vited to construct small, medium dams in Pakis... - President grieved over killing of UNHCR official

WASHINGTON, Jul 17 (APP): Pakistan urged the United States on Thursday to facilitate greater market access for its products, with the country’s top finance leader arguing that upturn in exports would enable the country to achieve industrial competitiveness and higher growth rate. “We are asking our friends, the United States, European Union and others to help us on market access, the US is helping through Reconstruction Opportunity Zones trade program, Europe has also decided to treat us separately as a country facing terrorism, but I think we need (more) help” Finance and Economic Affairs Adviser Shaukat Tarin said.
Tarin spoke at the launch of the State of Pakistan’s Competitiveness Report 2009 at an event organized here by the US Chamber of Commerce and US-Pakistan Business Council, where Pakistani and American officials highlighted the key South Asian country’s potential for sustained economic growth and prosperity.

Pressing his case on the need to bolster market access for Pakistan, Tarin pointed out that some countries in the region, that have free trade agreements with major economic powers, are taking away the Pakistani industry.

In this respect, he cited the example of Oman, which has an FTA with the United States, saying the next door country is encouraging Pakistani entrepreneurs to come and put up the textile industry so that they can export to the United States.

“Now, how does that help me? So I think there is a need to look at market access for Pakistan realistically, our friends need to help Pakistan and Pakistanis. We need to have some kind of consideration for market access.”

Pakistan’s exports have been stagnating below $20 billion in the last several years and Islamabad is now looking for ways to diversify its products as well as gain preferential access in the large Western markets in order to achieve higher targets. Textile, cement and auto industries are among the main sectors forming industrial base.

For its part, Pakistan is also making efforts to consolidate its fragmented industry, Tarin said and informed the gathering of corporate leaders that Islamabad has recently come up with a bankruptcy law.

At the same time, the government is focused on trying to create value addition, he said, adding that the new budget has set up a fund that encourages value addition. For the small and medium enterprises, there are two

funds - for credit access and venture capital. Developing agro industry is another priority.

In spite of tremendous potential, the Pakistani industry remains at the lower end of value addition. For instance, one million bales of cotton in Pakistan produces one billion dollars, while one million bales of cotton in India produces two billion dollars and the same number of cotton bales in China fetches four billion dollars.

“We need to diversify our industrial base—we will pick up some industries which can be scaled up to fulfill our own needs and also exports.”

Tarin, a high-profile former banker, told the gathering that Pakistan has paid a very heavy price in its fight against militancy and the ensuing security challenges. Since 2001, Pakistan has lost more than $ 35 billion to the unrest and each year the cost is climbing higher than the previous year.

A combination of short-sighted fiscal and economic policies in the last several years and security situation impacted heavily growth had become a casualty by the time Shaukat Tarin was entrusted the responsibility to stage economic recovery last year. The growth rate fell from 4.2 in 2007 -08 to two per cent.

The industrial sector has suffered in recent years and it were only bumper wheat and rice crops that turned the negative trend into two per cent economic growth.

But according to Tarin, achieving industrial competitiveness is just one of the elements in a comprehensive economic policy, Islamabad is pursuing to put the country on track of sustainable economic growth. Agriculture - the traditional backbone of the economy - which grew by 4.7 per cent, will receive more focused attention.

“The coalition political government has taken some difficult steps to stabilize the economy, which was staggering in 2008 due to a spate of factors” he said.

In this context, he referred to a number of economic stabilization initiatives, tax reforms, rationalization of petroleum prices, and remarked these have helped in pulling inflation down to 13 per cent from a high of 25 per cent last year.

Similarly, the fiscal deficit has simmered down to 4.4 per cent from 7.4 per cent, the current account deficit is down to 5.3 per cent from 8.5 per cent.

“More importantly, in the last six months we have current account surplus in two months. We no longer borrow from the Central Bank. As a matter of fact, we repaid Rs 200 billion back to the Central Bank and have a pretty realistic exchange rate.”

The government will also significantly increase expenditure on human resource development and socio-economic development and fight poverty through a concerted program.

“I believe, we are 60 to 70 per cent on our way to stabilizing the economy,” he told the gathering. With success in Swat marking a turning point in arresting security situation, utilization of Gwadar port and harnessing the potential of large young Pakistani population, the country is destined to grow, he stated in an upbeat but rational presentation. link.....