Federal Privatisation and Investment Minister Dr Abdul Hafeez Shaikh has said the main purpose of his meetings with high officials of the US administration was to share with them the health of Pakistan's economy, and what we think, is "an upbeat assessment of the positive developments and encouraging economic attainments."
In an interview with APP on the concluding day of the three-day visit to Washington, Dr Shaikh said, secondly, it provided an opportunity to talk to them, to identify ways and means to try to attract more private sector investments from the United States.
It was an occasion to dilate as to what instruments they have in mind to infuse American business to invest in Pakistan and what their thinking was, in this regard. "We want to educate ourselves about the details of their activities so as to attract investments to our advantage."
He held meetings with William Lash, Assistant Secretary of State for Commerce; Ms April Foley, vice chairman, EX-IM Bank; Ross Connolly, Chief Operating Officer of the Overseas Private Investment Corporation (OPIC), Alan Larson, Under Secretary of State for Economic Affairs, at the State Department; as well as, General Daniel Christman, senior vice president, US Chamber of Commerce.
Of particular focus in these bilateral meetings was the discussion on boosting of trade and investments.
The Federal Minister said the government has made great progress in having stable macro-economy. Now, it is the next step of private sector investment and growth "to sustain this economic progress."
The US side, he said was appreciative of the development and growth of Pakistan's economy, and showed their keen interest to work with Pakistan on expanding investments and trade, and developing private sector co-operation.
Detailing, Dr Shaikh said many of those from the US side already knew about the improvement in our economic situation, but, they were given the latest assessment- say, in respect of growth rate.
After about eight years, it is surpassing 5.5 percent, while our average foreign investment during the last 12 years have been about 500 million dollar, when in fact last fiscal year it was 800 million, and this year we are hoping to do same or better even.
If you look at our privatisation, in 10 years it was 60 billion rupees; from 1989 to 1999, we did 60 billion- in the first three years of Musharraf government, we did 36 billion ie 12 billion a year- now, in the last 16 months, it stands at Rs 42 billion.
"These are things, they didn't know," he said, adding "the main issue, however, is how can one sustain the pace of recovery."
With regard to attract American businesses to Pakistan, he said what are the instruments they have, and what is their thinking and their activities in the same regard.
Say for instance, the EX-IM Bank- if they extend some credit line to Pakistan, what are its terms, how can it be used better; or if they intend to increase US exports, how to do it.
"We have to try and identify sectors where there is greater scope, and similarly, those sectors in which we also benefit. So that, it is an integral part of -the investment, rather than just contracts- So, we have to tell them."
Or, as for instance, it was with commerce- it is very important that they understand that after 2005 trade in textile goes quota-free, it is but imperative that there would be a drop in prices because of competition. And, it is quite possible that some people here might use that as an excuse for anti-dumping measures against some governments.
So, we have to ensure that they don't resort to such things. Because that would be a natural consequence of the competition. We told them of it now- that this will happen, and not that they initiate reprisals- when the event erupts.
Dr Shaikh disclosed that the US side "appreciated this point."
Explaining, he said if a shirt is of 20 dollars now on average, then there is competition, it could be of 15 dollars. And, it you view that the country, say Pakistan, is dumping?. "So, it is question of talking about the future and ensuring that our interests are well understood by them, and protected."
Similarly, Dr Abdul Hafeez Shaikh said like Overseas Private Investment Corporation (OPIC), if they furnish any guarantees, or they itself create any investment funds for South Asia- which they right now are in the process- how can we avail the initiative.
"These were some of the things, we wanted to talk to them."
"Say, like we are doing privatisation- what role can OPIC play in attracting American firms- with whatever eligibility criteria being evolved."
It (the eligibility procedure) has, as yet, not been defined, but they are going for it with an objective to attract more investments in South Asia. "Now, it is for us as to how much we can get out of it."
"Say, if they come out with 150 or 200 million dollar investment plans- advisable course for us would be as to how alert we are that we can get share out of it."
He said it is for South Asia, there would be aspirations for other countries.
Responding to a question, the Federal Minister for Privatisation and Investment said, there were three concerns of these people (US side), "and, it was also important to hear what some of their concerns were."
He detailed these concerns as "intellectual property rights, legal dispute resolution- judicial reforms, and the UN Convention, called as New York Convention on arbitration." "These are the areas we are pursuing," he disclosed. On intellectual property rights, he said the US side maintains that if we encourage investment, particularly hi-tech, "we have to do something about it."
Dr Shaikh said, he told them of some of the steps that Pakistan has taken, including the federal cabinet having set up Intellectual Property Rights Organisation (PPRO), in the Government sector, under the Commerce ministry. It's basic purpose would be to monitor intellectual property rights based on our own property rights laws, and to share with them, if necessary.
Of legal dispute resolution- judicial reforms, he referred to the Westing House case and judgement by a superior court in Pakistan, which is often cited here.
In this regard, he referred the pursuing of the judicial reforms program, with ADB funds amounting 150 million dollars.
He said the federal Cabinet has reviewed the whole project some four weeks ago, and set up a committee in which Syed Sharifuddin Pirzada, as well as Law Minister and the Attorney General are members. It would devise and suggest methodology how to accelerate the program it basically is rehabilitation of the court structure- the system for checking the progress of cases, etc.
On the pattern of banking courts, he said there would be commercial courts- so that judges have knowledge and are aware of the consequences of their actions.
In this behalf, he said there has been discussion with the President, ten days ago.
In the matter of UN Convention on arbitration, he said the Federal Cabinet has decided to make progress.
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