Pakistan and the United States are "at an advanced stage of negotiations" to decide and announce a Bilateral Investment Treaty (BIT), US official sources disclosed.
The US Trade Representative (USTR) office sources told APP that "We are at an advanced stage of negotiations and both sides are considering how best to bridge the outstanding issues."
Pakistan Ambassador Jehangir Karamat recently said except for one or two clauses, which were being negotiated, the BIT was in a final shape. "These one or two things will be sorted out soon," he expressed the confidence.
Asked at what stage was the proposed BIT, Neena Moorjani, Press Secretary to USTR and Executive Office of the President said: "it is difficult to place a time frame on when we might reach final agreement, but both sides remain committed to reaching agreement in a timely manner."
As to what benefits would a BIT offer, she said "having a BIT with the United States will provide American companies a strong level of comfort that their investments in Pakistan will enjoy all the protections that a bilateral investment treaty offers." Moorjani said "dispute resolution mechanisms, national treatment and the weigh of both governments pledging to ensure that all investors are treated fairly, add up to a much more favourable investment climate for investors concerned about investment risk."
Earlier, it was likely that Pakistan-US BIT would be signed during President Bush's visit to Islamabad, however, it was reiterated in the Joint Statement that decision on BIT was expected due course of time, and that it would give a boost to bilateral trade and investment.
Neena Moorjani said this would be "the first BIT" with the United States in South Asia, "and would represent a strong signal to American business that Pakistan wishes to create a positive investment environment."
During his scheduled visit to Pakistan, from April 4 to 6, new assistant secretary of state for Central and South Asian Affairs, Richard Boucher is likely to discuss the way forward for finalising the BIT, during his talks with Pakistan officials. "There are one or two points which are to be discussed," Ambassador Karamat said, hoping that these would be decided soon.
Boucher's visit is seen as a follow up visit to President Bush's visit, during which, stock of the various initiatives agreed to and announced on March 4 would be taken.
Talks on BIT started in the first quarter of 2005, and so far two rounds of high-level talks have been held, when Federal Commerce Minister Humayun Akhtar has been holding talks with his US counterpart Robert B. Zoellick, who has last year has assumed the charge as deputy secretary of state. The two sides have shown their interest and resolve to sign a BIT.
On June 26, 2003, the two countries signed a Trade and Investment Framework Agreement (TIFA), which was aimed at opening up US markets for Pakistani goods. A TIFA is thought to be a prelude to Free Trade Agreement.
Pakistan has been asking for concessions in trade to Pakistan in enhancing its exports with the United States. In the post-quota regime, Pakistan has performed well in the sector of textiles and apparel.
In the Pakistan-US Joint Statement of March 4, the two sides agreed on Reconstruction Opportunity Zones (ROZs), to be set up in the border areas with Afghanistan, with some input from Afghanistan, to ensure uplift of the remote and backward areas, in which it would be possible for the US to extend concessions in export tariffs.
Pakistan's economy has registered an exceptional high growth during the last three years, at 8.4 and 7 percent, and in the wake of pragmatic and prudent economic policies, improved infrastructure and law and order situation, there has been a conducive atmosphere for attracting foreign investments and economic turn around.