Although large companies also have
our assistance, we will concentrate more on SMEs. In
We have to have certain eligibility criteria to qualify for Pakistan, no one ever addresses the issues of SMEs. We
that, and one of the important criteria is the right organi- need to attract investment in SMEs. Germanys SMEs
zational and administrative structure. This infrastructure is sector is much larger than Pakistans.
important so that we can prove ourselves worth having
such organization. What does it mean to have the right The Ambassador, Dr. Cyrill Nun, and the Consul General,
structure? It means that the organization which is work- Dr. Tilo Klinner, are actually the brand ambassadors of
ing for them must have qualified staff. So we decided to Pakistan!! They always think about Pakistan and its
have this new organization, GPti, where these bottle- prosperity. So we have such an excellent team here I
necks and these barriers can be removed and we may Pakistan. In the Ministry of Economic Development and
make a structure that is more appropriate and in-line the Ministry of finance in Germany there are highly
with creating a German Chamber. For example, we would supportive people. Hence, we have a very supportive
like to have a CEO or MD who is fulfilling his duties. For German team here in Pakistan, and a very supportive
now, we have a business development director, who is team in Berlin. Why should we not benefit from this
already appointed. He is a highly qualified person with favorable situation? This encouraging background has
extensive knowledge and experience. He is a very led to the formation of GPti. We will try to maximize and
competent person and he has already started working on bring as much as investment and resources from
business development projects.
Germany as possible; whatever share we can bring to
Pakistan. It should be in the form of technology, prodWe have a transparent financial & administrative system ucts, services, knowledge, vocational training, skill develwithin GPti, which is a model for the companies that are opment, human resource development and capacity
the members of GPti and a model for companies that building.
want to join GPti. We want to have German delegates in
Pakistan. Initiative has been already taken to have So this is the overall objective of GPti. What we need to
German delegates. Once we have them together with do here in Pakistan is to create an advocacy platform at
this infrastructure, the next step will be the Chamber.
two levels. Firstly, at the federal government and provincial government levels in Pakistan, this is the level of
We want to have GPti as a true service provider organiza- policy-making in Pakistan. This is where problems arise
tion or service platform. By service platform I mean that in establishing businesses in Pakistan. For example,
it should answer all the questions of potential investors, permission for extension, permission to set-up plant,
to address all those problems that they may have, to work-permit issues, BOD clearance issues. All these
create right linkages and then to have very professionally procedures are sometimes so complicated or timeconducted research according to the sectors. For that we consuming that companies decide to withdraw rather
intend to form the expert groups according to sectors, than proceed with the investment. For this, we have to
like agriculture, automobile, pharmaceuticals, energy, educate the people in government that to attract investlight engineering, etc. We have already started working ment the correct spirit and polite and encouraging
on agriculture. We dont have manufacturing units of attitudes are required. This needs complete professional
German companies here, despite having huge demands. education with focus on goals and objectives. Secondly,
So we intend to attract manufacturing investment here there is a need for advocacy in Germany. This means to
from Germany.
educate and create confidence in the German investors
27
Germany & Pakistan

that the Pakistan is a safe place to do business, that So this is what we have to do. For the practical aspect of
Pakistan has potential for growth of business, and that advocacy in Germany, we will have road shows in differPakistan offers a business friendly environment.
ent locations in Germany to convince them and to attract
them. The initial focus will be on existing investors and
We should not close our eyes. Rather, we should address potential investors. In GPti, I want to create communities
the real issues facing the country and the German of professionals like financial communities, marketing
companies and then we should take corrective measures. and sales communities, quality-compliance communiA company like Siemens is closing its unit in Pakistan. ties, local-compliance communities, etc. In this way, we
This is a question mark for Pakistan. Why? Why they are can join hands to solve not only individual but collective
closing? It is not their global decision. It is a Pakistan issues. We have to generate interest in the big companies
specific decision. We should have a case study on this. We of Germany that Pakistan is a location from where good
should look into the reasons and address them. We ideas come which can help their companies to expand
should create an advocacy platform to influence the and prosper. The thinking has no limits and its not that
headquarters of German companies that they should not we cannot think. I can mention many steps I have taken
take such decisions. I want to make PGBF and GPti into to make BASF a benchmark company. We can think and
forums where they can discuss their issues. GPti has an we can make every company a benchmark company.
objective to do this advocacy at every level - here in These are, in short, some of the ideas we are following in
Pakistan and in Germany.
GPti.
Research Database
One of the prime responsibilities is to create a
database. We will collect and provides reliable
data. And then we will create reference data. We
will put direct links to German data on our website.
So, with one click you can enter into a sea of
knowledge. In sha Allah, in two or three months, I
will finalize the time-frame and we are working on
data and research services.
Financial Support, Consultancy and R&D Expense

The subject of financial support for consultancy
and R&D expenses is important. I will begin by
saying an inspiring verse from Urdu poetry.
..Safar hai shart musafir-nawaaz bahtere
Hazaar-haa shajar-e-saaya-daar raah me hai
You just take a start and you will be surprised by
the support you gain!
So first we have to start. Then we can create
collaborations. We have many organizations in
Germany that are providing financial support for
good business projects. We can gain their help in
areas like procurement, supply chain, research and
development, products, etc. You can see how well
India has done. They have penetrated into German
business organizations. They have entered their
associations and their societies. They have
penetrated in all the sectors. And we in Pakistan,
we have zero penetration. So we have to work in
this area.
Safia Aslam, Assistant Editor, I&M; Prof. S. B. Hassan, Cheif Editor, I&M;
Qazi Sajid Ali, Chairman, GPti; Salman Hassan, VP, I&M
28
Technology Links (Pvt) Ltd.
Congratulates
Federal Republic of Germany

on the Occasion of its
24th Reunification Day
Technology Links (Pvt) Ltd.
Tel: 3273 4260 & 61, Fax: 3273 0728, web: technologylinks.com.pk
Head Oce: 4/11-12, Rimpa Plaza, M.A. Jinnah Road, Karachi-74400, Pakistan
Branches: Lahore, Islamabad, Faisalabad, Peshawar, Quetta, Kabul, Yangon
Germany & Pakistan

Celebrating the Launch of
German Pakistan Trade & Investment
31
Germany & Pakistan

32
Germany & Pakistan

PGBF-GPti-GATE Pakistan
The Trilateral Network
Dr. Cyrill Nunn
A business forum serves the interests

of both sides to promote cooperation
in trade and investment on the basis
of mutual benefits. The flourishing
bilateral business cooperation brings
real benefits to the peoples of both
the countries.
Ambassador,
Federal Republic of Germany to Pakistan
Dr. Tilo Klinner
Consul General
Federal Republic of Germany to Pakistan
As Germany & Pakistan enjoy a longstanding

economic relationship, the Pakistan German Business
Forum (PGBF) was formed on 3 December 1997 to
promote, facilitate and support Industrial and Trade
business relationship between the business communities of Pakistan and Germany under the patronage of
Ambassador, Dr. Cyrill Nunn and the Consul General,
Dr. Tilo Klinner of Federal Republic of Germany. PGBF
aims to encourage, nurture, and promote bilateral
business, mutual understanding, and friendly relationships between the industrial, service and business
communities of Pakistan and Germany and the consequential effects should be beneficial for the entrepreneurs, governments, service providers, and general
public of both the countries. PGBF has also inaugurated its northern branch
in Lahore last year. Mr.
Nadeem Kazmi, Chairman
PGBF said that it helped
raise our profile as a
progressive forum determined to achieve its core
strategic objective to
transform into a bigger
Syed Nadeem Ali Kazmi
body of business activiChairman, Pakistan German Business Forum
ties.
Over the years, PGBF has continued to reshape its
understanding on the future outlook. Its deep seated
desire is to transform itself into a fully functional and
sustainable Pakistan German Chamber of Commerce.
33
To achieve this ultimate goal a special purpose vehicle

named German Pakistan trade & investment (GPti) has
been launched on 28 October 2014, also under the
patronage of Ambassador and the Consul General of
Federal Republic of Germany.
GPti Launched in Karachi
German Pakistan Trade &

investment (GPti), an
organization was created
to work hand in hand with
the Pakistan German
Business Forum (PGBF) to
transform the existing
setup into full fledge
self-sustaining Chamber.
Sajid Ali
PGBF and GPti are the two Qazi
Chairman, German Pakistan Trade & Investment
separate entities working
together towards the same destination. Qazi Sajid Ali,
Germany & Pakistan

Chairman GPti said that a visit by a German delegation
to Pakistan will be organized in 2015 to showcase the
potential of Pakistani firms to prospective German
partners. All multinational companies have tremendous resources. So why not expend them in Pakistan
too! he remarked.
One of the main tasks of GPti is to identify and guide
potential trading partners between two countries. In
this regard, a further organization by the name of GATE
Pakistan (German Association
for Trade
and
Economy)
was
also
launched in Germany in
August 2014. It is headed
by the Honorary Consul of
Pakistan for Bavaria, Dr.
Pantelis Poetis. It is located
in Munich and will
Pantelis Christian Poetis
promote Pakistans poten- Dr.
Honorary Consul of Pakistan for Bavaria, Germany
tial to German companies
in general and to SMEs in particular.
to prove itself as a success story. The idea is simple and

straight, do business. This is Pakistan's opportunity in
the times of economic turmoil, terrorism and political
instability to hold on to something positive for the
future. This will not only help businesses to network,
but half a century old relations between Pakistan and
Germany will also be strengthened.
This network will not only help SMEs of Pakistan to
develop within their boundaries, but also give them an
opportunity of learning Western styles of businesses. A
well thought out awareness program needs to be
floated within the business community of Pakistan for
them to be able to grab this opportunity knocking at
their doors. This will not only help the exporters and
importers of the country, but it also plans to connect
the IT industry of Germany with the fast growing IT
industry of Pakistan and the tech savvy of its people.
The conveners of this network should also add to their
agenda connecting the capital markets on both sides.
Germany has one of the most efficient capital market
structures in the world while Pakistan is still looking to
raise its financial market standards. This will be of great
value for investment projects in Pakistan and will interest investors to bring financial investments. Pakistan
needs to develop regulated financial institutions to
help bring stability in its overall economy.
GATE Pakistan will function as the counterpart of GPti

and PGBF in Germany. Its main objective is the facilitation of business exchanges organizing networking
platforms, events and delegations to Pakistan. The
GATE will act as the conveyor belt for bringing German
investors to Pakistan. It aims at bridging the informa- One of the basic objectives of this network is exchangtion gap, said by Dr. Tilo Klinner, Consul General of ing of delegations which will not only help build a
Federal Republic of Pakistan.
positive image of Pakistan for the investors, but will
also affect the perspective of the normal population of
Germany about Pakistan, certainly targeting the
tourism industry as well. Government of Pakistan
should take this as a guiding strategy to develop same
organizations in other trading economies such as the
US, the UK and the Middle East.
GATE Pakistan Launched in Berlin by German Businessmen
The trilateral network of GATE, GPti and PGBF will lay

the foundation for the future Chamber of Commerce. If
implemented properly, this trilateral network is poised
34
Germany & Pakistan

Pakistan is a country no one can ignore for business
Syed Nadeem Ali Kazmi, President, PGBF
I associated with PGBF as director on the board since

2007. It is an honor to be the President of this Institution now. We are now reaching a tipping point to
realize our long term objective of converting this
institution into something more valuable for Pakistani
Business Community, i.e. becoming bilateral Pakistan
German Chamber of Commerce in next couple of years
or so. PGBF boosts a wide range of membership base
now coming from all over Pakistan having two self
sustaining office premises in Karachi and Lahore. This
year, we have been able to double our income and
reserves by organizing various events both in
Germany and in Pakistan.
During the last two years, our patron Dr. Tilo Klinner
has lead us to understand the basic requirements
expectations from various Chambers in Germany. It is
during this time, that the board along with the support
of members, we have come a long way towards this
goal. It would not have been possible to give such an
impetus without an untiring assistance from our organizations have been incorporated. One is GPTI
patron.
(German Pakistan Trade & Investment) under the same
patronage and one in Munich GATE - Pakistan (German
We have already organized one business delegation to Association Trade & Economy) Pakistan under the leadGermany last year and we now are planning for one ership of Honorary Consul General of Pakistan in
coming from Germany to Pakistan. A lot of activity is Bavaria Dr. Poetis.
going on and lot more is planned to speed up the The big German companies are already well estabprocess. In order to fill certain requirement gaps, two lished in Pakistan for a very long time. The idea is to
promote Pakistans potential to SMEs and enhance
trade and investment between the two countries.
Some of these SMEs are working indirectly via other
regional hubs in Asia.
We know that Pakistan is a country no one can ignore
for business, and we feel that it is our responsibility
through our Forum to keep taking steps in the direction which promote Pakistan and help organize information for the inquiries that we receive from Germany
quite frequently on business matters.
The formation of Bilateral Chamber will mean that the
trade and investment will be a two way affair between
Germany and Pakistan.
35
Germany & Pakistan

