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 You are in: Under Secretary for Political Affairs > Bureau of South and Central Asian Affairs > Releases > Fact Sheets > 2006
Fact Sheet
South and Central Asian Affairs Bureau
Washington, DC
March 4, 2006

United States- Pakistan Economic Cooperation

Commitment of the United States to Economic Development in Pakistan

The government of the United States has extended significant cooperation to the Government of Pakistan in recent years. Economic Support Funds make up $300 million annually of President Bushís five-year, $3 billion commitment to Pakistan (fiscal years 2005 to 2009). Economic Support Funds are broken down into $200 million annually for budget support and $100 million for program support. This five year commitment followed Unitred States government debt relief of approximately $1 billion in 2003 and $500 million in 2004.

In addition, the United States Government pledged $510 million for earthquake relief and reconstruction.

Economic Dialogue

The Government of the United States and Pakistan will engage in an Economic Dialogue that will include three components: global economic cooperation, regional economic cooperation and cooperation for Pakistanís economic development.

Bilateral Investment Treaty

President Musharraf and President Bush announced today that Pakistan and the United States negotiators have made meaningful progress on the text of a Bilateral Investment Treaty. Work has been completed on all but a few provisions in the basic text of the agreement, and work is progressing well on the annexes to the agreement.

Reconstruction Opportunity Zones

The United States Government is prepared to work with Congress and key stakeholders to seek legislation to create Reconstruction Opportunity Zones (ROZs) in vital areas of Pakistan and Afghanistan. This would create incentives for new investment and economic growth in regions of Pakistan are key to the War on Terror.

Energy Dialogue

The United States Government has extended an invitation to the Government of Pakistan to send a delegation to Washington to discuss Pakistan energy security concerns and potential areas for bilateral cooperation.

Container Security Initiative

The Governments of the United States and Pakistan have signed a Declaration of Principles for the Container Security Initiativeís Cargo Container Control Program. This will allow for the launch of U.S. Customsí distance image monitoring of containers bound for U.S. ports to facilitate screening procedures and reduce potential delays.

Competitiveness Support Fund

The Competitiveness Support Fund will support private-sector driven priorities and facilitate SME access to financial and business support services. By improving the competitiveness of industry, the CSF will contribute to poverty alleviation and economic growth in Pakistan. (USG $12 million, GOP $25 million).

South and Central Asia Trade Integration Initiative

The U.S. Trade and Development Agency will provide an assessment of the existing trade barriers that impede bilateral trade between Pakistanís various ports and Afghanistan, as well as between Pakistan and Central Asia in general. The Program is intended to result in specific recommendations to enhance the physical, technical, and regulatory infrastructure necessary to increase trade flows between the two countries and throughout the region.

Commercial Technical Cooperation

The U.S. Department of Commerce will provide advisors to the Pakistani Ministry of Commerce to consult on minimizing technical barriers to trade and other legal obstacles to commerce, to better analyze their own export competitiveness, and to better understand and comply with rules of origin, sanitary and phytosanitary standards, and other potential impediments to exportation.

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