ISLAMABAD, Sept 20: The United States has promised to offer Pakistan new market access and help it attract American investment but urged the government to create investment-friendly environment in the country as an essential pre-requisite.

Official sources told Dawn here on Saturday that during 2-day visit to Islamabad, US Treasury Secretary John Snow said American economy despite achieving 3.1 per cent GDP growth rate in the second quarter was still facing a lot of problems.

However, he said that Bush Administration would very much like to consider Pakistan’s request for increased market access. He said he would personally make sure that Pakistan was granted increased market access specially for its textile products before January 2005 when the new WTO regime would be enforced bringing the system of textile quotas to an end.

Sources said that Mr. Snow was given presentation by six ministers including finance, commerce and education. Commerce Minister Humayun Akhtar raised the issue of market access which, he regretted, has not increased adequately despite assurances by the US government.

Similarly, Finance Minister Shaukat Aziz asked Mr. Snow to help remove negative travel advisory for the US investors in Pakistan. He said Pakistan government received a number of new investment proposals but whenever US investors wanted to come to Pakistan, the US government issued negative travel advisory, which was discouraging new investment in Pakistan.

Mr Snow replied that currently there were 57 American investors who were doing business in Pakistan and expressed hopes that their number would increase as the Bush Administration will shortly ease travel advisories for Pakistan.

He agreed that there was a plenty of scope for joint ventures between the private sectors of the two countries provided hurdles like negative travel advisory were removed as early as possible.

Sources said that the US treasury secretary assured all possible support to Pakistan in its pursuit of new investment. However, he said that although law and order situation has greatly improved, still in his opinion a lot was needed to be done to encourage adequate flows of foreign investment in Pakistan.

Mr Snow said that US economy was expected to achieve 4 per cent GDP growth rate during third and fourth quarter which, he added, will help it to extend more financial support to the developing countries including Pakistan.

“Japan and Europe’s economies are still stagnating and as such US growth is essential for the rest of the World,” John Snow was quoted as having said.

The sources said that the US treasury secretary was particularly concerned about the involvement of some individuals and groups who were allegedly funding terrorist networks. Nevertheless, he was satisfied after Governor State Bank Dr. Ishrat Hussain gave a detailed briefing over the issue.

Mr Snow was told that the central bank and the Security Exchange Commission of Pakistan (SECP) were implementing a new strategy to discourage dubious banking transactions. In this behalf the early framing of an anti money laundering law was discussed threadbare between the two sides.

The sources said that the issue of $1.5 billion grant out of total of $3 billion funding promised by Bush Administration did not come up for discussion. “This issue will be discussed during Prime Minister Mir Zafarullah Khan Jamali’s visit to the United States,” a source said adding that the government has, however, finalized the priority areas on which it proposes to spend the economic assistance. The focus, they said would be mainly on poverty alleviation, health and education.

Sources said that the finance minister also briefed the US secretary of treasury about the government’s plan to enter into the bond market by floating bonds amounting roughly to $500 million by December this year.

“We are delighted that you are entering into the capital market and this is a remarkable achievement,” he was quoted as having said. “Good monetary policy requires good fiscal policy and budgetary discipline and we are delighted that you are introducing fiscal responsibility law in Pakistan,” he further stated.