Assessment of German-Pakistani
Relations in Trade, Investment
and Strategic Cooperation
Excerpt from the discussion paper by Talat Mahmood
German-Pakistani relations
In German foreign policy regarding South Asia, a differentiated approach can be identified, especially when comparing German policies towards Pakistan with those to other
countries. The differentiation on the policy side is reflected
in the heterogeneity of the South Asian region: It is home to
hundreds of millions people of different ethnicities and
religions, unequal economic conditions and soaring
inequalities between rich and poor. Although the countries
of this sub-continent have developed a multilateral regional
organization, the SAARC (South Asian Association for
Regional Cooperation), the prospect of forging a sustainable
political cooperation is still very remote at this stage. The
following sections, examining German-Pakistani trade,
business and strategic relations, will thus also highlight
some differences to bilateral relations of Germany to other
countries in the region, to depict this differentiated
approach (for example the differentiation among policies
towards Pakistan and India).
Historically, Germany and Pakistan have shared a longstanding and amicable, though unenthusiastic relationship.
In response to Pakistans acute, complex and urgent security
challenges, Germany has intensified its engagement with
Pakistan over the past years in the areas of security and
stability, building capacity and improving democratic
governance, while India is met with policies that focus to a
larger degree on economic cooperation. It is assessed as a
promising location for investment, where already approximately 800 German companies have formed subsidiaries
and joint ventures in different production areas (Matter and
Helbig 2009). The country is considered to be a reliable and
successful partner in bilateral trading. Germany considers
India, the worlds largest democracy, which has a secular
structure and an enormous ethnic, linguistic and religious
diversity, a country with
extreme social disparities and appreciates Indian advances
in the democratic system and the quality of its rule of law
(German Federal Foreign Office 2002). German policy has
aimed to further strengthen these governance matters
through political dialogue and by using the instruments of
development cooperation and political foundations.
Economically, the Indian market is the third largest
economy in Asia, with the increasing purchasing power of
the growing middle class and hence growth potential for
German businesses.
37
By comparison, the German-Pakistani dialogue has focused

more on prioritizing the establishment of human rights
programmes and the consolidation of existing democratic
structures. In previous decades, the Pakistani state established itself around security issues rather than focusing on
economic and social development. Since independence of
Pakistan, democracy has not been able to develop strong
roots. Previous democratic developments were hindered by
at least four times through various coups by the military,
which has also been unable to deliver in terms
of good governance. The administrations lack of clear
development-oriented policies has further discredited
democracy in the eyes of large section of the population.
Trade and investment
In the context of international and EU trade, we now analyse

the German-Pakistani trade relations. The bilateral trade
statistics between the two countries (Table 1) reveal that the
total trade volume of the previous 10 years has almost
consistently increased, from 1.2 billion US$ in 2003 to 2.3
billion US$ in 2008, decreased slightly from 2009 until 2010
to a value of 1.9 billion US$, but rose again in 2011 to 2.3
billion US$ and finally decreased slightly in 2012 to 2.1
billion US$. The average trade volume of the previous ten
years reaches just under 1.9 billion US$, which appears to be
very moderate and leaves room for further expansion.
In most years (except 2003 and 2011) of this reported timespan, Germany showed a trade balance in its favour. In 2011
a significant improvement of the trade balance in Pakistans
favour can be observed: Germany imported Pakistani goods
amounting to over 1.3 billion US$, indicating a surplus of
31.3%, and exported a value of 1.0 billion US$ with a
decrease of 1.5%. This led to a trade balance surplus increase
after six years of deficits for Pakistan, to 312 million US$ in
2011. However, in 2012 Pakistani export decreased and
caused another negative trade balance.
Germany & Pakistan

Germanys exports to Pakistan are mostly comprised of
machinery, chemicals and electrical products, while
Pakistani exports overwhelmingly textiles and garments
(over 80.0%) to Germany.
Pakistan-German Chamber of Commerce and Industry,

which is urgently needed, the AHKs (German Chamber of
Commerce Network) are supported by the Federal Ministry
of Economics and Technology on the basis of a resolution by
the German Bundestag. The red line in Table 4 shows the
Comparing these German-Pakistani trade volumes with interconnection of decision making and lobbying activities.
those of Germany and India, the Indian trade volume in
2009 reached roughly 17.6 billion US$ and rose to 23.6 All advisory and supervising services for market entry for
billion US$ in 2012. A great deal of the profound growth in German business interests in India are conducted by a
German-Indian trade can partly be accredited to the strong liaison office in Dsseldorf. The Chambers offices in India
presence of trade policy groups within national institutions. take the responsibility of providing other services such as
Especially, the role of the joint German-Indian Chamber of searching partners, preparing individual market studies,
Commerce, which has promoted bilateral economic and offering assistance in establishing new companies, conductbusiness relations since 1956, cannot be discounted. With ing personal recruitment and finally, organizing events and
more than 6,700 German and Indian companies among its delegation visits. Roughly 1,800 small and medium-sized
members in 2014, it is the largest chamber of commerce in German companies (SMEs) are engaged in India, signifying
India.
an increasing diversification of bilateral business (Wagner
2011a). In Pakistan, however, such a structure does not exist,
Pakistan, by contrast, has no dedicated and clearly-defined resulting into fewer German SMEs doing business in Islamapolicy infrastructure within Germany and its regional bad, Karachi or Lahore.
status is often relegated. In some cases it is classified among
Middle Eastern states (within Near and Middle-East In 2014 the Generalized System of Preferences Plus (GSP+)
regional initiatives), or it is grouped among South Asian took effect after it had been granted to Pakistan (among
states. Pakistan drifts between these two very different others) by the EU parliament on December 12, 2013.
regional groupings within German institutions, resulting in Throughout the process, Germany has fully supported and
a lack of focus where
backed the bid for the
policy-making
is
EUs GSP+ status. The
executed.
status offers important
Table
2
reveals
opportunities for further
Pakistans placement
expansion of Pakistans
among
Germanys
trade with the EU. Given
political and commerthe natural resource
cial
institutional
base, manpower and
infrastructure. In the
entrepreneurial
skills
German Bundestag,
and the size of the
Pakistan is placed in
European import market
the South- Asian
(2011 imports from
Parliamentary Group,
extra-EU 27 were US$
whereas within the
1.54 trillion), Pakistans
BDI (Federation of
current export to the EU
German Industry), the
does not reflect its
DIHK (The Association
potential volume. The
of German Chambers
performance gap rises
of Commerce and Industry), the states two largest business from various domestic inconsistencies, one of which is the
associations, and within GTAI (Germany Trade and Invest), it inability to diversify the countrys basket of export
is placed in the Regional Initiative of Near and Middle East commodities. As a result, Pakistans exports to the EU are
Countries. A more uniform and clearer approach on classify- observed to be supplydriven rather than demand driven.
ing Pakistan as a South-Asian nation, or within a Near and Except for goods covered by knitted and woven apparel, the
Middle East regional initiative, would enable a more serious top six categories that constitute almost 90% of Pakistans
commitment to further German-Pakistani relations. For the exports to the EU, do not find a place in the top 45 EU import
formation of a joint
categories. This mismatch extends also to GSP exports,
38
Germany & Pakistan

where only three of Pakistans top 20 exports to the EU find substantive eligibility criteria, Sri Lanka was withdrawn the
a place in the EUs top 10 GSP imports, against eight from GSP+ status, based on findings of an exhaustive EU investiIndia and six from Sri Lanka (TRTA II 2013).
gation. These reports identified shortcomings in respect of
Sri Lanka's implementation of three UN human rights
Pakistans main characteristics of exports to EU are such that conventions.
88% of exports fall within two commodity categories,
textiles and leather, a feature that has not changed for a However, an analysis of the years, in which the GSP+ status
decade and led to the GSP+ vulnerability in product diver- was active in Sri Lanka, shows how the preference system
sification. Further, 80% of Pakistans exports are directed to has favored Sri Lankan export to the EU. Export rose by large
seven countries Germany, UK, Italy, Belgium, The Nether- margins after 2005. Especially the textile and clothing prodlands, Spain and France and 6% to other five (Portugal, uct group increased significantly during those years. Even
Poland, Denmark, Sweden and Finland). Pakistans exports after the cancellation of GSP+, the export size did not
to the remaining 15 EU member states comprises only 14%. decrease, but increased lightly.
Pakistani exports have not fully penetrated geographically
into the EU.
Bangladesh can be taken as another successful example of
tariff reduction. However, its experience with reduced tariffs
However, because of GSP+, Pakistan may see significantly to the EU dates back to 1971. Currently,
increased investments in the textile industry, originating Bangladesh continues to get duty- and quota-free access for
from inside the country as well as outside the country. Many all its products except for arms and ammunition for an
expect Chinese businesses to be among those that will use indefinite period under the Everything But Arms initiative
the improved tariff conditions with the EU, to invest in the of the EU. Trough trade liberalization and export promotion
Pakistani market. There have been some reports from indus- since the 1990s, Bangladesh has risen to be a major player in
try representatives that Chinese investors are pursuing joint the global textile industry in the last years. Exports
ventures in their investment efforts and that they have increased significantly and were responsible for a steep
already made first purchases in late 2013. Additionally, increase of the GDP as well. Bangladesh was also successful
Pakistani state governments seem to have begun the
in decreasing the share of primary commodities exported
preparation of investment packages tailored for Chinese and it raised the share of manufactured goods in that time.
and other global investors.
However, economists have pointed out that Bangladeshs
One should be careful to be overly euphoric of the GSP+ export base remains narrow as the impressive success in
status. It should be perceived as only one part of a possible garment exports has yet to be replicated in other industries.
solution of Pakistani economic problems. The GSP+ status An important part of these export increases was the
has been called a remedy to almost all Pakistani problems, German-Bangladesh bilateral trade, which has risen to over
including unemployment, foreign exchange reserves, 4 billion US$ and is weighed heavily in Bangladeshs favor
currency stability and even law and order questions, while in with 3.4 billion US$ exports to Germany (with over 90
economic literature the effect of Generalized Systems of percent being Ready-Made-Garments). Naturally, there
Preferences on developing countries is not unanimously have been some attempts to prevent GSP+ status for
decided upon. Some empirical analyses suggest that GSP Pakistan, to not jeopardize that position and these market
schemes tend to raise the developing countrys exports advantages.
significantly in the short run, but cannot confirm similar
findings for later phases in the process (Herz and Wagner Looking back, the tariff advantages for other countries
2011). In contrast, other models confirm the overall signifi- already granted an EU GSP status have put Pakistan in a
cance of a positive effect on developing countries econo- difficult position in previous years. In the textile and clothmies, but also make differentiations among countries due to ing products, Pakistans main competitors in the EU market
their specific economic predicaments (Sapir 1981). In any are India, Bangladesh, China and Turkey. Apart from India,
case, Pakistan should focus to not forget the aim of sustain- the other three countries rank among Pakistans top 10
able economic development instead of short-term winnings export destinations, creating an anomalous situation where
in the respective product lines.
Pakistan supplies textile raw materials (yarn and fabrics) to
Sri Lanka enjoyed the GSP+ benefit from July 2005 to countries whose finished textiles and clothing products
August 2010. Because the EUs tariff preferences depend on enjoy duty free advantage in Pakistans main export market.
the beneficiary countries' willingness to respect the
39
Germany & Pakistan

Pakistan (Table 4) does not show any significant pattern; its
total volume remains continually low when compared to
other countries. The second lowest German investment of
about 7 million US$ is in fiscal year 2003-04, directly after the
start of the War against Terror. Afterwards the investments
increased in the mid-2000s to 78.9 million US$ in 2006-2007,
after failing reforms and an increasingly instable investment
environment. The investment figure declines again to an
eight-year low in 2012-13, to a volume of 5 million US$.
Table 3 shows the aggregated values of FDI in Pakistan,

between 2003-04 and 2012- 13. The largest foreign direct
investment stems from the United States. The second
largest aggregated investment is performed by the United
Arab Emirates, followed by the United Kingdom and China.
Switzerland and Japan are the 5th and 6th largest investors,
respectively. Germany takes the last position of the seven
largest investors.
According to the Pakistan Board of Investment, the most
attractive sectors for foreign investment during the previous
ten years have been the oil and gas industry, followed by the
financial sector, power generation and transport. The
highest level of foreign investment was during 2005-06 and
2007-08 in the IT and telecom sectors. The highest single
investment figure was achieved in the year 2007-08 for
financial services. According to the recent Economic Survey,
total investment has declined from 22.1% of GDP in 2007-08
to 12.5% of GDP in 2011-12. In India, the top sectors attracting FDI inflows from April 2010 were the service sector
(19%), chemicals-other than fertilizers (14%), trading (8%)
electrical equipment (8%) and the automobile industry (7%).
As compared to other countries, German FDI investment in
40
The large German multinationals that have been present in

