KARACHI:
A senior United States official stressed that the US and Pakistan have a “very strong” relationship and have entered a new chapter of cooperation and development.
In an interview with The Express Tribune, US Principal Deputy Assistant Secretary and Deputy Assistant Secretary for Pakistan, South and Central Asia Elizabeth Horst, during her visit to Pakistan last week, said “the relationship between the US- Pakistan right now is very powerful because it’s just about… the US and Pakistan together, not through a regional lens, not through any other lens.”
Responding to a question on the challenges faced by US investors in developing partnerships with Pakistan under the China-Pakistan Economic Corridor (CPEC), he said the US has been in Pakistan as much as China. “We have a long economic relationship with Pakistan.”
He pointed out that Washington has not asked Pakistan to choose between the US and China, adding that there is room for both.
“We believe that the terms of American investment are really beneficial for Pakistanis. And we’re proud that when an American company comes in, the kind of transparency and environmental concerns that American companies bring should really give us an advantage. So we see that American investment offers Pakistan a choice. And it is a good choice that will ultimately benefit Pakistani businesses and consumers.”
Horst noted that Pakistan was very active in the COP28 climate conference, adding that Pakistan got a lot of energy from coal-fired power plants.
“It’s extremely expensive and also not great for air quality. So finding a way to find replacements for coal-fired power plants is another area where I think the US and Pakistan can work together, hopefully.”
He pointed out that the business climate in Pakistan has attracted high-level American investment. Although both the US and Pakistan had been affected by a number of global headwinds whether it was Covid, inflation or floods in Pakistan, “we know there are still opportunities.”
However, Pakistan needs to do a few things, including working on its business climate, to ensure that companies feel they have a good business environment. “That’s the number one thing that’s going to attract business.”
He called on Pakistan to provide a level playing field for all businesses, including the US and others, reduce red tape and ensure that the red tape and regulatory environment helped all companies.
At the same time, it “needs to undertake tax and energy reforms, which the IMF has also emphasized through different loan programs.”
“I am confident that what Pakistan is trying to do to attract the private sector can be successful… Pakistan has exciting potential.”
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He said that the US and Pakistan are starting a new chapter where the two could explore many different topics of mutual interest where the interests of the two overlap. “We work with each other as partners.”
In detail, Horst said climate, agriculture and water were the top three areas of cooperation in the new chapter.
Pakistan has been a leading victim of climate change despite contributing less than 1% to global greenhouse gas emissions. It experienced devastating floods in the summer of 2022 that affected almost a third of the population of 240 million.
Pakistan has estimated over $30 billion in economic losses from the floods and requires over $16 billion for reconstruction.
The US deputy assistant secretary of state said another area of tremendous cooperation between the two sides is education. “We have seen a record number of Pakistanis wanting to come and study in the United States. It’s up 15%, which is a really big jump, especially after the pandemic, and we’re excited about that.”
The US has announced more than $16 million in development and humanitarian aid to help address food insecurity and malnutrition.
“We are also rebuilding schools, health facilities and water systems. And so we have a common interest in a common goal…We are working together for cleaner energy and infrastructure (in Pakistan).”
It can show how two governments come together to work on an acute crisis that is going to directly affect the next generation.
More than 1.5 children are at risk of dying from acute malnutrition in Pakistan and 8 million, half of them children, live without access to clean water. Most of them are still in flood affected areas.
“This is an acute emergency and the future of Pakistan is at stake because this is the future workforce.”
South Asia is one of the least integrated economic blocs and this is a disadvantage for all countries in the region. “So I think this is something where the Pakistani government and others need to figure out what could be done to take confidence-building measures … in trade and some economic innovation,” he added.
Published in The Express Tribune, December 19u2023.
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