Meeting with H E Mr Salman Faruqui, Deputy Chairman, Planning Commission of Pakistan
June 26, 2008 - Federation House, New Delhi

Speech by Mr. Salman Faruqui Deputy Chairman/Federal Minister Planning Commission of Pakistan

Distinguished Members of the Federation of Indian Chambers of Commerce and Industry,
H.E. Pakistan High Commissioner, Mr. Shahid Malik
Ladies and Gentlemen

It is indeed a pleasure for me and my delegation to come to this august home of Indian Commerce and Industry and I am grateful to you for your warm words of welcome.

A key lesson that has emerged from the development experience of the last sixty years, not only in our region but throughout the developing world, is that the most effective engine of economic growth, development and job creation is the private sector.

In Pakistan the private sector has been facilitated to play a leading role in our development process and this has been the consistent policy of all governments over the last 20 years. Having said that, the challenge for the government is to ensure that the resulting growth must create decent jobs, reduce poverty and lead to sustainable development. The major thrust of economic policies of our new coalition Government in Pakistan is to make this happen through a strong and active partnership with the private sector.

This is also the very purpose of our visit to India. The aim is to learn and indeed I may say "unlearn" from each others experience to foster private sector led growth in a globally competitive environment while ensuring that the gains of growth lead to real improvements in the lives of ordinary people.

The increase in oil and food prices have put enormous pressure on balance of payments in most countries and Pakistan is no exception. We are making efforts to increase our exports, by making Pakistan's products more competitive and through what we have termed "economic diplomacy".

Over the last few years there has been a healthy growth in bilateral trade between our two countries. Between 2001-02 to 2006-07 it has grown from US $ 236 million to $1.578 billion and is projected to touch US $2 billion in 2007-08.

This increase in bilateral trade, however, has been accompanied by a large trade imbalance in favour of India. Redressing this imbalance by increasing our exports to India is a major part of our export drive. For this to be mutually beneficial we need to work out modalities so that we trade in a "level playing field" in the areas identified, especially in term of addressing para-tariff and non-tariff barriers.

We are very keen to increase bilateral trade between our two countries, and what we have now, given the respective size of our countries, is only a small part of potential. Unleashing this potential we believe would be beneficial to both countries and help sustain high economic growth.

While concrete proposals would need to be addressed at the forthcoming meeting of Commerce Secretaries, the interaction today would provide a good opportunity to discuss ideas and options that will take these trade talks further.

Our delegation has had a very good visit to India and held very fruitful and useful discussions with both the private sector and key Government Ministries and agencies.

I would like to take this opportunity of our visit to FICCI to emphasize some of the priority areas on which we need to focus with mutual consent.

For example in the area of investment we would be prepared to look at requests, on a case to case basis, keeping in view our national interest and of course subject to India reciprocating in the same manner.

Pakistan is already following a liberal visa policy for Indian businessmen. I know that the two Governments are seriously discussing a more liberalized new visa policy which will help business from both side.

The agreement already in place for opening two Bank branches by each country needs to be fast tracked. A Pakistani bank has already applied and is awaiting approval. We would be happy to facilitate an Indian Banks application as soon as it is received.

The Pakistan Government will examine proposals already received for additions to the import list from India in the next round of Secretaries meetings to be held shortly.

So Ladies and Gentlemen as you can see we are prepared to further trade and investment between our two countries on a reciprocal basis.

We look upon you, the business community in India and your representative organizations, as Goodwill Ambassadors of furthering economic ties between our two countries.

I thank you again for your warm welcome to me and my delegation.