Pakistan since its independence are still in operation,
however, during the last few years a number of new companies have opened their businesses. The average German
business investment volume of the previous 10 years is only
33 million US$, which shows little interest of German
companies in Pakistans promising but difficult market. The
average volume German investment of the previous ten
years in India amounts to 272 million US$, which is a much
higher value and reflects the interest of German companies
in India. If we examine the FDI inflows from Germany to
India, we observe that the FDI volume increased from 123
million US$ in year 2000-2001 to 199 million US$ in year
2010-2011. The highest FDI inflows were in the years 2008-9
and 2009- 10 amounting to 629 million US$ and 626 million
US$ respectively (Indo-German Chamber of Commerce
2012).
The volume of German FDI in the last decade shows that
there has been low interest on part of German companies to
invest in Pakistan. The decline in investment might also be
caused by a deterioration of Pakistans image as an investment destination since being involved in the security issues
connected to the War against Terror. Since the onset of the
post-Musharraf era, this impression might have persisted.
Moreover, there is a lack of institutional infrastructure
conducive for bilateral trade and investment. Simultaneously, Pakistani direct investments in Germany are nonexistent. Pakistani companies should start thinking of penetrating into the German, as well as European markets, as these
offer excellent and modern infrastructure, a highlyeducated workforce and, especially, attractive subsidies
from the government. It is a positive development that over
500 Pakistani companies have actively participated in 16
different exhibitions and several of the worlds biggest trade
fairs held in Germany in 2011, supporting the Pakistani
export sector. Also, an increasing number of business representatives from Germany travelled to Pakistan in 2010 as
compared to 2009. This increase in business visitors can help
to promote economic relations between the two countries.
Several treaties and agreements, for example for avoiding
Germany & Pakistan

double-taxation, securing investment, and an agreement machinery sector. The second largest product group is
on social security,
chemical, medicine and
further
strengthen
pharmaceuticals. In this
the economic and
sector 132 German
business ties between
companies are reprethe two countries and
sented by 50 Pakistani
reduce
possible
agents. The third largest
obstructions
to
group is manufacturing,
investments
from
electronics, steel, iron,
both sides.
metal products and
consumer goods. Cars
Business cooperaand technical equiption & partnerships
ment constitute the
In Pakistan, German
fourth largest sector, in
businesses are reprewhich on average one
sented on the one
Pakistani agent reprehand by multinationsents at least two
alcorporations, who
German companies. The
are mainly located in
service sector consists
Karachi and Lahore,
of banks, insurance,
and on the other
consultancy, shipping
hand by Pakistani
and freight & cargo
trading agents who
sector. In this fifth
represent the majorlargest sector, the ratio
ity of the German companies in the areas of machinery, of representation is almost one to one. The last and sixth
chemical and pharmaceuticals, instruments, automotive, sector constitutes the scientific, optic, and precision instruand related equipment and services.
ment sectors. In this sector, 10 agents represent
13 German companies.
Our calculations show that roughly 35 German multinationals are engaged in Pakistan (Mahmood 2012). The majority All of these multinationals and a majority of their Pakistani
have their production plants and offices in the metropolitan business agents are members of the Pakistani German
city of Karachi and at least another 5 companies have Business Forum, also with its head office in Karachi. The
merged with other multinationals being headquartered in PGBF provides services relating to the bilateral-trade and
the port city. Another 5 German companies are located in investment activities of the chamber of commerce in the
Lahore and one in Quetta. Of all the multinational compa- Karachi area as well as with an office in Lahore and the cities
nies present in Pakistan, 55% of them are from the pharma- of Sialkot, Faisalabad and Islamabad/Rawalpindi with its
ceutical and chemical industries. The second largest sector Northern Chapter, which has recently been inaugurated.
turns out to be the electronics industry with a share of
around 20%. The services sector (15%) is followed by the The PGBF is in a process of transforming itself into a
transport sector and textiles machinery with 5% each.
Pakistan-German chamber of commerce and industry
(PGCCI) and is therefore an urgent requisite to furthe
Table 5 shows the representation and the business activities facilitate bilateral trade and investment. This initiative has
of German companies engaged in Pakistan, differing from been extensively supported by the representatives of the
German SMEs activities in India. The business activities of two countries. In December 2013, the PGBF and the Federal
altogether 565 German small and medium-sized companies German Chamber of Commerce (DIHK) jointly organized the
are represented by 231 Pakistani agents. Comprised of conference Pakistan Business Days in Berlin and Munich.
electric and textile machinery, 221 German companies are These two successful events could attract around three
represented by 71 agents - indicating that one Pakistani hundred participants including the German Foreign Federal
agent usually represents more than one company. The Minister and the Pakistani Chief Minister of Punjab along
composition of the sectoral distribution reveals that the with high officials and members of the business communilargest sector represented by the agents in Pakistan is the ties from both countries in Berlin and similarly 200 partici-
41
Germany & Pakistan

pants including high officials in Munich. As a result, these
events have certainly created awareness between the
business communities of the two countries for the promotion of bilateral trade and investment opportunities. Adding
to the efforts of the PGBF, the economic departments of the
German Embassy in Islamabad and the Consulate General in
Karachi represent the interests of the business community
of both countries.
In December of 2009 a German-Pakistani bilateral treaty, the
Agreement on the Encouragement and Reciprocal Protection of Investments replaced the Bilateral Investment
Treaty of 1959, the latter being the first and oldest international treaty of its kind. However, because of EU regulations,
this treaty has not yet become operational. It is believed that
the new treaty could create further incentives for investment in Pakistan and can thereby play a strategic role in the
growth and development of the economy. The German
Federal Government in August 2009 dealt with the issue of
financial investments and granted a decision for a single
case guarantee cover for the invested equity capital, but the
return coverage was not applied and considered. For its
decision-making, the Government evaluates the investment
initiative by the project type, the branch of the company
and the type of the capital investment. This type of German
engagement should certainly encourage the German
business community to expand its investment relations with
Pakistan.
Pakistans concentration of doing business with the international community should not only be centred only on the
promotion of trade with Germany and other countries, but
should also analyse the success stories of its neighbour
India. How did the Indian economy manage to get access to
the German and European markets under fair and open
competitive market conditions?
Until today more than 240 Indian companies are operating
in Germany (especially clustered in Hessen, Bavaria, North
Rhine Westphalia and Baden-Wrttemberg) and many more
vice versa. Initially, Indian companies entered into the
German market through corporate buyouts and acquired a
number of companies for instance, the textile company
Trevira, the pharmaceutical company Betapharm and the
forging company Peddinghaus. Recently, an Indian-UAE-led
investment company Microsol acquired a larger share of an
insolvent Berlin solar company. Not only did Indian companies enter the German market through corporate buyouts,
but they established a presence through building their own
subsidiaries and acquisitions and continue to do so: A recent
study shows that the number of subsidiaries of Indian firms
in Germany increased from 195 in August 2011 to 204 in
42
May 2012. According to KPMGs Emerging Markets International Acquisition Tracker, published in April 2012, covering
the period between 2005 and 2011, India was one of the key
sources of investments/acquisitions in Germany and topped
the list of all emerging market nations in terms of the
number of transactions in Germany. Of 176 acquisitions in
Germany, the majority were created by Indian parent
companies (23%), followed by companies from Russia
(22%), Central and Eastern Europe (18%), South and East
Asia (12%) and finally by Middle East and North Africa (12%).
Most of the Indian investment goes to the IT business sector
in Germany (35%). However, the FDI to Germany is increasingly diversifying and investment in sectors like the automotive industry (Tiwari 2012).
The importance of the software industry in bilateral
German-Indian business relations goes both ways: Of all
companies, around 70 percent belong to the Information
Technology sector. The German magazine Der Spiegel, has
called India the most attractive destination for offshore
development by German software companies. Other important sectors for Indian companies present in Germany are
financial services, textiles, mechanical engineering, pharmaceuticals, and automobile subcontractors. All of these developments show that in the medium term, through successful
diversification, Indian exports could increase. Indian multinationals and managers are taken seriously as winners in
global competition.
Contrary to the German business activities in Pakistan, in
German markets, Pakistan business presence is
non-existent. However, during the past years, over 500
companies from Pakistan were represented in several
worlds biggest trade fairs and participated in 16 different
exhibitions which may have helped the export sector.
Pakistans lack of internationalization and economic diversification of its private businesses as well as a permanent
trade deficit pose problems, but at the same time offer
opportunities of expanding businesses overseas to generate surplus revenues through expansion. Investing overseas
provides a direct entry into these markets through investment and forming joint ventures, broadening existing
clientele and using the local work-force. Most emerging
economies are in the process of successfully globalizing
their businesses and pursuing surplus capital. Pakistan can
also achieve much required economic stability, if it begins to
provide a more liberalized outward FDI policy for the private
sector, which would certainly encourage businesses to
access European and international markets. India can serve
as a successful model of internationalizing SMEs and establishing access points to the German market.
Business Interviews
We cannot compromise quality
Ms. Andrea Cornelissen
CFO, Bayer Pakistan
I&M: Will you kindly express your impressions about
Pakistan; when you are assigned to take up a position in
the corporate sector of Pakistan?
Ms. Andrea:I worked close to 30 years for Bayer now. This
is not the first time I am in a corporate sector, but its a first
time I am in Pakistan. When I was informed that I had to
go to Pakistan, the comments from my colleagues were
not so good. But then I came to Pakistan and I had a
chance to visit northern areas of this country. It gave me
an opportunity to see the beauty of Pakistan and my
feelings changed immediately.
I remember, Mr. Bienertintroduced me to Mr. Gohar, who
is a typical bearded man, but he was so nice, friendly, very
open minded person that I felt quite easy to get along
with him.
Ms. Andrea:If you look at Pakistan overall, the multinationals here, have not attained such ranks. If you compare
that with India, it has for sure higher ranking; nevertheless Pakistan has a good potential but the market has to
be there. So much improvement and development needs
to be done first. A lot of ground work is needed. When I
came here two years back, there were so many things to
do, to get recognition. We have just started so it will take
a while. We are expecting 11 foreign visitors coming to
I was given the impression that law and order situation in Pakistan for reviewing ongoing projects in Nov-Dec 2014.
Pakistan, particularly in Karachi was disturbing. But
having lived here, I am used to it; as business and normal I&M: Do you face problems in the enlargement of prodlife and social activities continue smoothly and peace- ucts, services, etc.?
fully. I have a home office at my residence and whenever
the security officer feels that I should not come to the Ms. Andrea: It is difficult in the pharmaceutical industry
office, I work from there. Its like that; you have to accept with the continuing pricecontrolledissues. Of course
it. We have cities which have huge crime rates like Brazil, globally Bayer has introduced many products. We also
Venezuela, etc., but if you choose to work you dont have many new products in the pipeline here. I have
always have easy cities. Its not chocolate all the time.
noted the complexity of taxes and regulations that we
I found nothing different in urban cities. Like in Germany,
you have different cities in Pakistan. Lahore is a modern
city. You have a well planned capital city of Islamabad.
Karachi is a metropolitan city and truly this mega city is
the financial and industrial capital of Pakistan. Traffic in
Karachi is nothing compared to Brazil or Shanghai or
other metropolitan cities of the world.
have to face. As a multinational company, we already

I&M: Briefly trace the growth and expansion of Bayer in have lots of internal regulations. If it's possible to remove
Pakistan? Where does the Pakistan unit stand in the the complexities in external regulations; it will make
ranking of Bayer units in Germany as well as in other parts business overall much easier.
of the world?
44
Business Interviews
I&M: How many times you have to travel to Lahore?
Ms. Andrea: Twice a year. I have to travel a lot outside
Pakistan. We have an office in India and headquarter in
Germany. I have to do lots of external travel, so I avoid
internal travel as much as I can. But we connect with our
Lahore office all the time through telecommunication
and internet.
I&M: Tell me something about quality assurance. How do
you ensure it in face of Price-issue?
Ms. Andrea: We cannot compromise quality. Bayer has
I&M: What is your level of coordination with Pharma some standards; we will discontinue manufacturing, if we
cannot ensure quality. Bayer has done this in the past.
Bureau and PPMA?
Ms. Andrea: We are the member of Pharma Bureau. We I&M: From where youre raw material requirements are
fulfilled?
always coordinate with them.
We are not the member of PPMA but we have a close
Ms. Andrea: Lots of basic material comes from Germany.
alliance with them.
As we have the production in many countries, different
I feel that companies are not open on such forums. I raw material comes from other regions too.
realized that they are reluctant to share their problems. I
think they should be more open. Pharma companies I&M: We understand you have a problem with availability
should bring the problems on the table and create a for Pharmacist from local resources. Do you take advancollective lobby strongly. Most of the problems are same, tage from institutions like Department of Pharmacy,
but everyone wants to deal with regulators all alone. University of Karachi, to have service of pharmacists?
They dont want to make a team.
I&M: What is the ratio of your imported drugs and local Ms. Andrea: Yes, we have employed pharmacist from the
University of Karachi. The trend that is seen in the last few
manufacturing?
years was that more doctors are coming towards this
Ms. Andrea: I dont know exactly the ratio, but we have field. We have doctors in medical department and health
lots of products manufactured locally and many are care. Within our marketing team, we have four doctors.
Dr. Imran, the CDH of Healthcare Pakistanhimself is MBBS
imported.
It is really a difficult question because we are in a doctor, so actually doctors are coming more into pharmare-structuring phase, so maybe in few coming months, ceutical industry than pharmacist.
we will be more aware about the scenario.
I&M: What is the capacity utilization of Bayer manufacturing plants; in Karachi and Lahore?
Ms. Andrea: I think we are using the full capacity in both
plants that is in Karachi and in Lahore.
I&M: Do you have different manufacturing products in
Karachi and Lahore?
Ms. Andrea: Yes! Its different.
45
Ms. Andrea with Prof. S. B. Hassan, Chief Editor I&M &

