Amid concerns expressed by Pakistani business leaders about their country's economy, US secretary of state Hillary Clinton has asked them to set their own house in order and open up trade with neighbouring India.
Clinton criticised Pakistan's low rate of tax collection and called for better management of the economy during an hour-long interaction with top business executives in Lahore on Thursday.
"At the risk of sounding undiplomatic, Pakistan has to have internal investment in your public services and your business opportunities," Clinton told the gathering, referring to widespread tax evasion in a country that has been buffeted by serious economic problems.
"The percentage of taxes on GDP is among the lowest in the world. . . We (the US) tax everything that moves and doesn't move, and that's not what we see in Pakistan," she said.
"When we tell our taxpayers and (the US) Congress that we want to help Pakistan, they say: we want to help those who help themselves," she added.
Clinton said Pakistan's current population of 180 million is projected to rise to 300 million in future and there is a need for a coordinated approach to tackle upcoming challenges.
"I don't know what you're going to do with that kind of challenge unless you start planning right now," Clinton said.
After business leaders told Clinton about their problems in gaining access to US markets and the ongoing energy crisis in Pakistan, she advised them to open up trade with India for the benefit of the people of both countries.
Though the potential for business between India and Pakistan is unlimited, only the two countries can make a decision about enhancing trade, she said.
Clinton said she was looking forward to quick progress on a new transit trade agreement between Pakistan and Afghanistan and expressed optimism that the pact would be signed by the end of this year. A memorandum of understanding on the pact was signed by the two countries earlier this year.
She said the Afghan election had caused some delay in finalising the pact though Pakistan had done its part of the work. The deal will open up Central Asian markets to Pakistan.
When some business executives told Clinton that the new transit trade agreement was about giving India access to Central Asian markets and that Pakistan had linked the
normalisation of trade relations to the resolution of the Kashmir issue, she said it 'need not be a zero-sum game'.
An increase in trade between the two countries would have a positive impact on their relations and it would also be more advantageous to Pakistan, she said.
The US is encouraging India and Pakistan to go back to the dialogue process. "We just want to encourage dialogue" between the two countries, she added.
