August 17, 2002	Saturday	Jamadi-us-Saani 7, 1423

ISLAMABAD, Aug 16: Pakistan and Thailand have agreed to work together to expand trade between the two countries by increasing imports of potential products from each other.

This was decided during the Second Session of the Thai- Pakistan Joint Economic Commission held in Bangkok on Friday, the details of which were released here by the ministry of finance.

The Thai side acknowledged the need to offset the trade imbalance. Pakistani side urged Thailand to increase imports of raw cotton, cotton yarn, fruits, carpets, surgical instruments, textiles, textile products, raw material, consumer goods, fabrics, clothes, precious stones, hand-knotted carpets, furniture, handicrafts, cotton made-ups and sport goods, machinery and engineering merchandise from the State Engineering Corporation and Heavy Mechanical Complex (HMC) from Pakistan.

The Pakistan’s delegation was headed by the Minister for Finance Shaukat Aziz while the Tahi side was led by Dr. Surakiart Sathirathai, Minister for Foreign Affairs of Thailand.

In his opening remarks the finance minister expressed the strong desire of Pakistan for expanding bilateral relations with Thailand. He said there was great room for cooperation in a number of economic areas.

He said the government was ready to assist Thai businessmen desirous of exploring Pakistani markets through joint ventures with local investor.

During the main session the two sides expressed disappointment at the current low levels of trade and investment between the two countries. The joint trade in 2001 amounted to $233.7 million in 2001, while Pakistan’s investments in Thailand stood at $25 million while Tahi investments in Pakistan were $10 million. There was an agreement that these levels were not commensurate with the level of economic cooperation that the two countries can potentially generate.

The progress on implementing the concept of Account Trade was reviewed. The concept, which was initially agreed between the Commerce Ministers of two countries during WTO meeting at Doha, would conserve the use of foreign exchange by both countries by facilitating single adjustment entry at the end of each year, while payments to exporters will be made by the central bank of two countries in local currency.

The finance minister assured Thai authorities that the necessary agreement between the National Bank of Pakistan and EXIM Bank of Thailand would soon be concluded. Furthermore, to the Thai proposal to expand the scope of Account Trade to include the larger frame work of Counter Trade will be carefully examined and a response will be provided soon after the detailed concept was received by Pakistan.

Pakistan assured the Thai authorities of its cooperation in their proposal for establishing forum of rice exporting countries that would help stabilize the world rice market. In this regard, the forthcoming meeting scheduled in Bangkok in the third week of August will be attended by the Commerce Minister of Pakistan.

The attention of the Thai authorities was drawn to stringent restrictions the exports of fruits and vegetables faced in Thailand. Pakistan was assured that matter will be given active consideration and any undue restrictions will be removed.

Both the countries had strong potential for joint ventures included agriculture (shrimp hatchery, livestock, and corporate farming), food and fruits processing industry, fisheries industry, textiles, automobile spare parts, air-conditioning, chemical industries, aviation related services,and real estate development and construction.

The Thai side noted that Pakistan could be a suitable production base and business hub for Thai investors and SMEs and well as a transit place for Thai merchandise for markets in Afghanistan, Middle Eastern and Central Asian countries. Both sides also agreed to cooperate closely in the reconstruction of Afghanistan. Joint ventures between the two private sectors in construction of infrastructure, machinery maintenance and trade in consumer goods and other merchandises with Pakistan’s neighbouring countries and countries in South and Central Asian regions is also a promising passability.

With a view to furthering the investment ties between the two countries an MOU was signed on investment promoting by the respective Boards of Investments.

The recent difficulties faced by Pakistan businessmen in obtaining visa for Thailand was also brought to the notice of the Thai authorities. Pakistan was assured of a favourable consideration in this regard. In particular, the Foreign Minister indicated that proposal to allow long term multiple visas to Pakistani businessmen was under consideration and a policy decision will soon be taken for this purpose. He said it will give a major impetus to business relations between the two countries.

Pakistan offered Thai business entrepreneurs and public sector to participate in infrastructure development projects such as expansion of Karachi port and development of Gwadar port, national highways, and railways. The Thai side expressed strong interest in these projects in the context of its larger interest to participate in the reconstruction work in Afghanistan.

Both sides also agreed that cooperation in aviation field was bright especially in the ares of code sharing, complementing networks, freight services, training facilities,sharing of maintenance facilities and catering.

The two sides also discussed a number of proposals for cooperation in the fields of education , science & technology, information technology, agriculture and livestock, the establishment of cold-chain and food grain storage facilities, corporate farming and food, vegetable and fruit processing industries, export of skilled labour and manpower, tourism, cultural and youth exchanges, population welfare and water & power.