WASHINGTON, June 26: Pakistan and the United States have signed a Trade and Investment Framework Agreement (TIFA) aimed at opening up US markets for Pakistani goods.

At a ceremony on Wednesday, watched by President Pervez Musharraf and senior US and Pakistani officials, the two countries also signed an agreement for cooperation in the field of science and technology.

“We in the United States realize that there can be no democracy without economic development,” said US Trade Representative Robert Zoellick after signing the agreement with Finance Minister Shaukat Aziz.

“It is the first step towards a free trade agreement...a goal that will bring stability and prosperity to Pakistan,” said Mr Aziz.

TIFA, as the name shows, provides a framework for the United States and the country desiring to enhance its presence in the US market to work towards that goal.

Several countries that are now major US trade partners began this relationship by signing this framework agreement first, ultimately leading to a free trade agreement. It takes about two to three years to a country entering the framework agreement to qualify for a free trade agreement.

“The US security relationship with Pakistan is important but economic ties are even more important,” said USAID director Andrew Natsios, who also addressed the ceremony at the Pakistan embassy in Washington.

“The United States wants to promote trade, investment, jobs and economic opportunities in the Muslim world, including Pakistan,” he said.

“TIFA is a foundation ... it will allow us to learn more about Pakistan...to support investment...and will also enable us to guide US businessmen interested in investing in Pakistan,” said Mr Natsios.

Mr Aziz said the current week had been productive in opening up new venues of cooperation between the two countries.

“The United States and Pakistan have been partners for decades and we want to expand this relationship for bringing progress and prosperity to Pakistan.”

Mr Aziz said that although the reforms introduced by the current government had already stabilized the Pakistani economy, the time had come for ordinary people to benefit from these reforms as well.

“We will be able to attract new investments, increase prosperity and reduce the level of poverty...only then the common people will know that the reforms are helping them as well,” he said.

Mr Zoellick said the US administration would help Pakistan achieve this goal. “Agriculture, information technology and energy are among the sectors where we can cooperate with each other,” he added.

The agreement for cooperation in the field of science and technology was signed by Foreign Secretary Riaz M. Khokhar and US Under Secretary of State for Global Affairs Paula Dobriansky.

“This agreement will allow technology transfer from the United States to Pakistan and for the training of Pakistani scientists and scholars in this country,” said Ambassador Ashraf Jahangir Qazi.