CSF and PBC sign MoU to promote investment
KARACHI (August 21 2007): The United States will continue to help the government of Pakistan in its efforts to raise income, jobs opportunities and well being of its citizens.
"We understand that providing economic opportunities for all Pakistanis is fundamental in building a solid, sustainable foundation for continued economic growth and peace", said US Consul General in Karachi Kay L. Anske, while speaking at the memorandum of understanding (MoU) signing ceremony between the USAID-funded Competitiveness Support Fund (CSF) and Pakistan Business Council (PBC) here on Monday.
The CSF and PCB signed the MoU to identify public policy initiatives to improve competitiveness of Pakistani businesses. The MoU was signed by Chief Executive Officer of CSF Arthur Bayhan and PBC Chairman Abdul Razzak Dawood.
According to MoU, the CSF and PCB will undertake joint initiatives in engaging the government, research institutions, academia and the private sector in developing evidence-based advice on changes in legislation relating to public policy initiatives.
The PBC will help the CSF in achieving its objective of supporting Pakistan's goal of a more competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country.
The US Consul General said that the USAID's support to this agreement amounted to 12 million dollars and since 2003, the USAID had provided over 73 million dollars for economic growth initiatives.
"Competitiveness is the key of long-term economic growth and we are pleased to see that the government of Pakistan's policies of de-regulation, liberalisation and privatisation are working and providing concrete results", she said, and added that the benefits to Pakistan were evident as its companies strengthened their competitive position, the country's economy would grow and improve the economic condition of its citizens.
As a driver of global economic growth, the US also benefited from competitiveness as a competitive and prosperous Pakistan would create more trading opportunities for the US, as well as other countries in the region.
She said that this new collaboration between the PCB and the CSF would ensure that Pakistan was better poised to not only understanding the needs of the global market, but also meeting their demand of a highly skilled and well-trained workforce.
The CSF would continue to build on the momentum generated from the conference it held here in May last year on competitiveness and economic growth in the Asia-Pacific region, she said, adding the conference provided Pakistan an excellent opportunity to showcase its competitiveness initiatives and efforts under way to improve its standing in the global value chain.
The US Consul General said that the CSF had identify industry sectors - such as motorcycles and fisheries - with potential and competitive advantage. The motorcycle industry, for instance, would increase the motorcycle market from existing 750,000 units per annum to 1.7 million units by 2010-11. This would create additional 500,000 jobs by 2010-11 due to increase in the market size and approximately an additional Rs 40 billion would be generated as government revenue, she added.
She said that the CSF had also carried out a study, which was assisting the government of Pakistan in establishing special economic zones (SEZs), which would result in the formation of a task force on SEZs. This task force would identify the investors' demand and assess the economic impact of the SEZs and it would also define the incentives and the standards for the SEZs, which would generate investment and create jobs.
"In a short span of time, the CSF has managed to establish public-private partnership to promote innovation and competitiveness by working closely with the Higher Education Commission (HEC), Pakistan Agriculture Research Council, the provincial governments, the Board of Investment (BoI) and now with the PBC", she added.
She said that the MoU between PBC and CSF was a noteworthy step towards their objectives, and expressed the hope that this partnership would help the private sector in Pakistan to generate more economic activities in the country.
Speaking on the occasion, CSF CEO Arthur Bayhan said: "It is important to look into the three main economic pillars to measure the competitiveness of any country and these pillars are:
-- An appropriate legal and institutional framework that includes, among others, the intellectual property rights, company and insolvency laws, antitrust legislation or competition policies etc.
-- An investment regime which aims at creation of a business-friendly environment and attracts foreign and domestic investment. However, more important is the greenfiled investment, which generates new technology, know-how, skills development, professionalism in management.
-- Innovation systems. Federal, provincial and local innovation systems to promote knowledge-based enterprise development that includes the strengthening industry academia linkages, commercialisation of research and building capacity for adaptation of new technologies.
He said that the competitiveness was the key to a sustained economic growth and economic growth was the key to generate employment and reduce poverty. PBC Chairman Abdual Razzak Dawood and CEO Salim Raza also spoke on this occasion and briefed about the agreement.
The CSF is a joint initiative of the Ministry of Finance and the US Agency for International Development (USAID). It supports Pakistan goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country.
Support for the CSF is part of the 1.5 billion dollars in aid that the US is providing to Pakistan, through the USAID, over five years to improve economic growth, education, health and governance and for earthquake reconstruction.
Business Recorder [Pakistan's First Financial Daily]
