US aims to deepen economic ties

Consul general highlights $7b trade, potential for growth across multiple sectors

KARACHI:

The newly designated US Consul General in Karachi, Scott Urbom, paid a maiden visit to Pakistan Stock Exchange (PSX) on Thursday, apparently aiming to reach out to the country's business community and show his commitment to strengthening trade and economic ties between the two countries.

To recall, Washington has vowed to assist the South Asian nation in resolving its energy crisis but warned it of the potential consequences of Pakistan-Iran gas pipeline project last month.

In his brief address at the capital market, the consul general said the United States was committed to economic partnership with Pakistan. "I am really looking forward to working with all of you to strengthen our partnership and learn how we can promote equitable and sustainable growth that benefits both of our nations."

He said there was enormous potential to invest in Pakistan and expand the economic partnership in several areas, from healthcare to waste management, information technology, clean energy and agriculture.

PSX may see the listing of more US firms in the future, he said after hitting the trade opening bell at the bourse in the morning.

Urbom said he arrived in Karachi at the end of August as the new US consul general and he is truly enjoying this vibrant city. "In many ways, Karachi is the heart of Pakistan's economy."

He said he was glad to visit the PSX early in his tenure. "The United States and Pakistan enjoy a strong economic bond, and one of my goals as the consul general is to further strengthen our economic ties."

He said the United States and Pakistan had about $7 billion in trade last year and the US was Pakistan's largest export market. It was also one of the largest sources of foreign investment in Pakistan.

Data, however, suggests that trade dropped significantly in 2023 compared to around $9 billion in each of the prior two years (2022 and 2021). Pakistan's exports to the US stand at two-thirds of the total trade volume between the two nations, while imports stand at around one-third.

US companies stand out for their strong corporate citizenship. They are one of the largest employers in Pakistan, paying a generous portion of taxes and carrying out a lot of corporate social responsibility programmes.

"Many of those US companies are listed on the Pakistan Stock Exchange. I hope to see that number grow as more US companies come to Pakistan and establish operations," he said.

"But I think there's enormous potential here to do more, to expand this partnership in a number of areas, from healthcare to waste management, information technology, clean energy and agriculture. The list goes on."

In his welcome address, Nadeem Naqvi, Acting CEO of PSX, stated, "We are very pleased to have the leading representatives of US-based companies functioning in Pakistan today."

He highlighted the crucial place of Karachi in Pakistan's economy as a city of 24 million inhabitants where both demand and supply of goods and services was a key attraction for local and foreign companies.

Speaking on the occasion, Dr Shamshad Akhtar, Chairperson PSX, while giving an overview of the national economy, talked about the vital role played by the exchange in terms of capital formation and wealth creation.

She stated, "We would welcome investment in the stock market from US-based investors and fund managers, as well as from US-based companies in Pakistan, especially on the back of the excellent performance of the exchange as witnessed over the last fiscal year and it is still going strong."

"We are ready to extend all our support to any such efforts from the investors and fund managers from the US. I would hope that more investors and portfolio managers from the US look at the Pakistani stock market, given its attractive valuations and potential for competitive returns in the long run."

She added, "We look forward to more US-based companies in Pakistan opting for listing at PSX, increased investment from the US in Pakistan, and enhanced trade between Pakistan and the US with greater export avenues being explored between the two markets for mutual benefit."