February 23, 2002	Saturday	Zilhaj 10, 1422

KARACHI, Feb 22: In the declaration the ICC has called for dialogue and consultations amongst all stakeholders for private sector participation in the reconstruction of Afghanistan (partly covered in our Friday’s issue).

The declaration has identified the stakeholders as private sector regional governments, local and international governmental and non-governmental agencies.

As press reports go, the $4.5 billion pledged by the international community and the IFIs is to be spent both through a World Bank Fund as well as on bilateral basis, by donors.

Some speakers at the conference also felt that while official support was essential, the Pakistani companies and business could participate better through the private sector channels in the reconstruction of Afghanistan.

Following is the remaining part of excerpts from Karachi Business Declaration:

4. Transport, Shipping and Logistics

* Immediate deregulation of rules governing private sector investment in the establishment of airports and ports and the simultaneous privatization by a combination of public subscription and private investors of all ports, airports and railway authorities.

* Ratification and implementation of the TIR Convention and the Istanbul Convention on ATA Carnet.

* All port and airport charges to be brought down to competitive levels.

* Apply to the International Committee on the North-South corridor for the inclusion of Pakistan.

* No restrictions on private sector freight and passenger trains operation in Pakistan tinder an open access regime with the determination of track gauge being entirely the prerogative of the investor.

* No restrictions on the participation of private sector local and international consortiums in the ownership, construction and development of roads.

* Immediate implementation of the Shipping Policy with full incentives and facilitation to encourage the ownership and operations of Pakistani merchant vessels.

* The immediate allowance and the establishment of a value basis for conversion of leased property into freehold property already in the use of private sector businesses in non-bonded zones in all areas affecting land, air and sea transport.

5. IPR and Copyrights

* The implementation of the Uruguay Round TRIPS Agreement on IPR and Copyrights must become a foregone conclusion. The blatant violation of IPR regulations in Pakistan has to be stopped with the implementation of effective enforcement of laws which protect copyrights. This is a fundamental requirement for encouraging foreign investment in many sectors and will facilitate overseas companies to outsource software development once they know that IPR regulations are not violated. Although all the laws exist, the implementation process has to be given utmost priority.

* The implementation of IPR and copyright laws and related regulations for all products should be centralized in one department.

* Appropriate training should be available to the judiciary and delays in court proceedings must be prevented in order to have effective enforcement. Trademark courts having judges who are experts in IPR laws should be established. Accordingly, law enforcement agencies have to be trained.

* Higher and very substantial penalties or fines for violation must be instituted with immediate effect.

* In order to safeguard development and standards in the pharmaceuticals sector and to encourage foreign and local investment, appropriate measures to deregulate the pricing structure imposed on legitimate pharmaceutical companies should be implemented. The current price control regime is not only leading to increase violation of patent and trademark laws but also dangerously lowering the standard of medicines available to the public.

6. Private Sector Participation in the Reconstruction of Afghanistan

* Increased pace of dialogue and consultation amongst all private stakeholders, regional governments, local and international governmental and non-governmental agencies.

* Institutionalized and appropriate facilitation by the Government of Pakistan for all philanthropic and social welfare organizations in Pakistan to be able to work in the rehabilitation of Afghanistan.

* Institutionalized facilitation to private local and foreign construction firms should be provided by the Government of Pakistan to participate in the reconstruction of Afghanistan.

* Interaction of the private sector with the political agents of the Federally Administered Tribal Areas should be formalized with immediate effect in order to initiate a closer understanding, obtaining an accurate assessment, closer access and appropriate facilitation for initiatives.

7. Arbitration

* In order for Pakistan to realize the goal of becoming a crossroad for trade and investment, it is necessary to ensure a legal and regulatory framework that is conducive to business interests by having in place a dispute resolution mechanism that must be inexpensive, speedy, transparent and accessible to all. Old laws have to be modernized to give confidence to foreign investors to invest in Pakistan. This is also important for the Pakistani business community who must have faith in the ability of the legal system to enforce contracts.

* The New York Convention 1958, which allows for arbitral awards arising out of mutually agreed contracts to be enforced in Pakistan on a reciprocal country basis, without allowing them to be challenged in the local courts, must be implemented without further delay. This is necessary for foreign and local investors because, in the event of litigation, they would want to have a decision implemented within a foreseeable timeline. By not implementing the New York Convention 1958 Pakistan continues to send the wrong signals to the international business community. The New York Convention 1958, is not only critical for improving the investment climate by encouraging foreign investment but will also result in enhanced exports.