Komatsu Pakistan Soft (Pvt.) Limited

MIGA provided a ¥40 million (approximately $340,000) guarantee to Komatsu Limited of Japan for its ¥30 million (approximately $250,000) investment in, and future retained earnings from, Komatsu Pakistan Soft (Pvt.) Limited in Pakistan. The guarantee is for up to ten years, and provides coverage against the risks of transfer restriction and expropriation of funds.

The development of a domestic, export-oriented computer software industry is a priority area for the Pakistani government. This investment involves establishing a new company, based in Islamabad, which will develop computer software for commercial use. The project is expected to export 100 percent of its products, and will therefore contribute to the country's balance of payments through foreign currency earnings. The company will recruit and train local computer programming and software development staff.