Washington has reportedly cautioned Pakistan on advancing ties with Iran especially trade and economic relations, advising that Islamabad should tap other trade markets including the United States (US) which can offer better opportunities. This message was conveyed to Pakistan by US President, Donald Trump during delegation level talks held in Washington.
Early this month, Pakistan and Iran held talks on economic cooperation and enhancement of trade relations under the umbrella of Pak-Iran Joint Trade Committee (JTC). Iranian Commerce Minister led the delegation. Following deliberations, the committee came up with the following proposals to overcome the payment problem with Iran: (i) seek waiver from the US on sanctions; (ii) establish a mechanism for barter trade; and (iii) set up a dedicated bank to do business with Iran.
"Look toward other countries instead of your neighbour (Iran)," sources quoted Americans advising Pakistan during Prime Minister Imran Khan's ongoing visit to Washington DC. While talking about exit strategy from Afghanistan, Pakistan proposed that there should be a common initiative like Reconstruction Opportunity Zones (ROZs) to engage young generations of both bordering countries and those products should be exported to the US without any duty. This initiative will give a positive message, Pakistan reportedly proposed.
The sources said Pakistan also proposed that the Council of Trade and Investment Framework Agreement (TIFA) should be re-activated so that all the economic issues are discussed properly. In TIFA's Council meeting held in 2015, the US Secretary Commerce represented his country during which different economic issues were discussed in detail. The next meeting of TIFA is scheduled in September in the US. Prime Minister Imran Khan highlighted that trade volume between the two countries and investment from the US has declined manifold.
According to sources, Americans expressed their desire to invest in Pakistan's power sector on incentives already available to Chinese power companies adding that in the coming weeks, it is expected that a US energy sector delegation will visit Pakistan to explore avenues of investment in the power sector. Both sides also discussed ways and means of cooperation in Information Technology (IT) as IT experts from the Silicon Valley also held a meeting with the Prime Minister and other members of the delegation.
"You need to borrow IT brains from the US," the sources quoted the Americans as saying in the meetings. Prime Minister, Imran Khan during a meeting with US-Pakistan Business Council (USPBC) highlighted the need to enhance trade and investment relations between the two countries as existing relations are not at par with potential. Pakistan is keen to take Pak-USA bilateral trade and investment ties to new heights. The US businesspeople were informed that the next tax policy introduced by the incumbent government would be in favour of the business community and Pakistan would invite US entrepreneurs to get maximum benefits.
Pakistan Investment Policy has been designed to provide a comprehensive framework for creating conducive business environment for attracting FDI, the Americans were informed. Pakistan's policies have been consistent with liberalization, de-regulation, privatisation and facilitation, it was emphasized by the high-powered delegation members.
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