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LAHORE, Jan 20: Pakistan is expected to join the South Asia Regional Energy Initiative (SAREI) at the South Asia Energy Forum to be hosted by the US Chambers of Commerce (USCC) in Washington in two months' time.
"Pakistan will soon be invited to join the initiative which aims at making a cooperative effort for energy development in this region," the USCC managing director for South Asian Affairs Dr Herbert Davis told businessmen at the Lahore Chamber of Commerce of Industry on Tuesday. LCCI president Mian Anjum Nisar welcomed him and called for increasing business ties between the two nations.
Dr Davis, who said the American businessmen were looking at Pakistan as a partner in business development in various areas, did not elaborate much on the SAREI. However, he said, the US was particularly interested in the development of energy sector (in South Asia).
He said American companies were also keenly interested in investing in infrastructure development and business cooperation in consumer goods, financial services, IT, pharmaceuticals and other areas with their Pakistani counterparts.
Dr Davis, who said his organization represented 3.5 million US companies and enjoyed very close and strong relationship with the American government and politics, claimed that the USCC was taking a particular interest in South Asia because the region, with a very large population and diversity, would become a critical market in future. Hitherto, he said, the region had never been a prominent destination for foreign investment.
TIFA: He said the USCC had been working with Islamabad and Washington on the Trade and Investment Framework/ Facilitation Agreement singed in June as an advocate of the American business and free trade.
He said TIFA was the first step towards Free Trade Agreement (FTA) between the two countries. But, he cautioned, the process of moving from TIFA to FTA was "indefinite", although it could be accelerated. Washington has so far signed TIFA with Sri Lanka and Pakistan in the South Asian region.
At the same time, Dr Davis warned, political difficulties could also mar it and make it slow down as had been the case with Sri Lanka. "Once the momentum is lost, it will become difficult to escalate the process," he said.
He also warned his audience that the American business would carefully look at the country's regulatory framework, rule of law and issue of intellectual property rights (IPRs), and investment policy before advocating for FTA between the US and Pakistan. "We support free trade with certain conditions," he said.
BUSINESS DELEGATION: Mr Davis said the USCC was putting up a delegation of American companies which was expected to visit Pakistan on March 14-18.
He underlined the need for strengthening the US-Pakistan Business Council established by the US Chamber of Commerce in order to attract American investment in the country.
"The US investment in Pakistan is relatively small. We will like it to pick up. When we go back, we will tell the US business that Pakistan is a safe and friendly country to be in," he said.
INDO-PAK TALKS: Dr Davis welcomed the recent agreement between Pakistan and India to resume peace talks for resolving their issues.
