ISLAMABAD - Under the newly signed Bilateral Investment Treaty, Germany will provide insurance guarantees to companies investing in Pakistan which would also cover political and security risks. Dr Gregor Schotten, Head of Press and Economic Section, Embassy of Germany in Pakistan told a press briefing on Thursday that the enforcement of the treaty would require ratification of the parliaments of the respective countries. No one can force the Parliament therefore, it is hard to give any timeframe or deadline for ratification on both sides. Pakistan and Germany had inked a new bilateral investment treaty in December last year during the visit of Prime Minister Yousuf Raza Gilani to Berlin. The signing of the new treaty was also to mark the golden jubilee of the first such agreement signed between the two countries on November 25, 1959, after World War II. The old Pak German Investment treaty was the first ever-bilateral investment treaty signed between any two countries. Prime Minister Yousuf Raza Gilani and German Chancellor Angela Merkel had observed signing of the treaty by the respective investment ministers, Dr Schotten said. Asked about the difference between the old and the new treaty, he said, the modern version of the treaty also covered settlement of disputes directly by the private parties. The agreement for encouragement and reciprocal protection of investments will boost economic cooperation and create favourable conditions for investors of the two countries, he said. About the sectors to benefit from the treaty, he said, energy and social sectors had the potential to attract German investment after the enforcement of the new treaty. Insurance guarantee: Under the bilateral treaty, the German government would provide insurance guarantees to investments by its companies in Pakistan and cover their political and security risks. The agreement is likely to attract investment in oil and gas, energy, agriculture, textile and industrial units.