WASHINGTON, Oct 24: The United States has assured Pakistan that a law for giving duty-free access to goods produced at especially-designated areas in the NWFP will be approved by the end of this year.

At a day-long meeting at the State Department on Tuesday, US officials also told a high-level Pakistani delegation that they have made available $180 million to USAID for development works in Fata during the current fiscal year, which expires in June.

USAID will allocate money for various projects in collaboration with the government of Pakistan and the Fata secretariat.

On Monday, President Bush urged Congress to give additional $60 million for development of the tribal areas along the Pakistan-Afghan border.

The Bush administration has also assured Pakistan that it is committed to setting up reconstruction opportunity zones (ROZs) along the tribal region.

Goods produced at these so-called ROZs will have duty-free access to US markets.

But to do so, the US administration needs a new law, authorizing duty-free access to US markets.

US officials told the Pakistani delegation at Tuesday’s meeting that they will initiate the legislative process for making this law later this month or early next month.

Dr Salman Shah, economic adviser to the prime minister, who led the delegation at the talks, said the ROZs can also be set up in the settled areas of the NWFP and Balochistan and the earthquake-affected areas of Azad Kashmir.

The United States has already committed $750 million over five years to Pakistan’s Fata sustainable development plan.

Pakistan will spend $100 million each year for ten years under the two billion dollars programme.

Dr Shah said the United States and Pakistan are also drawing a framework to consolidate their economic relationship through enhanced private sector interaction and investment.

“There is a realisation that our strategic relationship should be underpinned by economic cooperation with a focus on bolstering private sector cooperation and achieving higher level of American business investment into Pakistan,” he said.

The two countries are expected to follow up the first round of economic dialogue with another session in Islamabad next spring.

In addition to a five-year $3 billion US assistance package for Pakistan, the two allies have also seen an upsurge in their investment and trade ties, with the United States being the largest investor in 2006-07.

“In our dialogue with the US administration, we urged them to help develop Pakistan as a manufacturing and outsourcing hub,” Dr Shah said.

“Pakistan must be viewed as a fast-emerging economy with unique demographic profile.”