PAKISTAN DETERMINED TO PLAY CONSTRUCTIVE ROLE IN WTO REGIME says Hafeez Shaikh

Islamabad, October 2, 2003

Pakistan is determined to play its realistic, practical and constructive  role in the World Trade Organisation (WTO). Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment stated this during a meeting with Dr. Supachi Panitchpakdi, Director General WTO who called on him here today.

He said that there was a need to build proper and effective alliances among the different groups to reach consensus for achieving the set targets. Domestic subsidiaries and high tariffs were the major concerns for Pakistan and we were in the process of injecting clarity among the Parliament, Business Groups and opinion makers in this regard, the Minister added.

Dr. Hafeez Shaikh further stated that the promotion of trade was the most  important component and in WTO a complete setback would not be acceptable for any country.

Elucidating the salient features of liberal economic regimes on Privatisation and Investment front being practiced by Pakistan, the Minister said that in order to reduce the fiscal burden we were moving with privatisation of Banks and focusing on utilities by privatizing one power distribution company Faialabad Electric Supply Company (FESCO) and one power generation unit Jamshoro Power company (JPC) by the end of this year. Efforts were also being made to privatize Habib Bank Limited (HBL) by the end of this year, while initial public offering (IPO) of 2.5 % shares of Oil & Gas Development Company (OGDCL), public offering of 3.2 % shares of National Bank of Pakistan (NBP) and bidding of Pakistan State Oil (PSO) was being targeted during the current month, he said.

He said that as regard to investment there was no restriction on the quantum of capital, equity or selection of sector. We were optimistic by our own prospects as Pakistan was now fourth in Asia with an increase of 5 % in growth rate and our foreign investment had shown an increase of 65 %. Dr. Supachi Panitchpakdi, DG WTO said that Pakistan being one of the constructive member countries in putting WTO back on track had played vital role at Cancun Conference. He termed his visit to Pakistan in continuation of discussions prior to the General Council meeting of WTO scheduled at Geneva by the end of this year.

He stated that in WTO every country has equal right of expression according to its priorities, preferences and interest. We were in the process of balancing the agenda for an open regime where countries would be benefited, he added.

Dr. Supachi said that Pakistan's demonstrated policy of openness; dedication and its will to modernize the economy indicated that Pakistan was well prepared for new opening under WTO. He suggested that the less developed countries should focus more on agriculture, manufacturing and services sector, which were prominently debated at Doha and Cancun deliberations. WTO could make positive progress having constructive involvement from other countries like Pakistan in its affairs, he hoped.

The gap of under standing, application of public rights agreements, trust building exercise, flexibility in export subsidiaries, opportunity for market access, inclusion of cotton and reduction of subsidiaries, maintaining the interest of the key players would be the main focus of WTOs Geneva General Council meeting, he added.