Safia Aslam, Assistan Editor I&M
Business Interviews
We devise customized solutions that
no other financial institution can do.
Mr. Qaseem Jari
Country Head, DS Concept
I&M: What is represented by the letters DS in your

Companys name?
DS-Concept
has tried to
provide the
maximum
level of
satisfaction to
the customers
and that is the
only reason
that we have
a success
story in a
short span
eight years of
establishment
in Pakistan
Mr. Jaffri: The letters DS are the initials of the name of the
founder DS-Concept, his name is Dieter Spiekermann.
Dr. Dieter Spiekermann developed this concept along
with his partner Mr. Ansgar Huetten.
At the time of launching DS-Concept in Germany
Dr. Dieter Spiekermann had an experience of 20 years in
the field of trade financing in European markets, whereas
the concept is complemented by the partnership of Mr.
Ansgar Huetten who was an attorney by profession.
I&M: How the DS-Concept German Office selected you for
opening the Pakistan Office?
Mr. Jaffri: Both the founders of the DS- Concept were
looking for a suitable person in Pakistan who could
establish the organization in Pakistan, so in this regard
they have tried to search via their customers from
Germany who were engaged in business with Pakistan.
Those German customers of DS-Concept spread the idea
amongst their contacts in Pakistan and eventually I was
informed by one of my friend in textile industry, I did the
market research on the project and its feasibility of
launching the concept in Pakistan.
After receiving my synopsis Dr. Spiekermann and Mr.
Ansgar Huetten decided to choose me to launch and
establish the organization in Pakistan.
I&M: What was your professional experience at the time
of launching DS-Concept in Pakistan?
Mr. Jaffri: I had an ample experience of business development and training management.Since I have worked for
pharmaceutical industry and managed different portfolios that are sales, marketing and training development. I
worked for pharma industry, hotel industry, and at the
same time I was a trainer and as a talented trainer I
conducted professional training at NIPA, SESSI, PIA and
many other private and public sector organization.
Although I was not a finance professional but I had a
greater vision of establishing a business so I worked hard

and took it as a challenge and prayed to al-mighty god
for success.
I&M: Briefly Trace the Growth and Expansion of
DS-Concept?
Mr. Jaffri: Growth is measured in terms of the achievement of organizations objective and also the objective
which one sets for himself. During the first 2 years our
objectives were to create the awareness of the services of
DS-Concept and its benefits to the exporter of Pakistan.
Then we were looking for the growth of business
volumes every year.
We are proud of our team in Pakistan and the support of
our principle office that we have been able to provide a
level of service to our customer that is derived by
them.Now approx. most of the exporters who are major
players, medium sized companies and small companies
are aware of the presence of ds-concept in Pakistan.
We have grown from the scratch in 2006, till now we have
46
Business Interviews
tried to provide the maximum level of satisfaction to the
customers and that is the only reason that we have a
success story in a short span eight years of establishment
in Pakistan.
I&M: What is the special effort you make to gain customer
loyalty?
our customers in all the major exporting cities of Pakistan

e.g. Karachi, Lahore, Sialkot and Faisalabad. Our customers are from different areas of trade for e.g. textiles,
leather industry, fruits and vegetables, food products
exporters and suppliers. The customers of DS-Concept
have also become a reference and are recommending
other exporters to patronize DS-Concept.
Similarly the buyers around the world who are getting
suppliers from PK exporters are also recommending
other suppliers to get the trade finance facility from
DS-Concept. We believe that there is indication of
continuous success in future also. Due to the fact that
there is a paradigm shift which is continuously taking
place amongst the international buyers.
Now a days the buyers are working for credit terms, so
much so that the buyer have started demanding landed
duty paid LDP from their suppliers. So in this situation we
see a vital role of DS-Concept to facilitate the exporters
and buyers.
I&M: From your experience, what is the secret to success
in the trade finance sector?
Mr. Jaffri: In the service sector the critical success factor is
the customers experience of your services. Particularly
the customers of financial services are very sensitive so
you have to thoroughly identify their needs and carefully
anticipate the operations for their transactions, if you do
so, you will be able to induce satisfaction of your services
in your customers. Your transactions with your customers
should be very transparent and there should be no
hidden charges.
Majority of the customers seeking trade finance facilities
are measuring your services in terms of time span in what
you complete their transaction and economical charges
as well as the security of receivables. DS-Concept has
Mr. Jaffri: As mentioned earlier that we focus on the real

needs of our customers and we devise customized
solutions that no other financial institution can do.
Since the services of DS-Concept enables the exporters
to offer credit to their suppliers and we secure their
receivables in case of bankruptcy of the buyers and in
case of deliberate non payments by the suppliers when
there is no dispute between the buyer and seller. We
prevent the exporters bad debts through our investigation system; we inform the status of buyer.
As a result of comprehensive services and customized
solutions that leads to securing the immediate liquidity
has turned most of our customers into loyal customers
when it comes to trade finance.
There are a number of customers in each exporting city
that recommends to their buyer that if they will offer
credit that will be only through DS-Concept.
I&M: Have your service contributed to the growth of total
export volume of Pakistan?
Mr. Jaffri: Yes, our services have contributed in the growth
of total exports in a way that before the establishment of
DS-Concept in Pakistan, the exporters were not aware of
the advantages and its impact on the growth of their
exports. So after the awareness of our services the
exporters of Pakistan realized that in the past they were
refusing a large amount of business from the customers
who were demanding credit time, which they started
accepting due to our presence as they realized that
DS-Concept will enable them to supply on credit to their
buyers because DS-Concept will provide them immediate liquidity and will also secure their receivables.
After experiencing the benefits of DS-Concept the
exporters informed their customers that they are ready to
accept the demand of credit terms. As the references of
our customers increase so the volume increased.
On the other hand, the buyers who experienced
DS-Concept and its advantages for buyers they recommended to more suppliers that they can supply on credit
via DS-Concept Factoring. So, the bottom-line is that the
exporters have grown from a single customer to many
47
Business Interviews
customers and the references of the exporters increased problem. We are located in 11 countries i.e. Pakistan,
the number of exporters who patronized DS-Concept Bangladesh, USA, Spain, Bulgaria, Hungary, China, Hong
Kong, UAE, Turkey and we have our head quarter in
Services.
Germany. Besides this we have our lawyers and collection
officers in several countries.
I&M: Do you have any financial limits?
Mr. Jaffri: No, there are no financial limits, in fact the
exporters can apply for any credit limit on their buyer, if
after analysis of the customer DS-Concept finds the
possibility of demanded limit then it is approved and the
exporters can ship within those limits and they will be
provided 80-90% post shipment finance against each
invoice after getting acceptance from the buyer.
Whereas, the remaining balance is paid to them upon
collection of invoice from buyer. Our credit shield partner,
Euler Hermes is the worlds largest credit insurance
company so acquiring the better limits for our customers
becomes easy for us.
The large network of DS-Concept generates a huge
amount of revenue for the company. Therefore, providing
post shipment finance against bigger limits is also not a
I&M: What are your views about TDAP?

Mr. Jaffri: TDAP is a government organization; it is
presumably an organization that should be aggressively
promoting the products of Pakistan in other countries.
We have observed that there are many products of
agricultural produce e.g. rice, fresh fruits and vegetables,
and many food products e.g. halal meat and its varieties
that needs more attention for promotion.
TDAP is a big organization; they can have windows for
promotion of Pakistani products. Wherever the trade
commissioners are deputed they can have different
promotional campaigns. In textile sector TDAP is helping
the exporters to participate in fairs and expos around the
world but there is more to be done for this sector.
Federal Cross of Merit Awarded to German Honorary Consul
On the evening of 27 September 2014, Mr Anees ur Rehman, German Honorary Consul in Lahore, was awarded the
Federal Cross of Merit on ribbon by Ambassador Dr Cyrill Nunn. The award was presented at a dinner held at the
residence of the Ambassador of the Federal Republic of Germany Background Information
in Islamabad. During the ceremony, Mr Anees ur Rehman was The Order of Merit was instituted by the German
acknowledged with great applause for the many years of perfor- government in 1951 and is the only honour awarded
mance as German Honorary Consul and his singular efforts to in all fields of endeavour and the highest tribute the
Federal Republic of Germany can pay to individuals for
foster German-Pakistani relations.
services to the nation.
48
Special Feature
Two-Year Review of GPATI
at German Consulate in Karachi
51
Special Feature
My Successful GPATI Journey: Where I Was to Where I Am

Anaas Kaser
A Successful trainee &

a permanent employee
of DB Schenker
Today I feel blessed and honoured

to be a part of Germany Pakistan
Training Initiative Program and
having a chance to represent one
of the successful GPATI students.
My journey started on a regular
Sunday morning of May last year, when
I picked up the newspaper as a habit
and was skimming through it hurriedly
when my eyes caught a black and
white ad about some Germany
Pakistan Training Initiative. It was a
phase in my life where, after completing my graduation, I was standing on
the crossroads of whether to continue
studies or to start off my professional
life. At that decisive moment, a dual
training program seemed to be the
perfect blend of both, and so I decided
to visit iACT for details. One thing led
to another, and after an entry test and
number of interviews I got enrolled for
the course of Logistics and Supply
Chain Assistant.
From the beginning I was satisfied with
my decision because I could see the
worth of this training program as some
well renowned organizations of the
industry were associated with the
program with their kind and goaloriented objectives.
The first part of the

training at iACT was a
unique and outstanding academic experience of my life and I
am still getting its long
lasting fruits. I experi-
enced highly competent and competitive instructors

and mentors there
and was equipped
with all state of the
art facilities from classroom to
sports facilities.
Guest speakers lectures, learning tours

to different industries and classroom
activities especially project submission
criteria were an innovative part of this
6 months training. Sports competitions and co-curricular activities were a
bonus and helped me develop some
lasting friendships with my fellow
GPATI course mates.
The next part, the On Job Training part
was very purposeful and resultoriented. To work for DB Schenker, was
a fascinating experience in its true
sense. First of all, being a multina-
tional organization, the protocol

and treatment they gave me
throughout OJT was very impressive and beyond my expectations.
They indulged me with their highly
confidential and busiest daily routine
work just for providing me real essence
of work place challenges. I was rotated
to all different but relevant to my
training departments. I learned practical cooperate communications and
work place ethics and etiquettes.
Weekly review meetings, fortnightly
tests,
guest
speaker
sessions
(representatives from Airline and
52
shipping line industry) and last but not

the least the monthly on-site physical
visits to learn cargo handling and
custom procedures at airport, seaport
and CFS yards. These all training tools
were being employed to bring the best
out of me.
One thing more I would like to

mention here that was done first
time in our final exams is the Live
Booking where we have to file live
custom manifestation.
Adding to this, the observation visits
by delegations from different organizations like GIZ, EU and German
Consulate. It was inspiring and
motivational for us to know that

there are some people who want
to see Pakistan develop and prosper like their own countries.
And at the end of OJT, they surprised

me and my GPATI course mates with
the good news of offering us a permanent job opportunity at the organization. Today, it is not just my workplace,
it is my love place.
I would conclude by summing up my
success journey with GPATI into 3Ps of
contributions in my life.
Personal (It strengthened me

and my family financially)
Practical (It equipped me with
all practical and hands on training)
Professional
(I
learned
professional etiquettes from Attire
to communications)
Thank You GPATI and all of you.
Special Feature
GPATI - OJT Session at DB Schenker

1st Day at CEI/DB Schenker
Geared up for On Job Training
1st Outdoor Group Visit (along with all GPATI Students & iACT Team):
Facility BOML CFS (To Review Sea Freight Import
De-consolidation Process near Karachi Port)
Visit to Metro-Habib Cash & Carry Facility
55
Special Feature
Qasim Freight Station Port Qasim
Delta Cargo Airlines Mr. Waqar Hashmi
Lufthansa Cargo Airlines Mr. Shakeel Qureshi
Delta Shipping Lines Mr. Syed Munawar Ali
Exclusive One Day Session on Afghan Trade via Pakistan Corridor

Expert: Syed Noshad Hussain
56
Special Feature
GPATI & the Signicance of

Vocational Training in Pakistan
According to the research by European Centre for the
Development of Vocational Training:
I am confident that
the future of my
professional career is
getting an experience
in vocational training
followed by on job
training in different
departments of
logistics and supply
chain management
organized in such an
efficient way,
Sanam Khan,a successful trainee of

