Commerce Minister Humayun Akhtar Khan has said efforts were underway "to sustain high growth rate," which would lead to poverty alleviation," for which, a strategy is in place. "We hope to be able to sustain the high growth rate," he told reporters at the conclusion of his two-day Washington visit, at a briefing held at the Pakistan embassy.
He said that at the start of President Musharraf's government, our export was 7.8 billion-dollar; while this fiscal year, Pakistan's exports would exceed some 17 billion-dollar. This also indicates that employment opportunities have increased, and that we need high growth rate to alleviate poverty.
He referred to attaining of growth rate at 8.4 percent, and efforts to sustain it. "And, unless we expand our exports, we would not be able to achieve such growth rates. If we sustain these growth rates consistently, it will help us in lowering poverty."
To a question, the Commerce Minister said there was a healthy growth in our garment export, despite barriers, adding "our exports with America this year would increase to three billion dollars."
According to figures, exports from Pakistan to the US in 2003 ($-2534-million); 2004 ($-2863 million); January to September 2004 ($-2147 million); January to September 2005 ($-2384 million -plus 11 percent). Imports by Pakistan: 2003 ($808 million); 2004: ($-1710 million); January-September 2004 ($-1392 million); January-September 2005: ($-845 million- minus 39 Percent). Pakistan surplus: 2003 ($-1726 million); 2004: ($-1153 million)' January-September 2004 ($-755 million); and January-September 2005: ($-1539 million- plus 104 percent).
Percentage of textiles and apparels: 2003: 83 Percent; 2004: (85 percent); January-September 2004: (85 percent); and January-September 2005 ($-86 percent). Commerce Minister said in June 2003 visit of President General Pervez Musharraf, Pakistan and the United States signed Trade and Investment Framework Agreement (TIFA), which becomes a prelude to a bilateral trade relationship. "When I visited America in September 2004, we started negotiations on Bilateral Investment Treaty (BIT)," he stated.
Humayun said that during presidential visit of December 2004, President Musharraf made a request for start of negotiations for a Free Trade Agreement (FTA), in his meeting with President Bush to deepen bilateral economic relations.
He repeated his request in his New York meeting with the US President in September 2005, on the sidelines of the UNGA session, "and, it is under consideration." "And, during my current visit, intense negotiations have been held at every level of the US Administration, and it was agreed that discussions on it must be expedited."
About the FTA, he told a reporter that "we are going ahead in a gradual manner - TIFA, BIT, and now FTA - is being discussed. Both the governments have decided to expedite the pace of negotiations, and, there is a fair consensus on majority of provisions."
Giving a worldview, he said portion of textiles and apparel in Pakistan's total exports now stands at 59 percent; but with US, 85 percent of our exports consist of textiles and apparel. "It, however, is a sensitive and political issue in USA, because of strong lobbies for textiles. And this is the basic reason, why there has been no headway, so far, in respect of our demand for market access. And, we have spent a lot of time contemplating how to overcome this obstacle," he added.
Dilating on the meetings he held with senior US administration officials during his two-day stay, the Commerce Minister said in Washington, " the FTA was the focal point of all our meetings." "And, it was agreed that the negotiations being held for BIT be concluded at the earliest," he told newsmen.
He said there were many areas "in which we have agreements while in other respects, talks are proceeding ahead."
"I don't feel there is any issue in these talks that is insurmountable," Humayun Akhtar stated, adding both governments had expressed their desire to expedite the matter.
As far as the FTA is concerned, it has been decided to jointly find such a solution, which are acceptable to both the countries, and the stakeholders of the two sides. After that, the US government would be in a better position to decide about the FTA.
In the post-quota environment, he said Pakistan's performance in America was better "but, our dilemma is that US has extended preferences to certain regions, such as Andean region ie Central America, Sub-Sahara in Africa, and the textiles are included in their preferences, "which directly affects our trade."
He said Pakistan believed that in the post-quota era, we had to compete in some areas with large economies, which compete in textiles. "Difficulty is faced, because of that reason."
"Our request, therefore with US is for market access- and this is the basis for that." He, however, said there was increase in our trade with the US, and we believed that there could be more of an increase if these few obstacles were removed.