''Sweden, UK pushing for greater access to Pakistani products''

Ambassador of Sweden Ulrika Sundberg in an exclusive talk with Business Recorder team comprising Wasim Iqbal, Sohail Sarfraz and Zaheer Abassi has stated that Pakistan has the capacity to generate enough from its own resources to fund rehabilitation and reconstruction of the flood-affected people but emphasised that it requires political will.
She disclosed that the European Union (EU) Commission and Pakistan are currently engaged in bilateral talks on selection of products which would enjoy tariff concessions. The Ambassador further says donor countries need a consolidated reconstruction plan to avoid overlapping. The following are excerpts from the interview:
Business Recorder: What is the contribution of Government of Sweden for Pakistan''s flood affected victims? Ulrika Sundberg: We have provided $37 million in cash as humanitarian aid. Additionally, we deployed around 250 experts to strengthen National Disaster Management Authority''s (NDMA) capacity and support United Nations efforts. Sweden installed water purification plants in Southern Punjab and Northern Sindh. Generators were also distributed.
BR: Will you provide assistance to Pakistan for reconstruction/rehabilitation?
US: We are waiting for the government''s presentation on a reconstruction and rehabilitation plan. Several countries have shown interest in assisting the government. The Chairman NDMA often receives our phone calls in this regard. We keep asking him as to how we can assist on a regular basis. NDMA has limited staff to deal with an exceptionally high flood that hit Pakistan and European countries as well as the US have worked together to strengthen this office by providing skilled manpower.
BR: What problems, if any, are being faced by donors with reference to reconstruction/ rehabilitation efforts of the government? US: There is a lot of discussion about the 18th Amendment and the delegation of powers between the federal and provincial governments. What we require is a government plan which clearly identifies where the power will lie in different sub chapters of development. You may recall there were separate donor conferences organised by the chief ministers of Punjab and Khyber Pakhtunkwa. We are waiting for a consolidated document to see where we will allocate our funds. A consolidated demand will minimize the chances of overlapping of funds.
BR: Is Sweden interested in funding some specific sector(s)?
US: The initial Damage Needs Assessment report estimated a damage of $9 billion. We are looking for some division among us.
BR: Has Sweden played a proactive role in the grant of tariff concessions by the EU to Pakistan?
US: Sweden and UK are pushing inside the EU commission for greater access to Pakistani products in the EU markets.
BR: Major portion of our textile exports are to EU countries. What are your comments?
US: The best solution for Pakistan is to generate its own resources for reconstruction activity. Exports are an important instrument in this respect.
During 2001-09, Pakistan''s textile exports amounted to 2.9 billion euros to 3.3 billion euros. In the same period, textile exports from India and Bangladesh doubled and China''s export''s growth tripled. This shows growth of Pakistani textile exports lags behind other regional countries. Pakistan needs greater focus.
BR: When will the three-year tariff concessions to Pakistani products become effective?
US: Currently, bilateral discussions are taking place between EU Commission and Pakistan on what products the tariff wavier should apply. My government''s concern is that the selected products to EU markets must have high added value as for example Pakistan would not earn as much foreign exchange by exporting raw materials as it would by exporting manufactured goods. At the same time we cannot ignore the interests of different sectors within the EU market which may be affected by Pakistani exports. We have to ensure that Pakistani export products have as high a quality as those available within the EU markets. For instance, bed-linen produced in Pakistan would be competing with Italian bed-linen, a high trade brand item. So there are certain challenges which need to be addressed. At a later stage, the EU Commission may face criticism from those countries which may demand the same concessions from the EU. Following general trade rules, EU countries have gone to WTO for a three-year wavier on Pakistani products into EU market.
BR: Can Sweden assist us in improving quality of our exports?
US: We have producers of different kinds of machines which may assist Pakistan in raising capacity of the textile sector and production of goods in line with EU standards.
BR: Are you satisfied with the investment policies of the government of Pakistan?
US: A legal framework for the protection of foreign investment is very important for a foreign investor. I know Pakistan has joined a number of conventions and lots of discussions are going on in respect of money laundering bill. State Bank of Pakistan has done substantial work on it. Investment laws must be clear.
BR: Does any sector enjoy tax exemptions in your country?
US: No one. Every body is taxed. The king, prime minister and other high officials all pay taxes. There is no exception. Tax instructions are found in 50 languages for every one''s knowledge. Tax evasion incidents are very little.
BR: Why did Sweden not opt for the Euro?
US: The government held a referendum in which the public voted against the single currency (Euro).
BR: What is Sweden''s stance on Kashmir?
US: We had a dispute with Finland on the occupation of Iceland. This dispute has certain similarities with the Indo-Pak dispute over Kashmir. We resolved the issue in 1921 when the issue was taken up in the League of Nations. On the directive of the League, a referendum was held in the disputed territory and the result was acceptable to all relevant countries.