GPATI and employed by CEI-DB
Schenker-WWG.
Company profitability in Germany was improved by a

complex dual system, where schools and firms share the
responsibility of providing initial vocational training
(IVET) in a complementary way. In a dual system, based on
the institutional link between school and work, the effects
are more visible than in cultures where the learning principles are not so well developed and promoted as national
priorities. Participation in training activities has positive
long-term effects. Acquiring new skills and competences
can extend professional opportunities at micro level.
Micro and macro effects are related: high labour-market
participation implies a low rate of unemployment and can
have favorable consequences for national competitiveness and GDP growth.
We are living in a world where global changes and technological
advancements have affected the process leads to innovation, new
forms of work organization, changes in the nature of work and
new occupational categories.With these changes, human resource
development takes the position of significance. In Pakistan we are
still striving hard togenerate a vision for human resource development, which is very important for our national progress to face the
global challenges.
Vocational training is the prerequisite for the development of
human resource and skilled labor. Dr. Aqila Khatoon, an assistant
professor at University of Karachi wrote that: In Pakistan vocational training is available at all levels and vocational training
institute are also established in private as well as government
sectors. Some of the vocational training centers were developed
three to four decades ago and are now present a scene of haunted
houses. The weakness of most vocational training institutes in
Pakistan is that they are not properly equipped to provide vocational training. Secondly the training programs mostly do not have
effective follow up and job placements.
Though vocational training is crucial, there has always been a
misconception about it. It is considered far inferior to university
57
Special Feature
education. The educational system has brain-washed students, parents and scholars alike to think that white
collar jobs are what define an individual to be a person of substance. It is vocational courses that impart skills
needed in the job market, or empowers one to become self-reliant.
There is a high demand for technical people in the automobile industry, electronics, mechanics, chemical or
process control, welding, fabrication and pipework. Other training courses include customer services, sales,
supply chain management, logistics, and operations. These are hands on skills that the economy of any nation
needs to grow from one level to another.
With the support of German Ministry of Economic Development and Cooperation (BMZ) through Deutsche
Gesellschaft fuer Internationale Zusammenarbeit (GIZ), the German Consulate in Karachi together with eight
German companies and two vocational training institutes AMANtech and IACT, launched the German Pakistan
Training Initiative (GPATI) in 2012.
GPATI based on the famous concept of Dual Training System which is widely used in Germany and is internationally successful. This training scheme is demand driven system, not supply driven, and focusses on development
of a highly skilled workforce. The objective of this unique training initiative is to produce workforce which is
immediately productive and ready to take on the challenges of the industry. The participants of this program
will have a good balance of knowledge, skills and positive attitude. On the Job training is an essential element
of this concept.
In the world of today, availability of skilled manpower is a challenge. Well-trained human resource tailored for
particular skills and competencies is extremely difficult to recruit. To address the challenge of generating a regular stream of dedicated manpower, German multinationals like CEI SC/ DB Schenker (Partner of the DB Schenker
network), Lufthansa Cargo, Siemens, BASF, Linde, Mercedes-Benz, Merck, DHL and Metro Pakistan have
partnered in GPATI.
Recently the first batch of trainees of the GPATI successfully completed their training program. Young trainees
were selected for the classroom training at IACT, On Job Training at DB Schenker and have taken final examination under the supervision of GIZ, have not only completed their training program but they will be employed by
CEI-DB Schenker-WWG, which illustrates a win-win-partnership provided by GPATI.
A formal ceremony to celebrate wonderful and successful initiative of German Government was held at World
58
Special Feature
Wide Group (WWG) Head Office. Dr. Tilo Klinner was the guest of honor along with Mr. Sohail Yasin Suleman,
Group CEO, WWG and Honorary Consul of Mauritius, Mr. Qazi Sajid Ali, Chairman, GPTI and Mr. Reinhard Muller,
CVE. Heads of DB Schenker in Pakistan and Lufthansa Cargo were also attended the event.
Dr. Tilo Klinner was really delighted by the success of GPATI and said:
GPATI is a potential game changer. It could help the young people of Pakistan to enter in the job
market. The program is stand out due to its intensive involvement of the participating Pakistani and
multinational companies. We are very confident that because of the quality management, trainees can
be employed in any company of Pakistan as well as abroad. Our consulate is really proud to have association with the companies in Pakistan and we hope to work with them in future.
Mr. Sohail Yasin Suleman said:
Mr. Qazi Sajid said:
I am extremely happy to finally witness the

completion of the first phase of this pilot
project. GPATI is becoming well-known in
Corporate World and expanding all over
Pakistan at a rapid pace.
We conceived the concept and decided how

to show the light to make Pakistan youth
useful citizens. Vocational Institute makes this
pilot project a success and the scope is going
to expand.
The administrators of GPATI are looking forward to upscale the project on national level in a way that ensures
quality. The impact of vocational training on labour market outcomes often reflects direct or indirect aggregate
individual productivity effects. The main outcomes stressed are higher participation on the labour market, lower
unemployment, the opportunity to acquire a qualification for all categories which did not previously have one,
and the chance to advance in a professional hierarchy. Through lifelong learning, individuals can improve their
work opportunities and qualification levels. Higher remuneration offers new opportunities which lead to
further economic and social outputs, such as economic autonomy, and can also enhance psychological wellbeing. All these factors ultimately impact individual productivity and finally enhance national productivity.
On the Occasion of Germany Pakistan Training Initiative (GPATI)

Success Celebrations Held at World Wide Group
59
Special Feature
Glimpses from Past
MOU Signing Ceremony between BASF and AmanTech

Tuesday, February 12, 2013
60
Special Feature
Sustainability Exchange Conference

Role
of
Technical
and
Vocational
Skills
Highlighted
Orgazized by Engro Foundation
Experts and leaders from the corporate
sector underlined the importance of
technical and vocational education and
training (TVET) and urged for permanent
and meaningful linkages of public and
private sector for the production of a
skilled workforce in line with the market
needs.
Engro believes that as a

leading corporate
entity we have the responsibility to bring to light key
issues that impact our
economy and
the community as a whole.
The Sustainability
Exchange 2014 is an
attempt to highlight the
issue of skills development
and technical training of
our youth that is currently
estimated to be 42 million.
By 2050, this youth population is set to increase to
350 million. Therefore, it is
imperative that as
business leaders we take
the ownership to devise
the right strategies and
invest in deploying inclusive businesses that can
provide socio-economic
opportunities to this large
chunk of our population
Aliuddin Ansari
CEO & President
Engro Corporation
This was a clear message coming from the

national conference entitled Sustainability Exchange Conference.
The conference was organized by the
Engro Foundation with the support of
TVET Reform Support Programme, which
is funded by the European Union, the
Embassy of the Kingdom of the Netherlands, the Federal Republic of Germany
and the Royal Norwegian Embassy, and
commissioned by the German Federal
Ministry for Economic Cooperation and
Development
(BMZ).The
Deutsche
Gesellschaft for International Zusammenarbeit (GIZ) GmbH is implementing
this programme in close collaboration
with the National Vocational and Technical Training Commission (NAVTTC).
The main objective of the conference was
to promote a profound dialogue between
public and private representatives on the
TVET reform, with the objective to
improve livelihoods through relevant
skills training, job creation and sustainable investment.
Mr.Larsh-GunarWigermark, the Ambassador of European Union, Mr. Marcel de
Vink, the Ambassador of the Kingdom of
the Netherlands, Dr. Cyrill Nunn, the
Ambassador of the Federal Republic of
Germany and Mr. Leif Holger Larsen, the
Ambassador of Norway were the guests of
honour on the occasion.
61
Aman Ul Haque
Manager CSR & Media
Engro Foundation
The conference further highlighted the

role of the corporate sector in employing
policies that can effectively help Pakistan
reap benefits of the youth dividend
specifically with regards to the ongoing
TVET reform. The panelists stressed that,
there is greater need and scope to invest
in skills programs supported by the public
sector and backed by industry
demand.The participants stressed upon
quality versus quantity in the TVET
system, adding the private sector can be
seen as an engine for improving quality of
the skills training. They argued that corporate investment therefore should be
designed to take advantage of Pakistans
competitive strengths and fulfil the
countrys social and economic needs. In
this context the quality of the training was
mentioned so that the pass outs will
indeed be picked up by the Industry.
Moreover, the conference placed emphasis on the need for adopting the Business
Inclusive Model in agriculture for accelerated agricultural growth, which not only
will improve food security but also alleviate poverty by enhancing incomes of
these smallholder farmers as well as
providing employment for the youth.
At the end it was clearly stressed by the
participants that it is necessary for all
stakeholders to join hands and to exhibit
the necessary will to jointly support the
reform in the skills sector in Pakistan. This
takes time, energy and resources. The
result will be a skilled Pakistan, which has
a huge potential to become a major
economic player in the world.
Special Feature
Revitalize: Vocationalization of General

Education Necessary for Youth Employment
In Pakistan, youth in age group (15-24) constitutes a
major share of our working age population. The population of working age group has increased from 53
percent in FY 1986 to 56 percent in FY 2003 (Mustafa
et.all 2005). Majority of these youths are illiterate or less
educated and facing difficulties in entering into labour
market due to lack of education and skill required in the
job market. The other causes for unemployment in
youth are structural mismatch, divergence between the
demographics of urban and rural areas, lack of experience, region or province wise discrimination in the
provision of job opportunities and sectored imbalance
(Qayyum, W. 2007). For youth, the employment to
population ratio in the year 2010-2011 is 39.6 percent
(PET-2012). There are evidence that the unemployment
in urban youth is higher as compared to the youth in
rural area because of structural mismatch of skill
provided and required. In the country about 52.4
percent of youth are not part of the labour force
(Ahmad & Azim, 2010). There are approximately 3
million youths every year joining the job market. Half of
this youth stay and get absorbed in the rural economy.
The remaining, 1.5 million youth have to be provided an
opportunity to acquire skills that could get them a job
or be self employed. The skill for gainful employment to
above youth could be provided in Technical Education
and Vocational Training (TEVT) system (Shaikh, M. A.,
2009). However, majority of youth give preference to
general education over TEVT and join schools of general
education. Moreover, limited capacity of TEVT system as
compared to the general education is unable to accommodate increasing number of youth.
Moreover, only 30 percent of Pakistans children receive

secondary level education and only 19 percent attend
upper secondary level schools (PES-2007-08).
In developed countries TEVT is used as an effective tool
to control Unemployment and Poverty, especially in
countries where TEVT is made an integral part of their
general education the TEVT has played pivotal role in
their economic growth (UNESCO, N-13, April-June
2005). Thus to create a hope in the youth for better
future and to equip especially school leavers with skill
to earn for decent living, vocationalization of general
education is need of the time.
Need for Vocationalization of General Education.
In Pakistan, there is an ever increasing number of unemployed youth, while many public and private sectors are
looking for suitably trained persons. The country is
suffering from shortage of skilled manpower, due to the
mismatch between education and job market oriented
training thus accentuating unemployment. Around the
globe the above problems of changing nature of work
and skill gaps are tackled by promoting Technical
Education and Vocational Training (TEVT), introducing
job market oriented courses, making education and
training flexible, and developing industry institute
linkages. In developed countries TEVT is used as an
effective tool to control Unemployment and Poverty,
especially in countries where TEVT is made an integral
part of their general education the TEVT has played
pivotal role in their economic growth. Thus for increasing employability of youth, there is a need of the hour
It has been observed that youth joining general educa- that vocational training will be made integral part of
tion majority of them left school without completing general education as:
secondary level education and adds to unemployed
youths on streets. Typical trend of enrollment in educa- 1) There is high unemployment rate in youth.
tion shows that about 25 percent of children are not 2) Majority of young people give preference to
enrolled in primary schools and 50 percent of those
General education over TEVT.
enrolled, drop-out before completing primary school. 3) Unemployment in youth decreasing with
62
Special Feature
increasing age, education and skill.
4) There is a high drop-out rate at middle and
secondary school level.
5) School leavers required proper skill training for
employment.
6) There are more employment opportunities for
properly trained skilled worker.
7) There is limited intake capacity in TEVT institutes.
8) Jobs are becoming more sophisticated and
required specialized skill.
employment remained in crises during the period from

1997 to 2005, the unemployment rate then started to
decline and reached to 11.6 in the year 2007. The youth
unemployment rate again rose sharply from 11.6% to
12.7% and remained comparatively steady since its rise
in 2009 (ILO, 2012).
Youth Age Group

The United Nations defines youth as a period during
which a person is being prepared and prepares himself
to be an active and full, responsible member of the
society. This period of youth is identified by the United
Nations as 15 to 24 years (ILO, 2006). While the lower
period remains 15 years, each country has adopted
different maximum years ranging from 24 to 40. In
Pakistan it is taken as 15-29 years, which are 35 million
in number (Malik, M. A. A., 2004). Youths are working
age population and an asset to a nation. In developing
country including Pakistan this working age population
is increasing, whereas the developed countries are
facing problem of ageing population. The demographic
dividend of youth (working age population), if properly
educated and trained could play vital role in economic
development of the country.
Unemployment in Youth
Un-employment in youth is of great concern for the
world, as the unemployed youth consequently face
social exclusion, get frustrated and involved in drug
abuse and street crime. Furthermore, politician and
religious groups when desired could very easily exploit
these frustrated immature youths. In Pakistan, it has
been observed that most of the suicide attacks in recent
years have been carried out by youth of age 15 to 24
years.
Overall youth unemployment rate in the world was
lowest at 11% in the year 1992, afterward the youth
unemployment rate started to rise and reached to maximum 13.1% in the year 2002. Around the globe youth
In Pakistan, there is a higher youth unemployment rate

in Balochistan as compared to the other provinces of
the country, where unemployment rate at the age of 15
is 78% both in urban and rural areas (Fig.1). However, in
Sindh province youth do not face many difficulties in
finding work and at the age of 15; youth unemployment
rate is 24 percent and 11 percent in urban and rural
areas respectively (Amed & Azim 2010). Youth unemployment rate in the country decreases with the
increase in age, education and experience. The youth
employment trend in Punjab, Sindh and Khaiber
Pakhtoon Khawan (KPK) province is almost very close
and similar, whereas overall unemployment rate in
Baluchistan in much higher than other three provinces
of Pakistan. In the country major causes for unemployment in youth are:
a) Higher growth rate of population exceeded optimum
limit and available resources.
b) Decreasing investment in private sector and shifting
of capital abroad because of the unrest, violence, high
taxes, governments business unfriendly policies and
nationalization of industrial units in the country (Khan, I.
A. 2003).
c) Reduction in jobs in both public and private sectors.
d) Youth population is not prepared for
self-employment.
e) Lack of education and training: majority of unemployed youths are illiterate or less educated and facing
difficulties in entering into labour market due to lack of
education and skill required for the job market.
f ) In Pakistan, the other typical causes for unemployment in youth are structural mismatch, divergence
between the demographics of urban and rural areas,
lack of experience, region or province wise discrimina-
63
Special Feature
tion in the provision of job opportunities and sectored (61%) and (59%) respectively with lower unemployment rate (14%), (28%) and (32%), whereas in Baloimbalance.
chistan there is low literacy rate at 48% with higher rate
of unemployment at 76% (Fig-2).
Source: Ahmad & Azim, 2010.

