Pakistan pressing US for direct market access: Tarin

KARACHI (November 14 2009)
Finance Minister Shaukat Tarin said on Friday that Pakistan has been pressing hard on United States to provide a direct market access to its products in the shape of Free Trade Agreement (FTA).

"We have talked to General Metthew John (US Assistant to Deputy Under Secretary) and categorically stated that we want direct market access along with the progress on the reconstruction opportunity zones (ROZs)", he said while talking to newsmen at Jinnah Terminal of Karachi Airport after seeing off the high powered US delegation led by Deputy Under Secretary for US Defence, Paul A. Brinkley.

Tarin said that he had told General John during the meeting today (Friday) that United States has signed FTA with 16 countries which are not that much strategic partners of US as Pakistan is. They included Jordan, Oman, Egypt, he added. He said that Pakistan was also seeking ROZs as well as GSP Plus from European Union, but at the same time we want FTA with US.

To a question the Federal Finance Minister said that the US had bogged down Pakistan in Bilateral Investment Treaty during the previous regime. Both the countries could have signed FTA had Pakistan been pressing for duty free access at that time, he noted.

"Now we are pressing very hard for direct market access so that our factories are run and employment is generated in the country", he said and added that it seems they (US) have now started understanding our point of view. "I have told them that Pakistani textile entrepreneurs might shift to Oman because US has provided them a duty free access. Oman is a country with a per capita income of $15,000 while Pakistan has a per capita of $1000 and there is no justification in depriving Pakistan of FTA." Shaukat Tarin noted that although it is a difficult job but we are focussing on FTA and trying aggressively for this access.

Responding to a question, the minister said that Pakistan would get $2 billion from Friends of Demoractic Pakistan (FoDP) this year. "We have already received commitments for $1.8 billion from FoDP which included $950 million from US, $380 million from Saudi Arabia, $300 million from Japan, $250 million from ADB", he added.

The Finance Minister said that there was no need to worry as Pakistan will have sufficient funds from its friends and this is the reason why Pakistan does not need a stand-by arrangement from IMF. Replying to another question, Tarin said that the back log of coalition support fund (CSF) has surged to $1.4 billion and Pakistan is expecting to get a tranche of $521 million in the next few days.

However, Pakistan is pressing to get $1.1 billion under coalition support fund this fiscal year, he maintained. Tarin said that war on terror was a priority and the government is committed to meet all its expenses.

Copyright Associated Press of Pakistan, 2009

Government working on nine-point economic reforms agenda: Khar

ZULFIQAR AHMAD
ISLAMABAD (November 14 2009)

State Minister for Finance Hina Rabbani Khar on Friday informed the National Assembly that the government is working on nine-point economic reforms agenda to bring economy back on track for achieving GDP growth, which has been targeted at 3.3 percent during the current financial year.

Responding to questions raised by different members, she said that this policy framework encompasses long-term macro-economic stability with desired increase in productivity, besides doing away with the energy crisis and removing infrastructure bottlenecks through public-private partnership.

The government, she told the house, is working on a plan to convert the national savings into an independent organisation to make it more attractive by increasing return on deposits and to enlarge its resource base. She further said that 58,077 defaulters of House Building Finance Corporation (HBFC), with the default amounting Rs 6.4 billion, is adversely affecting the advancing of further loans to the poor masses living without shelter.

Responding to a query, she said that the government collected over Rs 112 billion on account of petroleum development levy during the last financial year. And the amount is mainly being used to make billions of rupees pending payments to oil companies as the commodity was subsidised for the benefit of the public.

Commerce Minister, Makhdoom Amin Fahim informed the house that country's exports in the last three months have stood at $4.4 billion against the imports of $7.5 billion in the same period.

He said that the government has announced various initiatives in the Strategic Trade Policy Framework (STPF) to boost exports by exploring non-traditional areas. He said that the Economic Co-ordination Committee (ECC) of the Cabinet has allowed import of 600,000 tons of urea fertiliser, adding it has also been decided to give subsidy and sell at Rs 750 per 50 kg bag to the growers.

On the occasion, Privatisation Minister, Naveed Qamar informed the house that Benazir Employment Stocks Option (BESO) scheme is being implemented in all government owned organisations under which 12 percent shares are being transferred to the employees of the institutions.

Replying to questions about BlackWater in the country, Interior Minister Rehman Malik said that there is no presence of BlackWater, saying Pakistan would not allow any foreign troops to launch any operation against terrorist groups inside Pakistan as its own forces are strong enough to deal with this menace effectively.

However, he said that some personnel of a US security company Dynacop are going to Afghanistan via Pakistan as the company is working in Kabul for security purposes. Moreover, he said these personnel are escorted by security agencies of Pakistan up to Afghan border and they are not allowed to stay in Pakistan. He assured the house that no foreigner would be allowed to carry and display unlicensed weapons, moreover, security agencies have been instructed to take strict action against those foreigners found violating the law.

Copyright Business Recorder, 2009

Balochistan package: minister appreciates government decision

LAHORE (November 14 2009)
Punjab Finance Minister Tanvir Ashraf Kaira has said that the government's decision to take political leadership in confidence on Balochistan package is a positive step. While talking to media here on Friday, the minister said this step would boost harmony in all circles of Balochistan.

"It would not only promote political reconciliation but also highlight the major issues faced by the people in the province. "The meeting between Prime Minister Yusuf Raza Gilani and PML-N leader Muhammad Nawaz Sharif is a positive step and it would strengthen political system. I hope that the contact between the two major parties would continue in future. "All political forces are united in stabilising democratic institutions," he added.