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  • EQ : Pakistan-US free trade pact urged

    Pakistan-US free trade pact urged


    By Our Correspondent


    WASHINGTON, Nov 6: The US should conclude a free trade agreement with Pakistan to help it overcome the negative effects of earthquake that killed about 80,000 people and displaced millions, says a senior aide to President George Bush.

    Ed Gillespie, former chairman of the Republican National Committee, said he believes the FTA would help “the revival of the Pakistani economy badly affected by the earthquake.”

    “This would be a major help,” said Ambassador Jehangir Karamat. “It will go a long way in rebuilding our economy.”

    Pakistan has been trying for the last three years to conclude a free trade agreement with the US but has not yet succeeded in achieving this target. An FTA establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders. It can also ensure preferential access to the US market for Pakistani goods.

    “A trade relationship is very important,” said Mr Gillespie. “By allowing more Pakistani goods and services to reach the US market, we can help Pakistan overcome the long-term effects of the earthquake.”

    Senate Chairman Mohammedmian Soomro, also welcomed the suggestion and reminded the guests at a Saturday night fundraising dinner in Virginia that the need to back the reconstruction process was even greater than supporting relief operations.

    “Now we will tackle greater problems, such as rehabilitating the children who have lost their parents, relocating survivors to safer areas, removing debris, rebuilding houses, and reviving the communities destroyed in the earthquake,” he said.

    Mr Gillespie said he believes that direct US assistance to the rehabilitation and reconstruction of the affected areas would not only continue but may also increase.

    “Pakistan is an important US ally and we cannot afford to ignore Pakistan. We want to help and we will help,” he said.

    Chairman Soomro, Mr Gillespie and Mr Karamat were among dozens of guests at a fundraising dinner at the residence of a Pakistani-American businessman, Rifat Mahmood, where $500,000 were raised for the earthquake victims.

    “Events like this will ensure long-term engagement of the international community with the relief, rehabilitation and reconstructions works,” said Susan Allen, wife of Senator George Allen of the Senate Foreign Relations Committee, a powerful Republican lawmaker from Virginia.
    http://www.dawn.com/2005/11/07/top11.htm
    Pakistan is been hit by the Earthquake. It is a truism that it is beyond Pakistan to recover on its own or with the aid so far given. It would be expecting too much given the extent of damage and the finances of Pakistan.

    Irrespective of the surge in the economy, Pakistan is not in a very comfortable position.

    She has postponed her F 16 deal in the light of the reconstruction that is urgently needed because of the Earthquake.

    An international donors' conference is due so that more aid can be organised from foreign nations.

    Therefore, Pakistan is doing all its mite to mitigate the devastation.

    In view of this, there should be more assistance to Pakistan since unless she recovers, it will become a den for terrorists because there is every chance that if Pakistan does not recover, the malcontents will rule the day.

    Therefore, the case made out by the US Senator who is a powerful Republican should strike a chord with Bush and the Senate.

    One would also recall that Pakistan also give money to the US for Katarina victims.


    "Some have learnt many Tricks of sly Evasion, Instead of Truth they use Equivocation, And eke it out with mental Reservation, Which is to good Men an Abomination."

    I don't have to attend every argument I'm invited to.

    HAKUNA MATATA

  • #2
    Originally posted by Ray
    Pakistan is been hit by the Earthquake. It is a truism that it is beyond Pakistan to recover on its own or with the aid so far given. It would be expecting too much given the extent of damage and the finances of Pakistan.

    Irrespective of the surge in the economy, Pakistan is not in a very comfortable position.

    She has postponed her F 16 deal in the light of the reconstruction that is urgently needed because of the Earthquake.

    An international donors' conference is due so that more aid can be organised from foreign nations.

    Therefore, Pakistan is doing all its mite to mitigate the devastation.

    In view of this, there should be more assistance to Pakistan since unless she recovers, it will become a den for terrorists because there is every chance that if Pakistan does not recover, the malcontents will rule the day.

    Therefore, the case made out by the US Senator who is a powerful Republican should strike a chord with Bush and the Senate.