Figure-1 Provincial unemployment rate in
Pakistan, LFS (2006-2007)
Figure-2 Youth (15-24): Province-wise Youth Literacy rate in Fy 200506 (GOP-2008) and Youth unemployment rate in Fy 2005-2006
(Ahmad & Azim, 2010).
Education and Skill for Youth Employment.

Education and skill play pivotal role in employment of
youth. The result of Labour Force Survey (2005-2006) in
the country shows that unemployment is more in youth
illiterate or less educated. Furthermore, youth have
education below tertiary level earn less and whole life
remains in a relatively disadvantaged position as compared to better-educated youth. Comparing province
wise youth unemployment rate with youth literacy rate
showed strong inverse relationship. In Sindh, Punjab
and KPK provinces there is higher literacy rate (71%),
In developed countries similar above effect of education on youths unemployment is reported by ILO
(Fig-3). In 21 countries out of 27, unemployment rate is
high between persons with primary education. It is also
observed, that people with skill and more education
have more opportunities of employment as compared
to the people with no skill & less education (ILO, 2012).
Figure-3 Changes in unemployment rate by educational level in developed economies.
64
Special Feature
Dropouts Rate at School level
The school enrollment data obtained from Pakistan
Education Statistics (2007-08) shows that enrollment in
Primary level (17.288 million) is much higher as compared to the enrollment in Middle level (5.362 million).
There is student dropout of 69% (Fig-4) between
primary and middle level. Further almost 86% of
student those enrolled in Primary left the school education at Secondary level. The data show very low enrollment (0.255) in technical education as compared to
general education.
Realizing the importance of vocational training and

increasing rate of youth unemployment, in the year
2000 the government has decided to introduce Matric
Technical Stream (MTS) for vocationalization of general
education under Education Sector Reform project. The
scheme was designed in inspiration of Technical School
Certificate (TSC) program offered by the Sindh Board of
Technical Education (SBTE) in the Sindh province. The
TSC program was introduced by SBTE in the year 1973
at Vocational Training Institutes with the main objective
to provide an opportunity for learning skill to youth
who left school education at middle level. The TSC
scheme of study consists of three components: (a) Compulsory, (b) Optional and (c) Technical component
containing trade course.
Data extracted from PES 2007-08

Figure-4 Student enrollments in Pakistan by level of education
Thus, there is a need that high number of youth leaving

schools at early stage of working life could be made
more employable by introducing vocational training at
school. By learning employable skill, these youth could
play effective role in economic development of the
country. Otherwise, there is always chance that these
immature and unemployed youths could be exploited
by the evil internal and external forces for their negative
agenda.
Efforts for Vocationalization of General Education in
Pakistan
Realizing the importance of demographic dividend for
economic development and save high number of
school leaver and unemployed youth from being
involved in unlawful activities, in the past number of
efforts were made by the government to vocationalize
general education in the country.
Figure-5 Comparison of Vovationalization schemes in Pakistan.
For MTS, 17 trade courses and teaching learning

resources were developed by the National Institute of
Science and Technical Education (NISTE), Islamabad to
be offered in 9th and 10th class as an optional subject to
choose among Biology, Computer Science and Trade
course. Depending on the facilities available in school
student could select a trade course from 17 available
trades. The two credit hour trade course was design to
assess by the examination board of general education.
Initially, it was plan to introduce MTS in 1100 schools of
general education in the country. However, during
devolution plan and introduction of City District
Government the scheme was mismanaged and the
money allocated for providing tools for the workshops
in the school was utilized for construction of workshops
in schools, thus the MTS scheme was abandoned before
implementation. The other reasons for flop of MTS
65
Special Feature
scheme were lack of interest, commitment, shortage of
money, shortage of technical staff and lack of expertise
in examination board to handle the assessment of technical trades. The scheme for MTS was later on taken up
by comprehensive schools.
system. In Pakistan and Malaysia (Fig-6) separateparallel system for vocationalization exists, however the
success of Malaysian model lie on its pathway and
mobility of students in one stream of education to the
other stream of education.
Models for Vocationalization
b) Dual Training System
Vocationalization for general education models generally based on the three modes for TEVT delivery (a)
School-Based, (b) Centre-Based and (c) WorkplaceBased. For vocationalization each mode has its advantages and disadvantages. Generally, vocationalization
models are based on single mode of delivery with
developed NQF for determination / recognition of
qualification across general education and TEVT.
The hybrid training system is offer in partnership and

combination of learning at school/institute and training
at industry/workplace. The vocational school supplement the training received by student at workplace at a
theoretical level and to fill gaps in general education. In
Germany, there is a very successful and popular model
for Dual Training System (Figure-7), where a trainee
attends training in a company (Workplace-Based) for
three or four days per week and at a part-time vocational school (School-Based) one or two days per week.
The implementation of dual training system requires
strong Industry Institute linkages and required commitment from both industry and institute. The dual
system of training in Germany is governed by legislation under the Vocational Training Act. In Germany
there are also some full time vocational schools those
provide school based vocational training.
a) Separate Parallel System

A separate-parallel system required its own TEVT
institutions and separate facilities in schools to offer
training. The separate-parallel system at school
required integration of vocational courses into general
education curriculum with maintaining balance
between theoretical and practical training. For recognition of learning and mobility of students in separateparallel system, pathways between vocational education and general education is required. In separateparallel system, it should be possible for school leavers
to learn a trade to re-enter the formal vocational school
system to upgrade their skills, either on part-time or
full-time basis. Similarly, regular vocational school
students should be able to acquire relevant practical
skills in the non-formal sector in separate-parallel
Figure-7 German Vocational Education System
c) Apprenticeship
Source: Ahmed, Z.(2011)

Figure-6 Structure of TVE system in Malaysia
In apprenticeship model, vocational training is delivered at workplace. It is similar to the informal training,
where a young person works with an employer to learn
a craft for exchange of food in person agreement with
66
Special Feature
the employer. In Pakistan, the training is regulated
through Apprenticeship Act-1962, where each industrial unit is bound to provide apprenticeship trainee in
their premises and apprentice is paid by the industry.
However in developed world where apprenticeship
training is a very effective system to train unemployed
youth, the idea of working for food is reversed and for
apprenticeship training either government, financier or
trade association have to pay the fees of apprentice to
the employer for learning a set of skill at a workplace.
For effectiveness, the training is supervised and certified by training donor agency. In developed countries,
such as USA and UK under apprenticeship program the
vocational training is left to the initiatives of the
individuals, companies, local authorities etc. Companies, especially the big ones, play a dominating role
within the vocational training.
Around the globe experts are in favour of SeparateParallel system (Fig.9) as the other models required
strong industry-institute linkages, which is very difficult
to developed even if industry is available within the
vicinity of school/institute. Furthermore, the experts in
general would like to keep curriculum for vocationalization of school overwhelmingly academic containing
minor portion of practical skill (Louglo, 2005). The
Separate-Parallel system required more financial
resources, equipment, trained technical teachers and
recurring operational cost at school.
Source:UNESCO
In the country, after failing to obtain fruitful results in

Comprehensive high school and Agro-Technical
schemes for vocationalization of school, the NISTE
conducted a study (Fig-8) for selection of suitable
model for vocationalization of schools in the year, 2009.
The results of study presented in fig.10 shows that
majority of respondent were in favour of SeparateParallel system.
Figure-9 Model: Separate-Parallel for Voctionalization of
Secondary education
Conclusion and Recommendation For

Vocationalization
Figure-8 Results of study conducted by the NISTE in the year 2009
Importance for vocationalization of school education

specially to prepare low profile youth for world of work
has been realized around the globe. Developed countries where linkages between industry and institutes are
well established effectively using all the three models
for vocationalization. In developed countries TEVT is
used as an effective tool to control youth Unemployment and Poverty, especially in countries where TEVT is
made an integral part of their general education the
TEVT has played pivotal role in their economic growth.
In some developed regions of the world enrolment in
vocational training is upto 50% of the total enrolment in
secondary education, whereas in Pakistan the total
enrolment in vocational training is less than 2% of the
67
Special Feature
enrolment in secondary education. Therefore, to
prepare large number youth and school leavers for
world of work and gainful employment in the country,
there is need that we plan for next decade that enrolment in vocational training at school will be raise upto
10% of the enrolment in secondary education. It is
recommended that:
e) Trade courses shall be assess and certified by BTEs or

TTBs. The student taking Trade course shall be allowed
Credit transfer for admission in TEVT institute.
a) Realizing students and parents are inclined towards

academic studies in general education and overall
image and status of TEVT is low in the society. Further
expecting to learn practical skill from students of class 6
to 8 is too ambitious. It therefore recommended that at
schools of general education from class 6 broader
awareness about the vocational training shall be developed. The students at middle level (class 6 to 8) shall be
provided knowledge, aptitude and values about vocational training, whereas students at secondary level
(class 9 and 10) will be offered practical skill training.
Advantages
f ) NAVTTC shall also launch a project for VT at school,

where student electing Trade course may be given
stipend and tool kit.
Hybrid system will help in optimum utilization of facili

ties both in Schools of General education and at
Institutes of TEVT.
With minimum available resources the scheme for
vocationalization could be implemented.
It will open doors for flexible education and training.
School leavers with learning skill for employment would
be able to rejoin the school again.
School of General education would not be required to
establish and maintain workshops and technical staff.
Recognition of learned skill will be insured by certifica
tion of technical courses by the Board of technical
education.
Student will be able to learn skill properly and under the
supervision of technical teachers.
Student will be able to get credit transfer in admission for
further higher education.
School of general education will have no fear of closing
the training in middle of the session, due to transfer or
unforeseen extra ordinary leave of Trade course teach
ing staff at school.
Students will have more options in selection of trade
course.
b) Our past experience of Comprehensive high school

and Agro-Technical schemes for vocationalization show
that, it is extremely difficult to implement a wide range
of complex TVET skills in the classroom. Similarly,
providing and maintaining practical facilities (tools,
equipment, raw material and workshop) and trend
teachers at school required heavy funding. It is recommended that instead of investing in school for developing skill training facilities and providing technical teachers, hybrid training system is introduced. Where each
school of general education is partnered with a vocational training institute in the vicinity, where for vocational skill training 9th and 10th class students from Disadvantages
high school attend one or two days at partner voca Synchronization between school and institute required
tional training institute.
dedicated heads.
School/Institute will be required dual affiliation.
c) In regions where vocational training institute is not Increased cost on students due to double registration
available in the vicinity of a high school or where school
and examination fee.
of general education is not available within the close Students will have to attend two institutions; institute for
trade course and school for courses in general education.
vicinity of a vocational institute the schools and voca
School and Institute hours might be increased.
tional training institute may run as a parallel vocational
Transportation of student might put extra financial

training institute / school.
burdon.
d) Students adopt vocational trade in class 9th and 10th

shall be given incentive of credit hour and benefit of
extra 2% marks for admission into further higher classes.
68
Paper presentated in National Round Table Conference on

