ISLAMABAD, Sept 24: Pakistan and the United States have decided to develop a new economic framework to broaden cooperation in bilateral trade, investment and infrastructure development.

“After having developed a political framework, time is for developing a new economic framework between the two countries aimed at providing substantial financial support to Pakistan,” Prime Minister’s Adviser on Finance Dr Salman Shah told Dawn on Monday.

He said a five-member high-level delegation, to be led by him, will leave for Washington on October 17 to hold “strategic dialogue on economic issues” with senior US officials. The prime objective is to effectively promote trade and economic

relations between the two countries.

One of the important efforts, Dr Shah said, is to double US investment in Pakistan from $1.7 billion to $3.4 billion within next two years for which Bush administration has assured to greatly facilitate the American investors in Pakistan.

Pakistan has successfully attracted an all time high $1.7 billion US investment in 2006-07, which needed to be further enhanced, he added.

“We hope to have substantial US investment in infrastructure projects and increased assistance for the development of Balochistan and Federally Administered Tribal Areas (FATA),” Dr Shah said adding that Pakistan currently required massive investment to improve its old and fragile infrastructure.

“Without improving this infrastructure we cannot sustain our economic development”, he said hoping to have an enhanced cooperation during 2007-08 between the two sides in the infrastructure field.

The adviser did not believe that in the absence of the much-delayed Bilateral Investment Treaty (BIT), there would be any problem to attract sizable US investment in Pakistan. “This investment from the American side is already taking place and only needs to be enhanced significantly,” he said.

Responding to a question, Dr Shah said that unfortunately trade and economic relations between Pakistan and the US did not greatly improve over the years as were the political relations. “But now this is the decision of both the governments to substantially enhance economic cooperation and this will be very good for Pakistan”.

To a question he said that the US government had expressed its willingness to provide considerable assistance for the development of Balochistan and FATA, particularly to promote education and health activities there.

During the visit, he said, Pakistani delegation will also have annual consultation meetings with the World Bank and the International Monetary Fund (IMF) in Washington.