ISLAMABAD, Jan 7: Pakistan will contribute $100 million in the donor-funded Afghan rebuild programme besides opening its consulates in Kabul and Jalalabad next week to take advantage of the emerging business opportunities.

The overall financing of $10 to 15 billion donors’ Afghan rebuild programme, required over a period of 10 years, would be finalized and announced at the two-day Tokyo conference being held from January 21. Finance Minister Shaukat Aziz would make formal announcement about Pakistan’s $100 million contribution in that conference.

This was stated here on Monday by deputy chairman, Planning Commission, Dr Shahid Amjad Chaudhry, Islamabad-based Pakistan’s ambassador to Kabul Arif Ayub and the World Bank’s country director Abid Hassan.

They were speaking at a conference on the “prospects for Pakistan’s trade and commerce in the reconstruction and development of Afghanistan” jointly organized by Ministry of Commerce, the World Bank and United Nations Development Programme (UNDP).

The conference was also attended by Pakistani and Afghan traders, exporters, businessmen, engineers and consultants. They pointed out a number of practical problems and hostile atmosphere besides some viable solutions.

Commerce Minister Abdul Razak Dawood, who presided over the meeting, told exporters and businessmen that most of the genuine problems raised by them would be addressed by the government, but made it clear that no government agency would help them in finalizing business deals like Trading Corporation of Pakistan does at home.

He assured the participants that he would hold in next few days a meeting with the State Bank of Pakistan and Finance Ministry to provide export credit, bank guarantees and institutional support for the businessmen and start their operations in Afghanistan.

The World Bank representative said that it would also come forward for providing risk guarantees for joint ventures and business operations through its agency MIGA when Afghanistan formally becomes the World Bank member.

The World Bank in its presentation told the participants that, according to its need assessment exercise, reconstruction in Afghanistan required around $10-15 billion in next 10 years. On the immediate basis, the presentation showed a requirement of $62 to 80 million for primary education, $40-50 million for power sector, $90-100 million for essential health, $100-140 million medical services, other than essential health, $500-100 million for water supply and $25-50 million for irrigation.

However, UNDP representative, Antonio Domini, said that all bilateral and multilateral donors would attend the Tokyo conference and it would become clear which Pakistani industry could play what kind of role in Afghanistan.

In this conference donor assistance would be sought, which would be based on these need assessments, and only then it would be possible to firm up a final figure of financial assistance. He emphasised that no reconstruction activity in Afghanistan could be possible without the participation of Afghan people and foreign assistance.

Dr Zareen Agha of the World Bank said that Pak-Afghan total trade amounted to around $2.5 billion of which $2.1 billion took place through smuggling.

Tariq Hameed of Export Promotion Bureau (EPB) advised the private sector that there were a lot of business opportunities in Afghanistan and adjoining Central Asian States (CAS) in many fields like medicines, health, education, construction but Pakistani would have to be very competitive while quoting tenders for products and services.

He advised them not to include overheads in their bids and take advantage of the proximity and communication links and ensure their presence in Afghanistan. He assured the participants that an inter-ministerial committee has been constituted that would sort out problems immediately.

Pakistan’s ambassador to Kabul told participants that emphasis should be given to reconstruction, development, communication and telecommunications. Recalling that Pakistan’s embassy in Kabul was ransacked for six times in the last 20 years besides attacks on its consulates in Mazar-i-Sharif, Kandahar, Jalalabad, Herat, he said that only two offices would now be made operational in Kabul and Jalalabad next week as talks with Afghan authorities were in progress for escorts and security.

He made it clear that there would be no big Pakistani staff in Afghanistan for next two years and there was no question of even thinking to open consulates in other cities even in Kandahar at least for the next six months.

He advised that businessmen and traders could develop their contacts with Afghan traders where they were unable to go physically.

A businessman suggested that warehouses should be established by EPB with the assistance of the World Bank at Chamman, Torkham and Jalalabad so that Afghan traders could come and lift the material from there quickly through continuous supplies.

Abdul Razak Dawood warned the exporters that government was now expanding the positive list of items to Afghanistan and finally there would only be a negative list so that all items could be exported except a few in the negative list.

However, he warned that the government come across that duty draw back for exports was being misused for bringing the material back home, the government would not go for enquiries and drop the item from the positive list straight away. An SRO to this effect would be issued soon as per the decision of the ECC of the cabinet last week.

The business community also raised a number of issues and made suggestions that the minister promised to take up with the inter-ministerial committee on Afghanistan.