Technical Education Vocational Training Organized by NAVTTC in
Collaboration with UNESCO at Islamabad
Dr. Masroor Ahmed Shaikh
Director Academic & Training Sindh Technical Education &
Vocational Training Authority, (STEVTA) Karachi, Pakistan
Diplomatic Corner
Pakistan - Belgium Business Forum hosted a Truly
Belgian Dinner at Karachi Marriott Hotel
70
Diplomatic Corner
71
Diplomatic Corner
Pakistan - Belgium Business Forum (PBBF)
Pakistan - Belgium Business Forum (PBBF) was formed in April, 1997 with 14 founder members under the patronage of Royal Belgian Embassy. His Excellency Mr. Wilfred Geens was the Ambassador of Belgium in Pakistan and
Mr. A. H. A Ahmed was the first President of PBBF at that time. Mr. Abid Husain was the Trade Commissioner and
fully supported the initiative. Thus, the credit for forming PBBF goes to these three "founding fathers". The
Ambassador of Belgium is the Patron in Chief of this Forum.
PBBF is accredited by Federation of Chambers of Commerce and Industry of Belgium and Luxembourg and has a
MOU with Brussels Enterprises Commerce and Industry to encourage bilateral trade and business activities
between the two countries. Our objectives are to encourage and promote business ties, mutual understanding
and friendly relations between the business communities of the two countries whilst our membership of 63 companies encompasses a diverse range of business activities such as Shipping and Freight Forwarding, Textiles, Oil
and Gas, Manufacturing of Building Materials, Cement, Glass, etc. with varying degrees of collaboration with
Belgium. PBBF enjoys a tremendous reputation amongst other Fora as well as business and official circles.
Belgian Food Festival 2014

Pakistan Belgium Business Forum (PBBF) also organizes cultural events from time to time to bring the people of
Belgium and Pakistan closer together. PBBF hosted a Belgian Food Festival in collaboration with Marriott, Karachi
in November, 2014 which is supported by the Royal Belgian Embassy in Pakistan.
The festival was inaugurated by H.E.Mr.PeterClaes, Belgian Ambassador to Pakistan. For the occasion, a chef from
Belgium was especially flown in alongwith the food ingredients to prepare authentic Belgian cuisine whilst an
accomplished jazz saxophone player Mr. John Snauwaert entertained the audience.
Mr.MohammedA.Rajpar, President, introduced the Forum and its activities/objectives and said the festival was
being organized after four years but PBBF was hoping to make it an annual affair.
The festival enabled connoisseurs of Karachi to explore and enjoy the myriad tastes and flavors of Belgian food as
well as build bonds between the two peoples.
Mr. Matthias Van Acker
Mr. Matthias Van Acker,
known for his daring
combinations and passion
for cooking, graduated
from
the
prestigious
TerGroenePoort
hotel
management school and
worked in a number of
Belgian restaurants which
include Rowan and Herbert Robbrecht.
After his experience in Belga Queen Brasserie, he
currently works in Coeur dArtichaut restaurant at
the Ghent Marriott Hotel.
Mr. John Snauwaert

The talented saxophone player and composer
Mr. John Snauwaert has a very wide repertoire
and is a travelling performer. He has played on
stage with jazz masters such as Lowell Fulson,
Isaac Hurley, Gene Bertoncini, Bob Mover, Gary
Smulyan, NilsonMatta, Dick Oats, Roni Ben-Hur
and Jeff Gardner.
As a composer and musician he worked for KoninklijkeVlaamseSchouwburg, MuziekLod, De Werf, Victoria, De ViezeGasten and Circus
Picolini. He loves combining music and images and wrote music for the
animated movies Papa Trumpet, Meme by Evelyn Verschoore and The
bed by Luc Degryze.
72
Diplomatic Corner
Belgian Food Festival 2014
Fasten your seat belts not too tight as

Mr. Jan Verduyn
there is plenty of food
General Manager
Karachi Marriott Hotel
Thank HE Peter Claes Ambassador of Belgium who graces

this occasion with his presence.
Thanks to Pakistan Belgium Business Forum Mr Mohamed
Rajpar the President of PBBF who wanted to organize something special in Karachi which I truly believe tonight will be
Thank Qatar Airways who were so kind bringing in the
Belgian Professionals and some of the ingredients.
Thank Marriott Ghent, my roots and as you may know, Brussels capital of Europe, Ghent the capital of Flanders
confirmed throughlast months soccer match againstBrugge.
Soccer being a solution to lots of our political differences in
Belgium, knowing that Belgium is listed 4thin the FIFA ranking
So when Mr Rajpar asked me to organize a special Belgian evening I was immediately thinking of a great typical
Breughelian Belgian Menu accompaniedby matching beers knowing that 500 new beers were brewed in Belgium
only the last 4 years including a beer of 26 degrees black damnation but then I was wisely advised to keep it
more on the qualitylevel matching the public of tonight.
When people ask me why is it that Belgian Food is great and well appreciated by the culinary world then I always
tend to talk about the history of Belgium, that actually we have been occupied for hundreds of years by all kind
of people of various world powers and conquistadores and that we managed to keep only the good things and
virtues of these conquerors and were ready to abolish the bad things but now I tend to say that Belgium is like a
bonbon, nestled snugly in a box of chocolates, Belgium sits between France, Germany, the Netherlands, and
Luxembourg. With a land area of only about 30,528 square kilometres), Belgium produces 270,000 metric tons of
chocolate each year and boasts more than 2,000 chocolate shops.
Belgiums chocolate obsession is fuelled by a 150-year-old tradition of producing some of the worlds finest
chocolate. But what is it about Belgian chocolate that makes it so smooth, flavourful, and melt-in-your-mouth
irresistible? The secret lies in quality ingredients and expert processing, combined with a spirit of innovation that
continues to refine Belgian chocolate even today and this is exactly what Belgium and its culinary reputation
is;quality ingredients with expert processing with the spirit of innovation and the continuous drive to make
things better and this is what our Belgian team will bring you here tonight.
So if I may say and use some of Qatar airways language, fasten your seatbelts not too tight as there is plenty of
food and be ready for a great Belgian evening.
The entire Culinary Belgian evening will be embellished with the performance of one of Belgians reputed Jazz
Saxophone players; Namely John Snauwaert.
Bon appetit & enjoy the evening
73
Diplomatic Corner
Welcome Dinner for Indonesian Naval Ship KRI Frans Kaisiepo-368
Hosted by Mr Hadi Santoso, Indonesian Consul General in Karachi
Pakistan Navy Officers Join Indonesian Dignataries for a Group Photo

H.E. Mr. Burhan Muhammad, Ambassdor; Mr. Hadi Santoso, Consul General; First Admiral Prasetya Nugraha;
Lt. General Letjen TNI Lodewijk Paulus; Lt. Colonel Ade Nanno Suwardi, Commander of KRI Frans Kaisiepo
74
Diplomatic Corner
Germany and UNDP Partner to Support
Displaced Persons with 1 Million Euros
Germany supports this

programme because it
addresses the immediate
needs of the affected
people while at the same
time preparing them for a
sustainable return to their
home. I am confident that
it will directly benefit them
in their daily lives. I
commend UNDP for
their important work.
Cyrill Nunn, German Ambassador to Pakistan,

and Marc-Andre Franche, Country Director of
UNDP in Pakistan, signed an agreement of 1
million euros at the German Embassy today
to support the rehabilitation and return of
displaced persons from the North Waziristan
Agency of FATA. Tariq Orakzai, Director
General of the Provincial Disaster Management Authority in Khyber Pakhtunkhwa also
attended the signing agreement.
The partnership between Germany and

UNDP aims to help the provincial and district
Dr. Cyrill Nunn
authorities to manage the emergency situaGerman Ambassador
tion and prepare for the return and rehabilitato Pakistan
tion process. The measures will directly
benefit the affected people by working with
both the displaced persons and the host communities to improve social cohesion, access to basic services and increase livelihood opportunities. The
acquired skills will make the displaced persons more self-reliant during the
displacement period and give them the means to participate actively in the
return and rehabilitation phase.
Background Information:
I want to thank the

Government of Germany
for its generous support.
This partnership will
enable UNDP to effectively
support the capacities of
the FATA Disaster
Management Authority
(FDMA), the Khyber
Pakthunkhwa Provincial
Disaster Management
Authority (PDMA) and the
FATA Secretariat, while
promoting social cohesion
and expanding livelihoos
opportunities and delivery
of basic services in these
areas, particularly for
women.
Marc-Andre Franche
Country Director
of UNDP Pakistan
According to the FATA Disaster Management Authority (FDMA), the official number of registered Internally Displaced People (IDPs)
as of 27 August 2014 stands at 96.555 families. Most of the displaced people have taken refuge in host communities in the bordering
Districts of KP (including Bannu, Lakki Marwat, Dera Ismail Khan, Hangu and Karak). Under these circumstances, the TDPs continue
to face immense difficulties with limited or no access to basic amenities while being exposed to extreme weather conditions. The
worst affected and most vulnerable groups are the women and children who represent more than 70 percent of IDPs.
75
Diplomatic Corner
German Ambassador Meets Speaker and German
Friendship Group of the National Assembly
Germany and Pakistan

have a tradition of good
and amicable relations.
The Pakistan-Germany
Friendship Group in the
National Assembly
plays a major role in this
context. I am confident
that the group will
continue to work to
intensify relations
between the two
countries in cultural,
economic and political
terms. The German
political foundations
will be making a major
contribution to this
end.
-Dr. Nunn
German Ambassador Dr Cyrill Nunn hosted a dinner for the Speaker of the
National Assembly Sardar Ayaz Sadiq and the Members of the National Assembly's Germany-Pakistan Friendship Group on 28 October 2014 at the German
residence in Islamabad.
Among the high-ranking guests of the event were Mr Muhammad Baligh Ur
Rehman, State Minister for Education and Training, Mr Stefano Gatto, Deputy
Head of the EU Delegation to Pakistan, and the heads of the five German political foundations represented in Pakistan.
The Pakistan-Germany Parliamentary Friendship Group had been the first bilateral friendship group that was established in the Parliament of Pakistan upon
the initiative of the now Speaker of the National Assembly during the past legislative period.
During his visit to Pakistan in April this year the President of the German Parliament (Bundestag), Professor Dr. Norbert Lammert, and Sardar Ayaz Sadiq
agreed to further strengthen the ties between the Parliaments of both countries. The German political foundations play an important role in facilitating
bilateral exchange and providing platforms for substantive discussions on many
key political issues, like electoral reform, federalism and participation of women.
The dinner provided an opportunity to further elaborate on concrete steps in
this regard.
76
Diplomatic Corner
87th Birthday Anniversary of His Majesty King Bhumibol Adulyadej
Hosted by Mr. Pisoot Suwanrasami, Acting Consul General of Thailand
Historical Photograph of Past Presidents of Karachi Chamber Attending

87th Birthday Anniversary of His Majesty King Bhumibol Adulyadej
77
Events
Merck Calendar 2015
Merck has Selected the Work of Imran Qureshi for its Calendar
Launch Celebration, PC Hotel Karachi, November 29, 2014
Self Portrait, 2009

Gouache and Gold Leaf on Wasli Paper
Photo of Artist Imran Qureshi in his Studio

78
Events
Seminar on the Cultural Heritage of Sindh
Organized by the Sindh Ministry of Culture, the Consulate-General of Germany,

the Goethe-Institute & Heritage Foundation
A seminar on the cultural heritage of Sindh, was organized by the Sindh Ministry of Culture, the ConsulateGeneral of Germany, the Goethe-Institute and Heritage Foundation, Karachi, at the National Museum auditorium
in October, 20143 to mark the cultural heritage day. Mr. Nisar Khuro, Chief Minister of Sindh was welcomed to the
spectacular event by Consul General of Germany, Dr. Tilo Klinner. The Chief Minister said: Language, poetry, our
collective feelings, and collective psyche are so vividly reflected in our folklore which shows that we have a lot to
cherish. Only sincere and unhindered efforts towards that goal are called for. Dr Tilo Klinner, Consul General of
Germany thanked the Chief Minister for this participation and said, In order to understand ourselves, we have
to understand our history for which we have to look not just to our future but to our past as well. He said that
1,000 heritage sites had been earmarked in Sindh and a conservation inventory project was being undertaken.
He said that the endeavour was to preserve both the tangible and intangible heritage, the former meaning
monuments and other landmarks, and the latter meaning language, way of life.
Dr Michael Jansen, a German archeological expert associated with Mohenjodaro, stressing the vital necessity of
heritage preservation, also talked of both tangible and intangible heritage. In this context, he quoted the example of Europe where, he said, countries began to assert their cultural and national identity and for that they
insisted on preserving their cultural and national heritage. He said that their team had identified 700 historical
sites in Oman. Seven-thousand pictures, he said, had been preserved in their data bank. Yasmin Lari, chairperson
of the National Heritage Foundation, said: We have a really profuse heritage but unfortunately no efforts have
been made to preserve it. She narrated how old maps dating back to 1874 and sketches of the famous historical
landmarks of Sindh, in an extremely dilapidated state, had been salvaged from the Karachi Municipal Records
(KMR) and the Karachi e-library.
79
Monthly Review & Outlook
Farid Alam, CEO, AKD Securities
80
Company News
Bank Alfalah Wins Award by Global Islamic Finance Award
Bank Alfalahs Islamic Banking Group has been awarded the Best Islamic Banking
Window of a Commercial Bank in Pakistan by Global Islamic Finance Award
(GIFA).
The award is considered one of the most prestigious in the world of Islamic banking
and nance, developed by Edbiz Consulting, an Islamic nance consultancy division of the London based Edbiz Corporation UK. Speaking at the award ceremony,
Rizwan Ata, Head of Bank Alfalahs Islamic Banking Group said, By focusing on
evolving Islamic nancial solutions, we continuously strive to full our commitment to our customers using the trust we have gained over the years and this has
been pivotal to our success.
Bank Alfalah Islamic Banking began in 2003 with ve branches in four cities and
became protable within three years of commencing operations. It is now the
second largest Islamic banking operation in the country with 147 dedicated Islamic
branches oering a complete range of Shariah Compliant Islamic banking solutions
for corporate SME/commercial and consumer banking customers.
e2e SCM Opens

