Preferential market access: Prime Minister makes pitch for increased exports to US

Prime Minister Nawaz Sharif Thursday asked the US-Pakistan Business Council to play its role towards efforts aimed at providing preferential market access to Pakistani goods in the US markets. Addressing the US-Pakistan Business Council (USPBC) Business Delegation here at the PM''s House during a luncheon meeting, the Prime Minister expressed confidence that the Council would also continue to play an active role in sharing with the larger US business community, positive experiences of doing business with and investing in Pakistan.
He said the Pakistani nation was now on a course of realising its true potential as a democratic country with strong institutions and a vibrant economy. He said Pakistan is among the few places in the world that offers the promise of resources, geography and people, all at the same time. Increasing urbanisation, favourable demographics, a growing middle class and economically empowered women and youth are some of the key drivers of the growth.
Sharif said Pakistan also has one of the most attractive investment regimes in the world, which allows foreign investors 100% repatriation of profits and easy convertibility into foreign exchange. The Prime Minister said Pakistan believes the private sector to be the engine of economic growth and considers foreign investment as a necessary catalyst for creating more economic opportunities.
"We believe that a vibrant private sector is essential to a government''s ability to provide the best possible services to its citizens. My government is committed to providing an enabling environment, sustained by institutional structures that facilitate and allow the private sector to flourish," he added. The Prime Minister mentioned the recently-launched 46 billion dollar China-Pakistan Economic Corridor and said it was a mark of growing confidence in Pakistan''s economy and its future potential.
This programme will spur regional economic integration and bring prosperity to the entire region and beyond. The Prime Minister said United States remains one of the most important economic and trading partners of Pakistan. He said leading US companies have invested billions of dollars in Pakistan and are making healthy profits.
He said the past testifies to the fact that those US companies that invested in Pakistan did reap rich dividends. The future promises to be even better. The delegation comprised Chairman US-Pakistan Business Council Miles Young, Mehmood Khan Vice Chairman and the US Ambassador to Pakistan David Hale. The 14-member delegation comprised US businessmen, executives, investors, and industry leaders.
The Prime Minister said the US Chamber of Commerce epitomises American enterprise and dynamism. He said through the US-Pakistan Business Council, the Chamber has been a close and trusted partner of Pakistan and has made commendable efforts to promote business-to-business collaboration between Pakistan and the United States. He said it has in the process, further strengthened relations between the two countries. He particularly thanked Chairman Miles Young and his team for their efforts in this regard and expressed confidence that the visit will go a long way in opening up new avenues for trade and investment flows between Pakistan and the United States.
The Prime Minister reaffirmed his commitment to this enduring partnership which he said has worked so well for the two sides in the past, and promises even richer dividends in the future. He said Pakistan and the United States have been partners and close allies since its independence in 1947. He said besides the close bilateral relationship between the two countries in the political sphere, the two countries, over the years, have forged an equally impressive economic partnership. The US has been, and remains, one of the major sources of investment in Pakistan, he said and added it is also a key market for Pakistan''s merchandise exports.
Sharif said Pakistan is a vibrant country of 180 million enterprising and hardworking people. He mentioned the multi-faceted and daunting challenges that the country faces, however regretted that it was not reported as accurately. He said significant strides have been made in addressing these challenges. The Prime Minister referring to the Pakistan''s internal security situation, said it is a prerequisite for an environment conducive to growth, and said it has registered impressive improvement. He said it is also true for governance and public service delivery. The Prime Minister said Pakistan''s robust macroeconomic indicators speak for themselves.
"Having suffered the ravages of terrorism for years, we, as a nation, have decided to put an end to it, whatever the cost. "Our comprehensive counter-terrorism operation, Zarb-e-Azb, is yielding encouraging results. The year 2015 witnessed the lowest number of terror attacks since 2007. We will make every effort that this trend continues to its logical conclusion," the Prime Minister said. He recalled the achievements on the economic front and said they have been equally encouraging.
