“We are very encouraged with the first year of the Nawaz Sharif government and its focus on energy, investment and economic reforms has been very promising”, said Sarah Beran. CREATIVE COMMONS
Amid Washington’s desire to expand ties with Islamabad beyond ‘just aid’, the United States sees Prime Minister Nawaz Sharif’s government making significant gains on the economic front in its first year, said an official of the US embassy.
“We are very encouraged with the first year of the Nawaz Sharif government and its focus on energy, investment and economic reforms has been very promising”, said Sarah Beran, Washington’s Economic Counsellor to Islamabad.
Beran comments came at a time when PM Sharif is going to complete one year in office, triggering a debate over his achievements and failures.
Beran spoke on Wednesday to a group of journalists to discuss the outcomes of a meeting of US-Pakistan trade and investment council, established under the US-Pakistan trade and investment framework (TIFA). The meetings were held in Washington this week and culminated on a Joint Action Plan — a blueprint of areas of engagements in next five years.
To a question, Beran said it is important to look at Pakistan’s economic problems on a long-term basis. Many of these challenges are decades old and are going to take time to implement reforms fully. She said few indicators like the recent spectrum auction and the $2 billion Euro bond issuance show that investors are interested in Pakistan, adding that the increase in power tariffs was also a critical decision
“US does not see bilateral relations through the lens of official assistance,” said Beran. When PM Sharif met with President Obama he focused on trade not just aid. “We have tried to answer that with the Action Plan at TIFA Council meeting,” she added. She said President Barack Obama and Prime Minister Nawaz Sharif had instructed senior officials to develop the joint action plan after their meeting, held in October last year.
Beran said revival of Pak-US strategic dialogue last year was a crucial step towards broadening relations.
The credibility of the US has been suffering for long when it comes to fulfilling its commitments towards Pakistan, according to analysts . They say the $7.5 billion assistance committed under the Kerry-Lugar Act was one such example.
Action Plan
Beran said the action plan agreed at TIFA will be implemented and will focus on diversifying agriculture production, promoting intellectual property rights and implementing the world trade organisation trade facilitation agreement. It also seeks Pakistan’s accession to the WTO government procurement agreement, conducting outreach to US state and local governments and increasing dialogue between the US and Pakistan private sectors.
“So far, Pakistani officials’ interaction is limited to the federal US government,” said Beran. “Leaving areas untapped in the US states that offer great opportunities for bilateral trade and investment.”
She said Pak-US bilateral trade stood at $5 billion last year, most of the Pakistani exports are of textile products. But one of the other areas of cooperation is agriculture, which has been identified in the action plan, she added. Pakistani dry mangoes could be exported to the US, offering a lot of potential.
She added that the US Department of Commerce and USAID will provide funds for the programme.
She also reiterated the US desire to see Pak-India trade relations improving. Pakistan and India have the potential of increasing bilateral trade to $5 billion and the US encourages normalisation of trade relations. But it is up to the governments when they want to move forward, she added.
BIT
Beran said the issue of signing the Pak-US Bilateral Investment Treaty was also discussed during TIFA meetings. The Pakistani side raised questions about the BIT which have been addressed by the US. “It is an ongoing dialogue and there was no major announcement at TIFA,” she added. She hoped that talks will continue, as the US was eager to sign the treaty.
GSP
Beran hoped that the package to give limited duty free access to Pakistani products to the US markets will be approved by the US Congress before end of this year. She said during the last GSP scheme Pakistan availed $131 million benefits on about 3,500 product lines.
Published in The Express Tribune, May 15th, 2014.
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COMMENTS (11)
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There is a big difference between aid and loans and bonds and etc. The USA issues bonds on a daily basis and one can say that it depends on domestic and foreign demand and relies on it--but that's clearly not the case. The target of every financial arm of a nation or a company is to have positive leverage (meaning that they expect to gain a higher rate of return from the investments made through loans, bonds, and etc issued at a lower borrowing rate). So, technically, unless you want to reside North Korea or some underdeveloped African nation, you are expected to borrow to fund your investments, especially since no Asian economy comes even close to holding a currency that has a reserve currency status or gold to sell (the English did rob the subcontinent of all her gold). I am a NYU Master Student in Finance currently
@Indian economist: Don't forget, india is still the largest receiver of international aid and alms in the world. Average Pakistani people are still far better off than Indians. Half of your population lives below poverty line and defecates in the open. So yea, quit trolling on Pakistani websites and do something about your country :)
I can go to Wikipedia and can write that Indian economy doesn't exist! Wikipedia is no authority. . In fact, students fail in British Universities if they rely on wikipedia (because it may change by the time references are checked). . But who can teach Indians who are so proud of their education?
@ Indian Economist: tell us something we don"t know. such a pessimist indians
@Indian economist: You do know anyone can edit Wikipedia right? So not everything on Wikipedia is fact.
This is like holding the head, of the Pakistani on the street, underwater and saying ...my, my, how well you swim.....untill he drowns.
“”Pakistani economy basically depends upon aids & loans”" : Indian economist
the white man has patted them on the back, surely this is headline news.
""Pakistani economy basically depends upon aids & loans"" :Wikipedia