Mushtaq Malik, Minister (Economics), Pakistan Embassy, on Sunday said, "continuity and stability of economic reforms policy" has started giving dividends to the nation, "as economic turnaround in Pakistan remains unmatched."
He referred to the positive economic indicators and the performance of the national economy for the past four years, saying "the accomplishments speak for themselves."
Asked about Pakistan-US economic and trade relations, Malik said in an interview with APP that "one fourth of our overall exports are to the United States, and our growth rate of exports to US is more than 20 percent." "These are far-sighted and vibrant relations," he said.
"And, secondly, financial assistance from US to Pakistan has increased over a period of time. For instance, now this year, the assistance package being given to Pakistan is about $701 million- Out of which, $300 million would be for defence and the rest will be spent on social sector reform and budgetary support."
He said: "Like this, we have also written off our $1.5 billion loan, out of their $2.9 billion dollars, and now we are left with too little US debt."
The Export Import Bank of the United States (Exim Bank) and the Overseas Private Investment Corporation (OPIC) are extending their facilities to Pakistan, he stated.
The Exim Bank has been opened to the public sector, which was previously closed, and now, any public sector agency can come to the Exim Bank for loan.
Likewise, OPIC has increased their annual loan for Pakistan from $300 to $500 million, and quite a few private sector investors from the US are to benefit from this facility.
Responding to another question, he said "the United States is a major contributor of trade enhancement for Pakistan, and one fourth of our exports are coming here, and the growth rate of our exports is very high."
"We have already signed framework agreement on trade (TIFA) with the US, and active negotiations with them are being made for free trade agreement (FTA), and hopefully, when the Federal Commerce Minister would come here, there would be some headway."
On Cancun, he said, "we are all prepared for post-multi fibber agreement, which is to end by the end of this year."
"We are quite competitive," he said, adding, with respect to textiles sector, more than $3 billion have been invested in a period of two years," and, we are poised for a very competitive marketing for our textiles."
On performance of the economy for the past three-four years, Mushtaq Malik said, in fact, the economy has turned around.
"There was time that we did not have enough money to pay for a week's imports, while today, we are able to have reserve enough equal to Pakistan's one year's imports."
"There were times that exports were negative zero one, our exports were minus one three percent. Now, our exports are going at 16 to 17 percent. The economy is moving at a fast rate."
Asked what Pakistan told to the investors who attend the IFC roundtable on Pakistan held on July 23, Economic Division in charge said: "We are telling these special investors as to what is the trend of economy, and what are the policies which the government has in place to promote investment, those reduced number of days and cost, which is required for starting new business. For instance, a year back, it used to take 30 days on the average to start a business, and now it is 21 days. Likewise, the cost of reviews has been reduced as well." One important thing is the continuity and stability of the policies of any government.
"Now, it is for the first time that the government is staying the course of reforms, and it is not going to change."
"We are staying on course of reforms- that is the major success of the economy; and, kudos to the economic managers."
"And, because of the policies of the government, continuity of these reforms, and the political government is going to take position for the economic agenda of the President and the government would continue doing so.
LAW & ORDER: "This is a major thing, which is required for any investment, because the investment is based on long-term predictions and projections. If the investors feel that the next government is going to change their policies, the entrepreneur is not going to invest- no matter how the law and order situation is."
On law and order situation, he said, "it has improved. Now, the law and order situation is under control, and, we are having better relations with our neighbours, including India, and this gives a greater stability factor and confidence to the future investor."
Mushtaq Malik is in charge of Economic Division in Pakistan Embassy and deals with economic issues and international financial institutions.
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