PRESS RELEASE

The Federal Minister for Commerce Mr. Humayun Akhtar Khan on the second working day of his official visit to the US spent a productive day in Washington DC.

Earlier, over the weekend, on Saturday June 7th the Ambassador of Pakistan to the US, Mr. Ashraf Jehangir Qazi hosted a luncheon meeting for the Minister at the Embassy. The event was well attended by the Pakistani and Pakistani-American entrepreneurs and business community as well as officers of the Embassy. On Sunday June 8th The Minister again informally met with a wide cross-section of the Pakistani and Pakistani American business community in the Greater Washington DC Metropolitan Area. In his remarks to the community and the subsequent question and answer session, the Minister highlighted the economic reforms of the government, commitment to the principles of a laissez faire economic model, comparative advantages of the country.s various export sectors, unprecedented crossing over of the $10 billion export target for the first time in the country.s history, open trade policy of the government, incentives to attract FDI, guarantees offered to protect private investment from nationalization and need for overseas Pakistanis to invest in Pakistan. The Minister also enunciated the policy of the government to enter into a long-term and mutually beneficial trade and investment relationship with the US.

Today, the Minister was hosted to a luncheon meeting by the US-Pakistan Business Council where leading intellectuals from various think tanks such as the Middle East Institute, Council on Foreign Relations, and United States Institute of Peace, representatives of major US multinational corporations and business lobbyists were also invited. In the afternoon, the Minister met with US Trade Representative (USTR) Ambassador Robert Zoellick and Congressman Sanders Levin, Ranking Democrat (from Michigan), Member House Ways and Means Committee and Subcommittee on Trade (Textiles). The Ambassador of Pakistan to the US, Mr. Ashraf Jehangir Qazi accompanied the Minister to all his engagements.

In the Minister.s meetings with the US-Pakistan Business Council, USTR and Congressman Levin, he explained Pakistan.s trade policy, government.s efforts to have the effects of the trade policy trickle down to the common man, steps undertaken to focus on compliance such as environmental and labor issues, commitment to WTO and plans to prepare of an era beyond the Multi-Fiber Agreement. The Minister specifically mentioned the international competitiveness of certain categories of Pakistani textiles and woven garments and the role that Small and Medium Enterprises (SMEs) could play in further enhancing the export potential of the country. The basic thrust of the Minister.s argument was that export growth should be tied to employment and job creation.

The US interlocutors of the Minister were appreciative of Pakistan.s reform process and trade policy and offered to look at any issues that Pakistan placed on the table. The matters discussed between the two sides included Pak-Afghan trade, political situation in Pakistan, TIFA (Trade and Investment Framework Agreement), cooperation in the WTO, assistance to develop SMEs, patent laws and intellectual property rights and efforts to assist Pakistan diversify its export portfolio. Both sides agreed to increase the pace of negotiations on TIFA, which would provide a framework for closer economic cooperation and that signing of TIFA will be a breakthrough in the commercial relations of the two countries. The USTR also stated that there was need for closer bilateral commercial, trade and economic interaction at various levels in addition to that at the multilateral level. There was also convergence of views on that idea that TIFA would enhance mutual understanding of each other.s economies and deepen the existing commercial relationship. The US Small Businesses Administration was also seen as a viable way of assisting the development of Pakistani SMEs. The US government representatives assured the Minister that the US would be receptive to Pakistan.s concerns and offered to keep open lines of communication and regularly meet Pakistani officials.

Washington DC
June 9th 2003