20000216

Diplomats urged to

work for equitable

economic system

RECORDER REPORT

KARACHI: Amjad Rafi, President, Karachi Chamber of Commerce and Industry (KCCI),has sought diplomats role in building of a just and equitable world economic system.

Speaking at the KCCI dinner meeting with the Karachi-based diplomats on Monday, Amjad Rafi said that the world community had been struggling to evolve a fair and just world economic order.

The impasse at World Trade Organization (WTO) meeting in Seattle and subsequently World Trade Economic Forum (WFF) annual meeting in Davos had amply demonstrated the short-coming of new system.

Linking trade to environment and social standard had posed formidable problems to the developed countries. Although the WTO envisaged free movement of commodities and capital, it does not allow free movement of labour which create unemployment, he said.

He said during last 50 years the share of primary products in world trade fell below 20 percent, while the industrialised countries gained from the unprecedental collapse in commodity prices and cheaper manufactured imports, while the developing countries suffered a great deal.

Meanwhile, the inflow of foreign direct investment (FDI) to developing countries has gone down from 37 percent in 1997 to 28 percent in 1999.

The chamber chief invited foreign investors to invest in Pakistan which provided best opportunities and favourable climate.

Amjad Rafi stressed the need of cooperation and coordination between consulates and KCCI, to bridge the information gap to help promote bilateral relations.

He said trade promotion efforts could also be intensified through exchange of delegations holding of single country exhibitions and exchange of commercial literatures.

The chamber chief said that Pakistan was passing through a transitional period. No doubt, there is a close link between the socio-economic growth and functioning of democracy. But the history is replete with such examples where the non-political system has served as an effective instrument for economic development.

The economic revival plan in Pakistan has started yielding fruitful results. The export has registered an increase of about eight percent during six months of the current fiscal year, inflation has been contained, stock exchange has been stabilised, government revenues started picking up , the issue of IPP has almost resolved and confidence of the investors is rebuilding.