INP-WealthPk
Pakistan, US Relaunch Trade Accord to Boost Economic Ties
April 11, 2022
By Raza Khan ISLAMABAD, April 11 (INP-WealthPK): The relaunch of Trade and Investment Framework Agreement (TIFA) between Pakistan and United States will help enhance bilateral trade and investment, according to experts. Islamabad and Washington recently relaunched the TIFA process to promote trade and investment for the benefit of both countries. Assistant US Trade Representative for South and Central Asia Christopher Wilson announced the relaunching of the bilateral agreement after two-days of discussions between the two sides in Islamabad. Pakistan and the US had signed TIFA in 2003, which provides for a consultative mechanism to resolve bilateral trade issues. The most recent TIFA meeting was held in Islamabad in early March. Dr Sajid Ameen, a research fellow at the Sustainable Development Policy Institute (SDPI), told WealthPK that the relaunching of TIFA was a significant move for both Pakistan and the US. He said that the agreement provided the opportunity for Pakistani exporters to sell their products in US market at good returns. “The US is the largest economy of the world carrying huge potential for business,” Ameen said. He added that Pakistan should focus on cooperation with the US in the IT sector under TIFA. “Pakistan should use the agreement for resolving problems faced by the IT exporters in getting access to the US market,” he suggested. Ameen was of the view that Pakistani traders should also explore the opportunity of exporting value-added products to US while the government should formulate a policy to attract American investors. Mohammad Mudassir Tipu, Director General (Americas) in Ministry of Foreign Affairs, said that the recent bilateral engagements between the two countries were constructive. Addressing a seminar, he said that trade and investment climate of Pakistan was booming as Pakistan was a market of 220 million people. “Pakistan has made business-friendly regulatory laws, improved environment for investment and created opportunities in special economic zones (SEZs). He said that Pakistan was offering business opportunities in various sectors, which should be exploited by the private sector and the US government. “These sectors include IT, energy, e-commerce and pharmaceuticals.” Mudassir Tipu said that the government had constituted a committee of Pakistan-American entrepreneurs in the Silicon Valley to boost the IT sector. According to the Trade and Development Authority (TDAP), the US has been the top export destination and the second largest trade partner of Pakistan. The US was Pakistan’s largest export destination in fiscal year 2020-21 followed by China and the United Kingdom. Total exports to the US during 2020-21 were recorded at $5.183 billion against the exports of $3.753 billion during the preceding year 2019-20, registering a growth of 38%. The US was also the largest export destination in 20219-20 for Pakistan. According to the TIFA draft, both the countries have agreed to enhance the role of private investment, both domestic and foreign, in furthering growth, creating jobs, expanding trade, improving technology and enhancing economic development. Pakistan and US would encourage and facilitate private sector contacts between the two countries and resolve trade and investment problems expeditiously. TIFA also offers to reduce tariffs and eliminate non-tariff barriers in order to facilitate greater access to the markets of both countries.
