April 1, 2003	Tuesday	Muharram 28, 1424

ISLAMABAD, March 31: Pakistan has allowed Afghanistan to import eight more banned items including cotton yarn and polyester under Afghan Transit Trade (ATT) arrangements.

“We have decided to further thin our negative list from 24 to 16 items to greatly help Afghanistan”, said Prime Minister’s Adviser on Finance Shaukat Aziz.

Speaking at a news conference after having attended a two-day meeting of the Joint Economic Commission (JEC) of Pakistan and Afghanistan at Kabul, he said on Monday that the Commission will meet three times a year to substantially increase trade and economic cooperation between the two countries.

Giving the details, he said the items which had been removed from the negative list were cotton yarn, polyester, juicer mixer, ball bearing, video cassette, audio cassette, VCP and timber.

A decision, he said, has been taken to gradually do away with the negative list. “In this regard both sides are considering to have some unified tariff”, Shaukat added.

He also said that Pakistan, Afghanistan, Turkmenistan, Uzbekistan and Tajikistan will soon be establishing their “joint power grid station” to buy and sell electricity to each other.

“The World Bank is likely to finance this huge project”, he said adding that President Hamid Karzai of Afghanistan has proposed to have this grid station.

Responding to a question Aziz said that trade through ATT have increased by 15 per cent. “But overall trade has been up by 100 per cent between the two countries”. He said that Pakistan Railways has reduced by 22 per cent its freight charges for goods to be exported to Afghanistan.

Aziz said that a decision was also taken during JEC meeting that Gwadar port at Balochistan will provide access to warm waters in the Arabian sea to all the Central Asian States and Afghanistan.

The Asian Development Bank (ADB), he pointed out, will shortly hold a meeting to form a regular coordination group to use Gwadar port for investment and storage purposes by the Central Asian States.

He told a reporter that Pakistan has decided to convert all its $100 million assistance for Afghanistan into grant. Earlier, there was 50 per cent grant and 50 per cent soft loan.

He said that Pakistan had previously offered $20 million to Afghanistan and now the remaining $80 million will be extended in four equal instalment every year to Afghanistan. “Then we have decided to separately extend $5 million to Afghanistan as part of the commodity assistance”, Aziz said.

The adviser on finance said Pakistan financial assistance will also be used for constructing Turkum-Jalalabad road for which NESPAC was currently doing a survey. Some of the funding, he said, will be offered for improving health and educational facilities in Afghanistan.

“We also plan to help Afghanistan in improving its police and banking system”, he said adding that National Bank of Pakistan will soon be opening its first branch in Kabul.

He said a decision has been taken that PIA will have three weekly flights from Islamabad to Kabul. Earlier, he said there were only two flights. “Then there is a plan to start PIA flights from Quetta to Kandhar and Peshawar to Kabul”, Aziz added.

He said that Pakistan has offered support to improve postal services in Afghanistan for which a Pakistani delegation would soon be reaching Kabul. “Our Micro Finance Bank (Kushhali bank) will help Afghan government to offer small loans to the people of that country”.

In reply to a question Aziz said that President Hamid Karzai has directed the concerned Afghan officials to remove all kinds of problems being faced by Pakistani businessmen.

He said Pakistan was having its due share in the reconstruction of Afghanistan. He said a number of countries were competing to get good business in Afghanistan. “And you will be surprised to know that one Pakistan company — Echo West — has won a first major contract worth $25 million for the construction of Chamman-Jalalabad road”, he said.

Asked about trade volume, he said Pakistan has exported goods worth $120 million to Afghanistan during the first seven months of 2002-03 against $160 million of whole 2001-02. “Our two-way trade is expected to reach $225 million next year which also includes $30 million Afghan exports to Pakistan”.

He expressed ignorance about the US decision to introduce ban on Pakistani exporters. “I have no idea about it”.

Asked how could there be any greater business activity in the presence of continued political instability in Afghanistan, Shaukat said that the US and western countries have decided to spend $2 billion in that country during April 2003 to April 2004. “I believe this decision will immensely boost trade and economic activities in Afghanistan”, he said.