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United States (US) has allowed Pakistani companies to participate in government procurement with the approval of the US President as Pakistan has obtained observer status in government procurement group of the WTO. This was stated by Commerce Minister, Engineer Khurram Dastgir Khan at a press conference that he addressed along with Secretary Commerce Shahzad Arbab, Additional Secretary, Rubina Athar and Economic Minister to the US.
According to the Minister when Pakistan raised the issue that as trade concessions are not being extended to Pakistan then how trade relationship between Islamabad and Washington can move forward he was told that Pakistani companies were permitted to bid in US government procurement which is around $1.7 trillion.
Pakistan was informed that to avail of this facility it must sign the Government Procurement Agreement of the WTO. Subsequently, Pakistan filed an application with the WTO after which it was accepted as an observer of the government procurement group. This is the first step towards availing of this facility which was achieved with the help of the US Department of Commerce.
"Now we enjoy some rights as an observer which is a positive development. We have been given rights to bid in US government''s procurement. We will educate Pakistani companies on this so that they can participate in US government procurement contracts," he added. The commerce minister said that there is a vast opportunity for Pakistani companies to supply materials such as textile and shoes to the US.
Pakistan''s Economic Minister to Washington told media persons that Pakistan cannot participate in regular procurement of the US but the US President has the power to give a waiver in any particular case. The commerce minister explained that working level discussions were held with the US officials on Trade and Investment Framework Agreement (TIFA). He added that the Bilateral Investment Treaty (BIT) with the US will be signed only when it is deemed beneficial for Pakistan.
He further maintained that Pakistan has gone through the standard template of the US on BIT, adding that if Pakistan implements the US template it will have several obligations. The Commerce Minister said that Pakistan is preparing its own template which will be shared with the US once it is readied. Replying to a question, the Commerce Minister said that Pakistan is in GSP with the US for the last 35 years but never filed a petition but the present government is going to file a petition.
Commerce Secretary Shahzad Arbab confirmed that Tauqeer Shah - former Principal Secretary to Chief Minister Punjab and an accused in the Model Town tragedy - has been granted visa and is leaving for Geneva as ambassador to the WTO in a couple of days, as permanent representative to the WTO. In response to a volley of questions on the appointment of Dr Tauqeer Shah to represent Pakistan at WTO, the Commerce Minister defended the appointment saying that selection process was transparent. The Commerce Minister revealed that an approval from the WTO on his appointment has been received. Replying to a question, the Commerce Minister said Pakistan does not foresee any major change in trade trends with the US.
The US has its own sensitivities on textile sector and keeping in mind that scenario Pakistan will file its petition of new items after GSP, as reauthorized by the Congress after remaining pending for the last 19 months. Pakistan is in the GSP for the last 35 years but it never filed any petition. However, the incumbent government is going to file a petition as GSP is approved by the Congress. There are some textile items which have sensitivity.
"Presently, there is a flat line in Pakistan''s imports and exports. That''s why we are trying to find new avenues in trade towards value addition," he added. According to the Minister, as Pakistan is shifting to value addition in textile, footwear etc it will have a positive impact on Pakistan''s exports to the US.
Pakistan is watching the movement of international market. Commerce Ministry has no control on currency but when it is affected, Pakistan''s exports face negative implications. The commerce minister said Pakistan has not sought investment on its own cost under the BIT. Pakistan wants to integrate itself with international market. In reply to a question, he said, the Commerce Ministry is initiating a process for appointment of new trade officers for different countries, adding that utmost efforts will be made to select trade officers on merit.
This time the focus will be on people who have ample market aptitude. The commerce minister further stated that some of the concerns raised in the US -Pakistan Business Opportunities Conference deserve consideration, but some others were not justified. In reply to a question, he said that a dispute on Export Development Fund (EDF) with Textile Ministry has been resolved, adding that the fund is for export development and not for export reward.

Copyright Business Recorder, 2015

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