Oce in Singapore
Aly Mustansir,
CMO, Bank Alfalah Ltd.
Rizwan Ata
President of Pakistan commends PSOs stellar

business performance
Mr. Mamnoon Hussain the President of Pakistan
congratulated Mr. Amjad Parvez Janjua, MD &
CEO of PSO on the phenomenal success of PSO
under his leadership at a meeting held in Islamabad yesterday.
Abid Butt, CEO, e2e SCM
The e2e Supply Chain

Management, a supply chain
& logistics provider, has
launched an oce in
Singapore to expand its
presence in South East
Asia.Establishing an oce
in Singapore is an important
step towards
opening future avenues into
countries like Indonesia,
Malaysia, Philippines and
Thailand, said its CEO,
Abid Butt.
During the course of the meeting, the President

appreciated the companys stellar business
performance and protability and said that PSO
has set new benchmarks for the corporate sector.
He stated that this extraordinary business performance coupled with outstanding nancial results proved that public sector companies of Pakistan can
compete successfully with multinational companies as well. It is a mark of
pride that PSO being a successful and responsible Pakistani company has been
enlisted on the Forbes top 2000 Company list enabling PSO to represent Pakistan on the international business arena as a national ag bearer.
Financial Year 2014 was a momentous year in PSOs operating history when the
Company recorded all time high sales revenue, operating prot, after tax earnings and market capitalization. During the year, the Company earned a prot
after tax of Rs 21.8 billion against 12.6 billion last year with unprecedented YoY
growth of 73%. Consequently, the Company made highest ever contribution of
Rs 289 billion to the Government exchequer in the form of taxes, duties and
levies. PSOs outlook was upgraded by PACRA from Stable to Positive with
AA+ and A1+ long and short term credit ratings. The Company also crossed Rs
100 billion mark of market capitalization to be one of the few large cap compa-
81
Company News
nies on the Stock Exchanges of Pakistan. The company also outshined its performance globally by entering in the
prestigious club of worlds biggest publicly-traded companies on the Forbes 2000 list.
The Company has plans for further expansion in Pakistan and has increased its shareholding in Pakistan Renery
Limited from 18% by exercising its right to purchase additional holding in PRL. PSO also successfully undertook
the LNG import project assigned by the Government and successfully completed the ground work for the project.
Furthermore, the Company made all time high contribution towards CSR, and contributed Rs 40 million to the
Prime Ministers Relief Fund for the Internally Displaced Persons from North Waziristan in addition to donating a
portion of its employees salaries for this noble cause.
As a responsible corporate citizen, PSO is playing its due role in maintaing the energy lifeline of Pakistan, particularly by meeting power sector fuel supply challenges.
NBP Takes One More Leap, Signs MoU With

Master Motors for PMYBL Scheme
National Bank of Pakistan took one more leap
forward on Monday and signed a Memorandum of
Understanding (MoU) with the Master Motors to
provide commercial vehicles to the applicants seeking loans under the Prime Minister Youth Business
Loan Scheme.
Speaking to media NBP President Syed Ahmed
Iqbal Ashraf said that the bank was making hectic
eorts and forming alliances with dierent groups
and companies to make the PM Youth Business
Loan result-oriented. NBP chief stated this at the
MoU signing ceremony with the Master Motors at
the NBP Head Oce.
This ceremony was attended by Syed Ahmed Iqbal Ashraf President & CEO of National Bank of Pakistan, Mudassir H. Khan SEVP & Group Chief, Commercial & Retail Banking Group, and S. H. Irtiza Kazmi EVP & Coordinator PMYBL, Commercial & Retail Banking Group. While Master Motor Corporation (Pvt.) Ltd. was represented
by Mr. Nadeem Malik Managing Director, Muhammad Nadeem General Manager Finance, and Mr. Muhammad Suleman Senior General Manager Marketing and Sales at Master Motors Corporation (Pvt) Ltd.
Answering a question Mudassir H. Khan of the NBP said that the PM Youth Business Loan programme would
prove a milestone for the business and economic growth in the country. He said that several highly educated youths
dont get jobs and this programme would be very benecial for those who want to start their own business by
getting loans.
The NBP ocial said that being the largest public sector bank NBP has always played a vital role in product innovation and penetrating the hitherto neglected market segments. While sharing the commitment of the Government
towards uplifting the youth and providing them opportunities of nancial independence through
self-employment, NBP has yet again demonstrated its lead position by leading the Prime Ministers Youth Business
Loan program, they said.
Master Motors is one of the leading manufacturers and assemblers of Chinese commercial vehicles in Pakistan. The
company is also producing some products for the worlds leading brand, Mitsubishi in Pakistan that shows the
quality, trust and reliability of our vehicles, Nadeem Malik, MD of Master Motors said.
objectives and providing additional opportunities to the prospective customers," he added.
82
Company News
Getz Pharma Announces Future Investment Plan
Speaking at a function organised to celebrate the WTO certication to
the companys laboratory, Mr Khalid Mahmood, Managing Director
and CEO of Getz Pharma said that we are only company in Pakistan to
win the trust of international organisation, which has certied only 33
labs globally in the last 10 years. The function was attended by over 150
leading physicians and professors from all over the city.
The chief of the fastest growing company among 600 pharmaceuticals in
Pakistan said that some multinationals have left country while his company has invested over Rs 6 billion in last four years on up gradation of
machinery and capacity building of the sta, which has paid dividends.
Khalid Mahmood, MD & CEO, Getz Pharma
We will establish a state-of-the-art manufacturing facility in Karachi which will have a positive impact on
this sector, overall economy and job market, Khalid Mahmood who started the business with few
employees to become third biggest company having 42 per cent share in countrys total pharmacy
exports within 19 years said that we are exporting to 22 countries and will be adding few more countries
soon while focusing on the US and EU markets.
The WHO pre-qualication is an honour for Pakistan and our 5500 employees including 119 scientists
and experts serving with dedication, Good Manufacturing Practices and strict compliance standards, he
said. Some leading local companies are slowly building base in the local market, which was once dominated by multinationals, which is very encouraging, he informed. Khalid Mahmood said that Pakistan
had nine multinationals in 1954 while Jordan had none, but now it has exporting medicine worth one
billion dollars while Pakistans exports stands at 130 million dollars which calls for a policy review.
Companies should hire the best talent; continue to investment in human resource development, technology and brand building to become successful in a short span, the brain behind Getzs phenomenal
growth said. He said that we have planned massive expansion as Pakistan is one of the best countries for
investment and Pakistanis are matchless performers if managed properly. Speaking at the occasion Mr
Syed Sultan Ghani the man behind this success said that this is a matter of great national pride as Getz
Pharmas Laboratory has literally put the country on the map of the world, which is going to serve the
people of Pakistan a lot. This medal came in the wake of many other accolades received by Getz Pharma.
The organization has received the Export Award for eighth consecutive years.
Unilever re-arms commitment to Pakistan

Unilever CEO Paul Polman has conrmed Pakistan as an emerging market
with high potential for long-term growth. This positive outlook builds on
the four-fold growth of the local business in the last eight years; one of the
highest growth rates in the Unilever world in 2014; and the signicant scope
to grow penetration and usage of brands, especially in rural areas. Paul
Polman, visiting Pakistan for the third time in six years, acknowledged
Unilevers operations in Pakistan to be amongst the best performing businesses units within Unilevers global operations. During his visit, he inaugurated a rural customer development initiative in the village of Wagrah in
Punjab.
83
Unilever CEO, Paul
Polman
Company News
HBL, Emirates Enter into an Exclusive Alliance
HBL has entered into an exclusive alliance with Emirates airline to oer HBL CreditCard customers
discount oerings on online ticket purchases. This
makes HBL the only bank this year to partner with
Emirates airline. The agreement was signed by
Nauman K. Dar - President and CEO, HBL and Khalid
Bardan - Emirates Vice President -Pakistan.
Speaking at the occasion, Nauman K. Dar said, We are
delighted to collaborate with Emirates airline. This
complements the market standing of both organizations. With this endeavor, we foresee a long term strategic relationship with Emirates airline to fulll a
shared ambition of providing customers with a premium range of products and services.
Emirates is proud to partner with HBL to provide online benets for our valued customers in Pakistan.
This partnership represents the quality of service we provide our passengers and our long-standing commitment to this market, said Mr. Khalid Bardan, Emirates Vice President -Pakistan. Booking online is
a fast and convenient method for arranging travel. This partnership will enable our customers to enjoy
even more convenient access to our 67 weekly ights from Pakistan to Dubai and our global network
beyond.
Pak-Qatar Family Takaful Signs Agreement With JS Bank

Pak Qatar Family Takaful Limited (PQFTL) is a
leading company oering Takaful solutions in
Pakistan. PQFTL has signed a BancaTakaful
agreement with JS Bank Limited to full its commitment towards providing a higher standard of
Shariah-compliant services to a wider and more
diverse range of customers in Pakistan. This
agreement marks the rst direct arrangement
between Pak-Qatar Family Takaful and any Bank
for Banca Takaful.
Muhammad Menhas, Deputy CEO and Country
Sales Head at PQFTL said, This relationship will act as a benchmark of quality and service in the coming
days for BancaTakaful industry. It would also help PQFTL achieve its mission of providing Takaful to
everyone. We are proud to partner with JS Bank, and we are condent that JS Bank, being one of the
fastest growing banks with its 212 branch network in urban and rural areas will help promote awareness
and distribution of Takaful across Pakistan.
JS Banks President and CEO Khalid Imran, while speaking on the occasion said, This association is
testament to JS Banks understanding of the wealth management market in Pakistan. We feel there is a
genuine need amongst our customers for BancaTakaful, and we believe this association with Pakistans
leading Takaful service provider PQFTL will add tremendous value to JS Banks growing set of products
and services.
84

Issue # 606 - 24th Anniversary: Reunification of Germany

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Issue # 606 - 24th Anniversary: Reunification of Germany

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I

History from Newspapers

Focusing on German History from

07 Both parts of Germany are not only growing

Dr. Tilo Klinner, Consul General of Federal Republic of Germany in Karachi

18 The Human Urge for Freedom

20 24th Reunification Day 2014

GERMANY & PAKISTAN:

25 Issues of energy crisis wil be resolved soon

26 The next step will be the Chamber

Present & future activities of GPti

31 Celebrating the Launch of GPti

Plans laid for German Pakistan

35 Pakistan is the country no one can ignore

Nadeem Kazmi, President, PGBF

37 Assessment of German-Pakistani Relations in

44 We cannot compromise quality

Ms. Andrea Cornelissen, CFO, Bayer Pakistan

46 We devise customized solutions that no

other financial institution can do.

Mr. Qaseem Jaffri, Country Head, DS Cocept Factoring

Technical Vocational Education

51 Two Year Review of GPATI

Pictorial gallery of celebrations at German Consulate on

52 My Successful GPATI Journey

Annas Kaser sharing his experience as

55 GPATI-OJT Session at DB Schenker

57 GPATI & the Significance of

Vocational Training in Pakistan

Articulating success of GPATI &

61 Sustainability Exchange Conference

Highlighting the role of technical and vocational skills

Vocationalization of General Education

By Dr. Masroor Ahmed Shaikh

Belgium Food Festival 2014 organized by

Welcome Dinner for Indonesian Naval Ship

Dr. Cyrill Nunn, Ambassador of Germany to

87th Birthday Anniversary of His Majesty

78 Merck Calendar 2015

Merck has Selected the Work of Imran

79 Cultural Heritage of Sindh

Seminar organized by Sindh Ministry of

80 Capital Market Review &

have become the

It would have been a much

German history. In Berlin there

I&M: How do you view the Reunification of Germany?

I&M: Let us turn from the subject of reunification to the

Why do we focus on the reform of the TVET sector? As

have the resources to teach the trainees, to participate in

Dr. TK: GPATI does not invest in infrastructure. Actually,

a higher level. We are always talking about the huge

A Consul General of Many Interest and Talents:

Karachi Literature Festival 2014

Goethe-Institut and Heritage Foundation

History from Newspapers

Berlin Crisis - How Germany Was Divided, 1945:

Causes and Results of the Berlin Crisis of 1948:

The Berlin Wall, 1961:

BernauerStrasse as police from the West

Life behind the wall:

It was the other side

The Economist wrote that: As the