"Our GDP has grown by 4.26% in the fiscal year 2015. This is the highest rate of growth over the last seven years. Inflation was at historic low of under 2%, in the first quarter of the current fiscal year. Real per capita income has risen by 12.91% in the first two years of our term. Over the same period, our budget deficit has been brought down from 8.2% to 5.3%. Our tax revenues have increased by about 33%. We are determined to stay the course," the Prime Minister said. He said overcoming energy shortages remains one of the key priorities of his government.
"We have evolved a comprehensive strategy, geared towards overcoming the energy shortfall on a sustainable and long-term basis. We intend to add 10,000MWs to the national grid by the end of 2017," he said. The Prime Minister said Pakistan''s economic upturn was being noted worldwide. Leading international publications, fund managers and rating agencies have acknowledged Pakistan''s outstanding economic performance. The Prime Minister said the South Asia region has comparatively, lagged behind the rest of the world in terms of human development.
"To lift our people out of poverty, we must first establish peace in the region. Pakistan, therefore, seeks good relations with all its neighbours," he said. "I firmly believe that shared prosperity is the real and only lasting prosperity. We cannot maintain peace within, unless there is peace without," he said and added that "it is what underpins my approach to a peaceful and friendly neighbourhood."
Prime Minister Nawaz Sharif said one of the key pillars of his government''s foreign policy was to support and encourage greater regional economic integration and connectivity. "This is where we have our biggest opportunities to reap the dividends of peace in the region for the common good of our peoples," he said. "Our quest for strengthening democratic institutions and promoting economic well-being of our people has not been without challenges."
Sharif said the Pakistani nation has once and for all decided that its future lies in a progressive and democratic state, where the private sector thrives, the government protects the rights of its citizens, and no one is left out. The Prime Minister said that the Pakistani nation is now on course of realising its true potential as a democratic country with strong institutions and a vibrant economy. "As long time friends and partners, I hope you will continue to be with us in this journey that promises to be both exciting and rewarding."
Chairman US-Pakistan Business Council Miles Young in his remarks said Pakistan and the United States of America have an enduring partnership and close ties that have continued to grow over the years. He said he was leading one of the largest delegations of American businessmen to Pakistan, something that was quite difficult only three years back. He said earlier it would have required lots of persuasion to convince them to visit Pakistan, however the situation has improved and cited the improved security situation as one of the main elements.
Miles Young said the delegation comprised a diverse group of businessmen, who dealt with consumer goods, new media, advertising, energy, logistics, defence, technology and Information Technology. He said the delegation comprised of people who believed in Pakistan. Young said the US-Pakistan Business Council is a strong believer in the Pakistan United States of America strategic dialogue and said the addition of the economic dimension has given it strength and consistency.
He said there is also a strong opportunity to create a business dialogue between the two countries, so that the two sides meet more regularly to discuss issues of mutual interest. Young recalled that before heading to Pakistan he conducted a survey and found that three-quarters of those who were part of the delegation had made investments in various sectors of Pakistan in the past three years.
He said a similar number of investors are looking forward to investing in Pakistan in the next three years, which is reflective of a positive picture of confidence as a sense of insecurity ends. He mentioned the points raised by Prime Minister Nawaz Sharif in his speech about the location of Pakistan and the size of its economy, the positive trade and demographic figures, a large young population and the middle class that continued to expand.
He also mentioned the opportunities available in the form of talent and innovation and particularly mentioned Pakistan''s role in the global digital economy. He pointed to the high economic growth and said his delegation witnessed the same growth in their meetings with different Ministers. Young said the security situation has changed and has moved from insecurity to a state where it is now being managed and is improving. He regretted that the country is not being given enough credit for what it has achieved.
He also referred to the briefing by Advisor to the PM on Foreign Affairs Sartaj Aziz earlier in the day and said it required courage to implement difficult policies. He said now the onus is on the USPBC to get the message across. He said the private sector organisations in the delegation understand the critical importance of the Foreign Direct Investment and would look into it how to enlarge its scope for Pakistan. "I believe future is very positive indeed," Miles Young said. He also paid a personal tribute to Prime Minister Nawaz Sharif as he was known as a ''Lion of Punjab''. "Lion is a symbol of confidence, we can feel that in you and Pakistan," he said.