ISLAMABAD, Sept 23: The Bush administration has assured Pakistan of concessional lending and increased American investment.

“The US Import and Export (EXIM) Bank has initially decided to make available $120 million for National Bank of Pakistan, United Bank Limited (UBL) and Muslim Commercial Bank (MCB) to help open letter of credits for exporters.” This was stated by Minister for Finance Shaukat Aziz on Monday.

Addressing a press conference, he said that he was leaving for Washington on Tuesday to discuss increased bilateral cooperation with the United States. “And this includes concessional US lending, writing off of $1 billion Pakistan debt and more market access for Pakistani products,” he added.

He said he would meet the top US officials including the Secretary of Treasury. “We are also expecting considerable budgetary support from the US government to have more resources for health, education and poverty alleviation.”

Aziz said that US Overseas Private Insurance Corporation (OPIC) has also decided to make available $300 million for its investors to cover risk factors. The OPIC, he said, would be further asked to increase its risk cover limits.

“Then we are hopeful to get substantial loaning from the Exim Bank to purchase 8 aircraft for PIA,” the finance minister said.

One of the major events during his 5-day stay in the United States, he said, would be the setting up of US-Pakistan Business Council for which 20 Pakistani businessmen would also be accompanying him. The US Chamber of Commerce will be extending all the support to set up this business council. Similarly, he said, matters pertaining to signing of Free Trade Agreement (FTA) between Pakistan and the US will also be discussed. However, he said, the talks would take about a year.

The issue of $317 million to be paid by the US government in connection with logistics will also come under discussion with the US authorities.

He said during his visit to the United States, he would hold separate meetings with the president of the World Bank, managing director of the IMF and the heads of IFC and MIGA.

Responding to a question the finance minister said that the government was considering to make it mandatory for all the government organisations to ensure that there was no involvement of kickbacks and commissions in any government purchase. “The matter is being started with PIA that it will have to inform whether any commission has been paid in connection with the purchase of new aircraft,” he added.

Pakistan Procurement Regulatory Agency, he said, has been asked to take up the issue and make sure that all procurement deals were transparent.

He told a reporter that all the four provincial finance ministers of the provinces have been given the draft of the proposed NFC award, which would be finalized at a Lahore meeting during next two weeks period. He said the provinces share has been enhanced to 44.6 per cent against the existing 36.5 per cent shares.

Aziz said that issues relating to hydel profit, 2.5 per cent General Sales Tax (GST) and subvention were needed to be worked out to finalize the 6th NFC award. The broad consensus, he said, has been achieved as issue was also discussed between the president and the all four provincial governors.

To a question, he said that foreign exchange reserves have reached to $7.7 billion and would cross $8 billion in a few weeks time.

Asked why the Privatisation Commission has decided “not” to privatize Pakistan Telecommunication Company Limited (PTCL), he said it was not particularly discussed in the meeting of the Cabinet Committed on Privatisation (CCoP) on Monday.

However, he said, others planned transactions including PPL and OGDCL will be brought in the market soon.