WITH reports that Sept 11 attack on America will cause Pakistan $1.5 to 2 billion export loss and roughly Rs50 billion less revenue on account of declining imports, the government is hoping to secure a “better deal” from the US, bilateral donors as well as the IMF, the WB and the Asian Development Bank - thanks to siding with Washington.

The officials of the ministries of finance, commerce and economic affairs and the State Bank of Pakistan have reportedly finalised an assistance package to be sought from the US and other bilateral donors and international donor agencies.

Minister for Commerce Razzak Dawood is already in Washington and when this piece will appear on Monday, a high-level delegation led by Finance Minister Shaukat Aziz would have left for the United States. He was scheduled to leave on October 6 along with Governor State Bank Dr Ishrat and Secretary General Finance Moeen Afzal.

“We will be meeting with the World Bank/IMF officials and at the same time we are scheduled to have talks with the US Secretary of State and the Secretary of Treasury and we are hopeful to get a better package,” said the minister for finance. He told this correspondent that lifting of remaining economic sanctions against Pakistan will greatly improve its economy. However, Aziz declined to give any idea of quantum of aid by saying that every thing was still to be discussed and finalized.

Asked whether he was looking for $6 billion package beside getting $3 billion loans written off from the United States, he said that it would be pre-mature to comment on it at this stage and that unless he meets the concerned people, there can not be any idea about the quantum of assistance to be offered to Pakistan.

Governor State Bank Dr Ishrat Hussain when contacted said that the government wanted a long-term strategy to deal with its economic problems with the active support of the international donors and bilateral creditors. “I think time has come when we should not seek just loans but look for active trade and economic cooperation from the US and other western nations”, he said. He also said that foreign investment was an area which needed attention of everybody. He anticipated that in the long term there will be foreign investment and that USA and other donors will make sure that under the circumstances Pakistan was helped properly. The governor also expressed hopes that exporters will benefit from the recently announced facilities by the government to increase exports. “But I am more hopeful to receive increased remittances as the inter-bank rate and market rate of dollar has almost equalled”, he said adding that Pakistani banks operating in foreign countries have been directed to make sure now that Pakistanis send their remittances through banks instead of Hundi system.

Generally, official quarters are in an upbeat mood and do not rule out the possibility of a bigger package to be finalized during finance minister’s visit to the United States. Some experts have reportedly proposed to the government to seek write off of $5 billion loans from Japan and the United States. “The government should seek these loans be written off, and $18 billion loans given by the donor agencies rescheduled for a long period of time”, said an expert who is close to the government. “ Then we can seek 10 years moratorium during which no interest should be added into our debts”, he said adding that Pakistan now qualifies for seeking write-off of foreign loans as its debt and GDP have equalled. “In case we are treated as Highly Indebted Poor Countries (HIPC) which we are, we can get half of our foreign loans written off”, he said adding that time has come when Pakistan should ask for a quid pro quo with the US, West and Japan and “we should not commit the blunder of raising slogans like strategic defiance that isolated Pakistan in 1991.”