KARACHI, Nov 4: The re-election of George W. Bush is viewed as a positive development for Pakistan by the business community. A change in the US administration could have created an uncertainty. The continuation of the current administration, with which Pakistan enjoys a certain level of understanding, may help the country pursue its economic agenda, maintained representatives of the business community.
However, businessmen and industrialists now seek more market access, duty concession from America and joint ventures with US companies in view of free-trade regime from January 1, 2005 when developing countries are required to operate in an un-even playing-field. They think it is the right time that Pakistan should again press to seek new business avenues and cut in duties with the United States.
"We may get the market access after December 2004, but we demand a cut in customs duty from America on import of Pakistani products, especially textiles so that our products could become competitive," FPCCI Vice-President Haroon Rashid said. When the US can give duty concessions to Bangladesh and Jordan then why not to Pakistan, its closer ally and a front-line state in combating terrorism, he said, adding that the US could consider giving duty concessions and other incentives as it has a soft corner for Pakistan.
"The US should also grant the most favoured nation status to Pakistan," he said, urging the US government to stop giving negative travel advisory to its nationals. He also called for opening of commercial section office in Karachi.
He expressed the hope that both economic and political relations with Pakistan would improve further following the victory of President Bush.
Site Association of Industry Chairman Mohammad Nisar Sheikhani said when the US could think of signing free trade agreement (FTA) with various countries then Pakistan should be on its list. "Pakistan's firm commitment with America in its war against terrorism should now bear fruits. America has bracketed Pakistan in the category of combating terrorism activities instead of providing a level-playing field in trade and business which the US is offering to other less developed countries," he said.
Mr Sheikhani said President Bush was expected to maintain its policy on Pakistan. He said that textile industries were heading for closure in the US and Pakistani industrialists are ready for joint ventures. "The Bush administration should ask these industries to seek new business avenues with Pakistani entrepreneurs in order to further foster trade ties between the two countries.
KCCI acting president Mian Abrar Ahmad said President Bush will continue its previous economic and political policies with Pakistan. "The business community now wants more market access for textiles products to America," he said while referring to the significant period after dismantling of the multi-fibre agreement (MFA) and enforcement of the WTO regime from January 1, 2005.
He stressed the need for more joint ventures with American companies so that economies could flourish, addressing the problem of unemployment. "Pakistan needs a major breakthrough for its products in the US," he said.
FPCCI Vice-President and in-charge of WTO Resource Centre of FPCCI M.A. Jabbar said investment criteria by US investors for overseas investments needed to be relaxed as they cover too much to comply with. He said the US should also help Pakistan in upgradation of infrastructure to implement intellectual property rights which had remained a matter of serious concern for the US.
In addition, the security of export cargo and many other measures for smooth flow of merchandise to the US also require grants and technical assistance so that Pakistan continues to have access to the US market with compliant position, he adds.
Mr Jabbar said that existing economic and political relationships between the two countries should be strengthened. "The bilateral investment treaty should continue to help Pakistan grow faster, reducing poverty and increasing prosperity level of the people of the country. The areas which require a better relationship are textile, IPR, cut in tariffs, the service sector and WTO related matters."
Mr Jabbar said an access to the US market for leather goods and other similar non-traditional items with relaxation in non-tariff barriers will help Pakistan improve its economy. Pakistan, he added, was making concerted effort to attract US investments and make the country a favourable destination for American financiers and entrepreneurs in areas like IT, small and medium industries, oil and gas exploration and agro-based industry.
Mr Jabbar recalled that the Trade and Investment Framework Agreement signed in June 2003 providing a forum for Pakistan and the US to consider expanding bilateral trade and investment, required to be steered for its result orientation to provide better market access for Pakistan.
He said the recent agreement to consider bilateral investment treaty also required converting into working partnership to attract US investments for exploring the wealth - minerals, oil and gas - in Pakistan. The power sector and its development could also attract US considerations by providing long-term soft loans.
Mr Jabbar said the elimination of agreement on textile and clothing with free for all to sell textile products in the US market would create challenges for attempting to pick up the increased share of opportunities. "The US market has a considerable absorption and our products and made-ups of textile require market access in such a way that the entry price of our products in the US market for sale is competitive. This competitive edge can be given by the US through concessional tariffs for cross-border movements, least imposition of non- tariff barriers. The liberalized attitude towards any anti-dumping issue requires political consideration by the US government so that our textile products continue to sell without any setback," he concludes.