TURKMENISTAN: PAKISTANI DCM SEES MUCH ROOM FOR

C O N F I D E N T I A L ASHGABAT 001255 SIPDIS STATE FOR SCA/CEN AND INR E.O. 12958: DECL: 09/22/2018 TAGS: PGOV PHUM PREL PK TX SUBJECT: TURKMENISTAN: PAKISTANI DCM SEES MUCH ROOM FOR IMPROVEMENT WITH THE BUSINESS CLIMATE REF: ASHGABAT 1229 Classified By: Charge Sylvia Reed Curran for 1.4 (b) and (d). ¶1. (C) A Pakistani diplomat told Emboff in a recent conversation that Turkmenistan, with its poor investment climate, is doing itself a real disservice. In a conversation with Emboff on September 18, Deputy Head of Mission Ali Araim said that he hoped that the government of Turkmenistan will come to realize that the country has much to gain from creating a legal environment that would allow foreign companies to invest more easily here. He said that there are only about 70-80 Pakistani nationals residing in Turkmenistan, most of whom are employed by foreign companies or international organizations. Most businesspeople are wary of trying to engage in commerce, he said. A number of Pakistani entrepreneurs have investigated the possibility of starting businesses here, but were put off by the red tape. In the end, they gave up. A different investment climate would undoubtedly attract many more Pakistani entrepreneurs. ¶2. (C) Dr. Araim said Pakistan works closely with the government of Turkmenistan as co-members of the Economic Cooperation Organization (ECO) promoting economic, technical and cultural activities. In addition, they most frequently collaborate on issues of counter narcotics and security. He noted the security forces' apparent lack of training as evidenced in the recent armed confrontation in the Ashgabat neighborhood of Khitrovka (reftel) ¶3. (C) On a personal note, Dr. Araim lamented the difficulties even most foreign diplomats face trying to order anything via internet, as there are no credit cards issued in Turkmenistan, no international courier services, and problems with customs if one tries to receive packages by mail. ¶4. (C) COMMENT: Endemic corruption, a difficult visa regime, and mounds of red tape make it hard for foreign businesses to work here. Until it improves the climate for foreign businesses, Turkmenistan is doing itself a real disservice. END COMMENT. CURRAN