    One would also recall that Pakistan also give money to the US for Katarina victims.
    Hmmm...
    What's the difference between people who pray in church and those who pray in casinos?
    The ones in the casinos are serious.

    Comment


    • #3
      Who are you and what have you done with the real Ray?

      An excellent analysis, I couldn't put it better myself.

      Terrorism breeds and feeds on poverty and dispair.

      If the population of AJK and Northern Pakistan is not helped, people will become poor and in dispair and amongst that the criminal element will flourish. Even now the orphans where being snapped up by the sex industry forcing the governemnt to put a bar on adoption and putting armed guards outside hospitals and orphanges where the children are kept.

      I think it is essential that the world works with us, works amongst us to make sure that funds are correctly allocated and work carried out correctly, to make sure it doesn't all disapear, because i don't trust anyone in that country.

      Comment


      • #4
        Originally posted by Ray
        Pakistan is been hit by the Earthquake. It is a truism that it is beyond Pakistan to recover on its own or with the aid so far given. It would be expecting too much given the extent of damage and the finances of Pakistan.
        Experts and analysts have said earlier that EQ impact on Pakistani economy would be minimum as the affected area's hardly contribute to its financial sector and exports.
        They even predicted higher growth in many sectors as reconstructionwork has already started pushing the demand in materials. Thats ironic, but we saw same effect in US after Katharina and Rita.

        But, we should nog ignore the human drama that is still unfolding and its psychological effets for many years to come on those poor victoms.
        They can use any help there is and therefor its a good move to have a trade free agreement with US.

        Comment


        • #5
          Originally posted by Ray
          Pakistan is been hit by the Earthquake. It is a truism that it is beyond Pakistan to recover on its own or with the aid so far given. It would be expecting too much given the extent of damage and the finances of Pakistan.

          Irrespective of the surge in the economy, Pakistan is not in a very comfortable position.

          She has postponed her F 16 deal in the light of the reconstruction that is urgently needed because of the Earthquake.

          An international donors' conference is due so that more aid can be organised from foreign nations.

          Therefore, Pakistan is doing all its mite to mitigate the devastation.

          In view of this, there should be more assistance to Pakistan since unless she recovers, it will become a den for terrorists because there is every chance that if Pakistan does not recover, the malcontents will rule the day.

          Therefore, the case made out by the US Senator who is a powerful Republican should strike a chord with Bush and the Senate.

          One would also recall that Pakistan also give money to the US for Katarina victims.
          I think US should have said to pakistan the following
          cancel the contract with sweden for the saab planes and use that money for building ur country, and if any one attacks you in the mean time i will take care of that country for u

          would this have been a better option ray sir, if not why?

          Comment


          • #6
            Originally posted by platinum786
            Who are you and what have you done with the real Ray?,.
            He is and was the same always.

            Originally posted by platinum786
            An excellent analysis, I couldn't put it better myself.,.
            Thats Ray
            Originally posted by platinum786
            I think it is essential that the world works with us,.
            Definitly yes.I have send clothes from here
            What's the difference between people who pray in church and those who pray in casinos?
            The ones in the casinos are serious.

            Comment


            • #7
              Platinum and Neo,

              You both confuse me.

              Having experienced natural calamities, I personally feel that there should be immediate help, in not only goods but in finances, too.

              True, it will lead to a boom in the reconstruction sector, but then the fat cats will get fatter and not the poor sods who have weathered the catastrophe or the govt.

              The fats cats will just make a pile, they would not bother about the social requirement.

              It will be left to the government to address the non remunarative sectors.

              Thus, the govt requires the aid.

              What could be better than trade without strings so that one can feel justified it is one's own effort rather than that which comes out of the begging bowl!

              That is why I feel that there should be free trade and not the begging bowl.

              Just my view!

              BTW, I am the same person.


              "Some have learnt many Tricks of sly Evasion, Instead of Truth they use Equivocation, And eke it out with mental Reservation, Which is to good Men an Abomination."

              I don't have to attend every argument I'm invited to.

