PRESS RELEASE

The Federal Minister for Commerce Mr. Humayun Akhtar Khan is on an official visit to the US till June 11th 2003. He spent a busy and productive day in Washington DC meeting US government officials and trade and business interests.

The Minister hosted a breakfast meeting for Undersecretary of State Mr. Alan Larson and Deputy National Security Advisor Mr. Gary Edson. Later in afternoon the Minister was hosted to a luncheon meeting by the US Chamber of Commerce to which members of major US multinational corporations and business interests were also invited. The last official engagement of the day was a meeting with US Secretary of Commerce Mr. Donald Evans. The Ambassador of Pakistan to the US, Mr. Ashraf Jehangri Qazi accompanied the Minister to all his engagements. The Minister concluded his day by meeting with Pakistani and Pakistani-American print and electronic media personnel at the Embassy.

In the Minister.s meetings with his interlocutors he stressed that international economic cooperation is critical for Pakistan.s economic security. He also said that Pakistan was encouraged by the focus the US administration has towards its economic needs. The Minister reiterated that the gist of the trade and commercial relations between the two countries should be such that the public of Pakistan should feel that the US is a long standing ally and is once gain standing by them. He emphasized that US.Pakistan trading relationship should be perceived from a national security point of view and that preferential tariff treatment coupled with job creation projects emphasizing small and medium enterprise development would result in enhanced visibility of the state-to-state relationship to man on the street. The US government officials expressed their interest in taking the bilateral trade and commercial relationship to a new level. They emphasized that debt relief coupled with Pakistan economic performance which had resulted in significant progress that now needed to be complemented with foreign investment, trade and promotion of small and medium enterprises. Both sides agreed that a new economic paradigm should be developed where assistance and public sector involvement is less relevant and trade and investment be made the main engines of economic growth. Among the plethora of issues raised and discussed by the Minister and his US counterparts the principal issue was the Trade and Investment Framework Agreement (TIFA) which was heralded as a first step in the process towards a Free Trade Agreement (FTA). TIFA was assessed as the basis of a long-term trade and commercial relationship between the US and Pakistan which would enable Pakistan to stand in the queue for a FTA. Other matters that came under discussion were intellectual property rights, cooperation in the WTO, preparing the trade sectors of both countries for a quota free era after 2005, future devolvement of a work plan for enhanced trade and commercial relations and US assistance in enhancing Pakistan.s industrial capacity.

In the Minister.s luncheon meeting with representatives of the US Clamber of Commerce, he dilated upon Pakistan.s trade potential, government.s commitment to an open trade regime symbolized by continued deregulation, privatization and liberalization of economy, provision of fiscal incentives, emphasis on high value added sector and need for export-led growth in a diversified manner. He also explained the level of development and potential of Pakistan.s textile sector. The representatives of the US Chamber showed keen interest in investing in the agricultural, telecommunications and service sectors of Pakistan. The members of the Chamber stated that publicity of Pakistan.s growth rates and economic news was encouraging. They also said that there was positive scope in further improving US-Pakistan commercial relations since they were confident that a practical approach would resolve mutual differences, which are not insurmountable to begin with. The Chamber was unanimous in asserting that the commercial and economic image of Pakistan in the US is good and growing. They agreed with the Minister for the need to engage Congress and enhance awareness of Pakistan.s trade concerns. The Minister advocated and his US counterparts fully concurred on the need for periodic and sustained interaction between US and Pakistani business interests and councils.

Washington DC
June 6th 2003