US to support Pakistan in poverty reduction

28 May, 2006

US Under Secretary for Economic, Business and Agricultural Affairs Josette Sheeran Shiner has said that the US government wants to find ways to support Pakistan''s own efforts to ease poverty and create new economic opportunities for its citizens.
Ms Shiner concluded her four-day (May 22-25) five-nation visit, with a trip to Pakistan. She said, "More and more, we find that Pakistan is a respected advocate for economic reform and liberalisation, not just in the region but in the wider world."
This was stated in a media note issued by the office of the Spokesman of US State Department on Friday. Pakistan, the Under Secretary added, has been taking steps "to enhance its global competitiveness."
The American businessmen she met within Pakistan, she added "were impressed with the vastly improved business climate in Pakistan, and with the government''s efforts to create jobs and economic growth." The visit of Under Secretary Shiner helped move US-Pakistani economic partnership to "new level."
The government of the United States has extended significant co-operation to the government of Pakistan in recent years. Economic Support Funds make up $300 million annually of President Bush''s five-year, $3 billion commitment to Pakistan (fiscal years 2005 to 2009).
Economic Support Funds are broken down into $200 million annually for budget support and $100 million for programme support. This five year commitment followed United States government debt relief of approximately $1 billion in 2003 and $500 million in 2004. In addition, the United States government pledged $510 million for earthquake relief and reconstruction. During her visit to Pakistan, the senior US official met with Prime Minister Shaukat Aziz.
The Under Secretary "engaged in a strategic economic dialogue with leading Pakistani economic officials, visited a US earthquake relief project in a mountain village in the Siran Valley, and participated in a meeting of the high level panel on UN reform co-chaired by Prime Minister Aziz."
During Under Secretary''s meeting with Prime Minister Aziz, "the Prime Minister announced his intention to complete negotiations on a Bilateral Investment Treaty (BIT) as soon as possible."
"A BIT would form an important part of the multifaceted US-Pakistan relationship, and would help attract US investment to Pakistan''s rapidly growing economy," the press note stated.
Under Secretary remarked on the "win-win nature" of such an agreement for both countries, and lauded the additional protections that would be afforded to US investors in Pakistan "under a BIT."
While in Islamabad, the Under Secretary engaged in an economic dialogue with leading Pakistani economic officials, led by Finance Advisor Salman Shah, "to share views on domestic and international economic policies, and identify areas for strategic co-operation."
The Pakistani officials explained how they plan to sustain Pakistan''s recent high growth rates by implementing a range of their second-generation microeconomic reforms.
The Under Secretary elaborated on President Bush''s Regional Opportunity Zone (ROZ) initiative and next steps in outlining the parameters of the ambitious project.
She also confirmed US government support for Pakistan "as a southern hub" for transportation, energy, and commercial linkages "that would enhance" regional economic integration between South Asia and Central Asia.

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