              HAKUNA MATATA

              Comment


              • #8
                explain how i confused you, because now you have confused me.

                Comment


                • #9
                  Plat,

                  Not you alone.

                  Your view and Neo's view are contradictory or so it appears to me.


                  "Some have learnt many Tricks of sly Evasion, Instead of Truth they use Equivocation, And eke it out with mental Reservation, Which is to good Men an Abomination."

                  I don't have to attend every argument I'm invited to.

                  HAKUNA MATATA

                  Comment


                  • #10
                    Originally posted by Neo
                    Experts and analysts have said earlier that EQ impact on Pakistani economy would be minimum as the affected area's hardly contribute to its financial sector and exports..
                    I doubt it Neo,Do u think GOP wud be including POK figures in its national economic figures.That can be easily used by India in putting the case that POK is a part of Pak and not azad.

                    Originally posted by Neo
                    They even predicted higher growth in many sectors as reconstructionwork has already started pushing the demand in materials. Thats ironic, but we saw same effect in US after Katharina and Rita..
                    The infra that was destoyed isnt that huge that it might add anything to the national figures.Building a 2 lane road or villages wont be significant eough.


                    Originally posted by Neo
                    But, we should not ignore the human drama that is still unfolding and its psychological effets for many years to come on those poor victoms.
                    They can use any help there is and therefor its a good move to have a trade free agreement with US.
                    They say even unborn childs in the womb could have got killed.
                    What's the difference between people who pray in church and those who pray in casinos?
                    The ones in the casinos are serious.

                    Comment


                    • #11
                      Originally posted by bull
                      I doubt it Neo,Do u think GOP wud be including POK figures in its national economic figures.That can be easily used by India in putting the case that POK is a part of Pak and not azad.
                      No Sir,

                      Pakistan has an official budget for AK and has been pouring more and more money into it over the years. AK has its own government and controlls its revenues.
                      What I meant is that NWFP is equally affected as AK but hardly contributes to our economy.

                      The infra that was destoyed isnt that huge that it might add anything to the national figures.Building a 2 lane road or villages wont be significant eough.
                      Its not only the infra but millions of houses, schools, hospitals and other stuff that has to be reconstructed. There's high demand for household products, cloths etc.
                      That all should result in higher domestic production in various sectors.

                      They say even unborn childs in the womb could have got killed.
                      I think that the aftermath will count over 200.000 caualities.
                      Its really sad!

                      Comment


                      • #12
                        I feel that instead of giving financial aid, which can be diverted, it would be better if donor countries construct the infrastructure damaged so that those affected really benefit.

                        Free trade would also benefit Pakistan immensely.


                        "Some have learnt many Tricks of sly Evasion, Instead of Truth they use Equivocation, And eke it out with mental Reservation, Which is to good Men an Abomination."

                        I don't have to attend every argument I'm invited to.

                        HAKUNA MATATA

                        Comment


                        • #13
                          Originally posted by Ray
                          I feel that instead of giving financial aid, which can be diverted, it would be better if donor countries construct the infrastructure damaged so that those affected really benefit.
                          Thats the most ideal solution, it would work.
                          I wonder why somany governments not have thought of it yet.

                          Free trade would also benefit Pakistan immensely.
                          Correct, it would have a great impact on our economy, specially exports to US.

                          Comment


                          • #14
                            ‘Quake to have adverse impact on economy’

                            By Ansar Abbasi

                            ISLAMABAD: The World Bank and the Asian Development Bank have warned Pakistan that the October 8 earthquake will have an adverse impact on the country’s economy hitting the official GDP, fiscal deficit, balance of payment, economic growth, current account, poverty reduction besides considerably shaking the budget 2005-06.

                            "The earthquake will have an adverse impact on the economy, most notably on the fiscal deficit of the Government of Pakistan," said the WB-ADB draft report on preliminary damages and needs; assessment of Pakistan’s earthquake 2005, a copy of which was provided to The News.

