ISLAMABAD, July 18: The United States is sending a team to Pakistan next month to finalise arrangements for establishing ‘reconstruction opportunity zones (ROZs)’ along the Afghan border, through which products will be allowed into America without duty.

“An important USAID team will be here in August to finalise the list of products to be allowed duty free access into my country through these zones,” said visiting US Assistant Secretary of States for Economic and Business Affairs Daniel S. Sullivan at a news conference on Tuesday.

He said that under the strategic partnership that started with President George W. Bush’s visit to Pakistan in March various ways and means were being explored to deepen economic relations between the two countries.

One of the very significant initiatives agreed between the two presidents was the setting up of the zones, he said.

However, he said the issue of allowing duty free access to Pakistani products was yet to be decided by the US Congress. “This requires legislation by the new Congress to be elected and we hope the ROZs issue will be okayed in next spring.”

He said he did not know whether textile products to be produced in the zones would be allowed duty free access in the US.

The US assistant secretary of state said he had also visited some places in the Federally Administered Tribal Areas to observe various development activities started by the government.

He said he was visiting Pakistan as a follow up to the visits of President Bush and Secretary of State Condoleezza Rice.

He said he had held wide ranging discussions with Pakistan officials on promoting trade and economic relations and helping Pakistan meet its growing energy needs.

The energy working group of the two countries, Mr Sullivan said, had made a lot of progress aimed at helping Islamabad meet its energy needs through renewable resources, coal etc.

Nevertheless, he said, he had not discussed with Pakistani officials the issue of offering nuclear energy for civilian purposes. “India is a unique example of having this energy cooperation from the US,” he said.

Responding to a question, he said negotiations between two countries were continuing on signing the bilateral investment treaty. When asked about obstacles in the way of early signing of the treaty, he said: “I cannot talk about those impediments.”

In reply to a question, he said his country was playing a lead role to cut tariffs and subsidies under the Doha round of talks. “We have given ambitious proposals to cut tariffs for agriculture, industry and services sectors,” he said.

He said it was good to see that Pakistan achieved 6.6 per cent growth rate in 2005-6. “Before that Pakistan achieved eight per cent plus growth rate and this is quite an achievement,” he said.

He said he had visited Muzaffarabad and Balakot to see the earthquake reconstruction activities. “And I am highly impressed and moved by the commitment shown by the people working there,” he said, adding that the US had contributed $500 million for the rehabilitation and reconstruction activities.

In reply to a question, Mr Sullivan said Pakistan’s private sector had to take a lead in achieving a better growth rate. In this regard, he referred to his meetings with the private sector people and said they were doing a significant job to set up industries to reduce poverty in the country.