WASHINGTON, Nov 29: Commerce Minister Humayun Akhtar Khan on Monday evening said the reforms process in Pakistan “will continue”. While multilateral and bilateral trade relations will take their own course, he said, the government of Pakistan would focus on continuous economic reforms and liberalization of the economy.
Addressing a seminar at the Institute for International Economics, the minister pleaded for a reduction in barriers for conduct of business.
In Pakistan, he said, the government’s focus was now to develop manufacturing and services capabilities through a competitive environment. “We are in the process of compiling trade competitiveness indicators for the economy which will internationally benchmark the cost of doing business in Pakistan.”
“We have made unilateral liberalization of trade an important economic policy objective and will continue to pursue an agenda to provide economic freedom and reduce barriers for the conduct of business.”
On multilateral talks, the minister said Pakistan’s foremost interest was to ensure a rapid progress in multilateral negotiations. With the Hong Kong ministerial conference just a week away, he said: “It is an opportune moment to recall our objectives. We support rapid reduction in global trade barriers.”
“Pakistan favours ambitious reforms in agriculture trade through reduction in domestic support, elimination of export subsidies and substantial tariff reduction.”
He said Pakistan was part of the G-20 coalition “which we consider a forum that is in line with DDA objectives as a platform for high ambition level in removing barriers to trade in agriculture”. In non-agriculture goods, he said Pakistan hoped to see a major reduction in tariffs, especially those that “address tariff peaks in products of interest to us”.
“This is particularly important, as Pakistan does not belong to any major regional trade group. We hope to maintain similar ambition level in the area of services.” He said Pakistan had particular interest in tightening of rules for anti-dumping.”
“We hope that all member countries of the WTO will keep their focus on the significant long-term benefit of trade liberalization and not succumb to the path of least resistance and give in to special interests.”
INVESTMENT TREATY: The commerce minister said Pakistan and the United States were currently negotiating a bilateral investment treaty (BIT).
Mr Khan said: “It is a do-able thing.” He proposed that a time limit be put on the negotiations, as it would help negotiators move quickly.
Besides Pakistani Ambassador Jehangir Karamat, those attending the seminar were noted economists and institute’s experts Shahid Javed Burki, Gary Hufbaur, Marcus Nolad, Gregory Sadowski, John Williamson, as well as Beth Stewart and Arshad Gilani of General Electric Corporation, Haroon Cheema of Merck & Co, and James Walker of USAID.
MEETING: Commerce Minister Humayun Akhtar Khan held a meeting on Monday with US Commerce Secreatary Carlos Gutierrez at the Commerce Department.
They reviewed progress made in respect of bilateral arrangements for the promotion of trade.
EUROPEAN GSP: The commerce minister on Sunday said Pakistan would be part of the European Generalized System of Preferences (GSP) from January 1, 2006.
Replying to a question on market access to Europe, Mr Khan said: “This GSP will cover almost hundred per cent of our products that we export to Europe.”
“All our products will get concessions — textile and clothing will get a 20 per cent concession,” he said, adding that other non-textile and clothing areas will have a 3.5 per cent cut in duties.
“So, we are part of the European GSP. We have GSPs with America too, but these do not cover textile — that is the fundamental difference between European GSPs and American GSPs.”
Replying to a question about progress in respect of the matter of Intellectual Property Rights raised by the US in the past, the minister said: “There are major improvements in intellectual property rights. We have all the legislation in place; we have the organization — the Pakistan Intellectual Property Rights Organization — to oversee copyright, trademark and patent protection issues.”
About the Trade and Investment Framework Agreement (TIFA), Mr Khan said the last TIFA meeting took place in Washington in September 2004, and “we will be talking about fixing a date for the next meeting.”—APP
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