                            Assessing the macroeconomic effects of the earthquake on the country’s economy, the report said in the absence of any offsetting revenue increases and expenditure reductions, the earthquake is projected to increase the financial year 2006 (FY06) of the government of Pakistan by 0.6 per cent of GDP, from a projected 3.8 per cent of GDP to 4.4 per cent of GDP.

                            On quake’s impact on external sector, the report said, "There will be a negative impact on the balance of payments, but pressures on the external sector are arising from strong aggregate demand and factors not directly related to the earthquake."

                            "A delay in PTCL privatisation and of aid inflows to finance GoP earthquake expenditures could aggravate these pressures," the report added. About the real sector, the report said that the impact of the earthquake on Pakistan’s official GDP (which excludes GDP from AJK) is expected to be relatively small, in the order of 0.3 per cent.

                            "FY06 GDP growth was projected in June at 7 per cent; however, recent data on the outcome of the cotton and sugarcane suggests that growth will be around 6.5 percent. The additional impact of the earthquake is likely to bring output growth further down, to around 6.2 percent. This loss is due to a projected reduction in NWFP output for FY06."

                            The impact of the earthquake on the budget of the government of Pakistan, the report said, is expected to be considerable. "Based on this preliminary assessment of damages and assuming a certain pace of relief and reconstruction activities, the earthquake is likely to increase the 2005-06 fiscal deficit to 4.4 per cent of GDP (ie by $730 million). This includes (i) about $20 million in lost revenue, (ii) as escalation of $185 million in operating budgets of administration for the overheads of relief and future reconstructions work; (iii) a minor increase in pension (and G P Fund) payments for government employees who died in the earthquake; (iv) an increase of $665 million in grants for deaths and injuries, livelihood, housing and a $42 million grant for AJK; (v) a $30 million increase in provincial (NWFP) expenditure; and (vi) a $100 million increase in development expenditure for reconstruction work. On the other hand, the government has indicated that some of the development funds (about $253 million) could be reallocated from the development budget towards financing the reconstruction programme."

                            The report said that the earthquake has created additional expenditure needs for relief, reconstruction and rehabilitation cost.

                            "These pressures could pose difficulties for the country’s macroeconomic balances and may impact on long-term development goals, unless additional concessional financing is made available by the international community. The government has indicated that it would be prepared to absorb the impact of the budget by making appropriate adjustments in the budget2005-06. Increasing the pass-through of energy prices to consumers and the tax-to-GDP ration by redoubling efforts on tax administration and policy could make an increased contribution to reconstruction. These adjustments would be needed irrespective of the amount and type of financing that may be available from the donor community. Nonetheless, given the magnitude of resources that would be required to rehabilitate the affected areas, it would be difficult for the government to neutralise the fiscal impact of earthquake without significantly affecting the public sector development activities and therefore reducing future economic growth and poverty reduction."

                            The report added that Pakistan’s trade balance is projected to deteriorate over the coming year. "Relief and reconstruction needs will have some additional impact on import demand, due to higher demand for fuel, steel and possibly cement. This, in addition to the strong import growth arising from an overheating economy, will place an additional strain on reserves.

                            "The impact on the current account could also be considerable. Although both remittances and forcing direct investment have shown healthy increases during the first months of the current fiscal year, during July-September 2005, gross official reserves have declined by $0.5 billion to $9.5 billion. To help the government meet immediate needs, the World Bank made available $200 million of program loans as well as $230 million of project loans. Even with this immediate emergency assistance, a significant financing gap will remain in the balance of payments. The delay in privatisation of PTCL, which was expected to add $2.7 billion in financing, may also affect the current account negatively."

                            "In the absence of additional international assistance, and of much needed actions by the government to curb demand, additional funds raised by the government through a possible Eurobond issue will be insufficient to finance the current account and keep imports at a level of at least 3 months of imports."


                            http://jang.com.pk/thenews/nov2005-d...main/main5.htm

                            Comment


                            • #15
                              A delay i solving the PTCL issue wud be more damaging than the EQ.
                              What's the difference between people who pray in church and those who pray in casinos?
                              The ones in the casinos are serious.

                              Comment

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