News: Two pacts worth $73 million signed with US
Name of the Newspaper: The Business Recorder
Date of publication: Tuesday, August 01, 2006

ISLAMABAD: The Government of Pakistan and the United States signed two agreements here on Tuesday worth dollar 73 million. The first agreement between USAID and Government of Pakistan is a part of the US government's five-year economic growth assistance package to Pakistan under Strategic Objective Growth Agreement (Soga) and is worth more than dollar 73 million.

The other is Memorandum of Understanding to allow the Competitiveness Support Fund to partner with the Higher Education Commission in support of initiatives that promote knowledge-based economic development and ensure long-term economic growth.

In the first agreement, US Ambassador to Pakistan Ryan C. Crocker and Chairman HEC, Dr Atta-ur-Rehman were the signatories. While, Pakistan Minister of State for Finance Omar Ayub Khan and USAID Mission Director to Pakistan Jonathan Addleton witnessed the signing.

Omar Ayub said that the agreement worth dollar 73 million for five-years would facilitate economic growth in Pakistan. It will support initiatives that promote knowledge-based economic development and ensure long-term economic growth.

He said that the bilateral agreement for USAID's Economic Growth allocates dollar 13.7 million for 2006. The fund will enable USAID to provide over 130,000 loans for micro and small businesses in all the four provinces and Fata, continue support to promising industries throughout Pakistan, and enable assistance to more than 50,000 farmers in drought-affected areas of Balochistan with new seeds, livestock and irrigation systems.

Ambassador Crocker said, "The people of the United States are excited to see a growing, vibrant Pakistani economy. United States' Economic Growth programs in Pakistan will continue to help businesses grow and reduce poverty."

The second agreement, Memorandum of Understanding was signed between Competitiveness Support Fund (CSF), led by Ministry of Finance (MoF) and the Higher Education Commission (HEC). In this agreement, MoF is supported by USAID's Economic Growth program.

Pakistan Minister of State for Finance and Chairman CSF, Omar Ayub Khan and USAID Mission Director to Pakistan Jonathan AAddleton were the signatories

Speaking on the occasion, Omar Ayub Khan said, "The main thrust of the initiative is to build linkages between business and academia". "Such linkages will spark the kind of information sharing that makes business more dynamic and supports the commercialisation of innovations developed at our universities and research institutions", he added.

Expressing his views on the agreement, Dr Atta-ur-Rehman said that CSF will bring a new dimension to the HEC that should help researchers attract better financing and shape their work according to the needs of society and the economy. He further commented that co-operation of this type between business and academia has generated tremendous innovation in the countries that have developed it, not just in the US and Europe, but also in places like India, Thailand and Turkey. Pakistan cannot afford to ignore these successes, he added.

The function of CSF, he explained is to develop and support linkages between academia and industry for knowledge-based enterprise development. The fund with the HEC will provide technical assistance by engaging foreign experts to support projects promoting knowledge-based enterprises in Pakistan, he added.

He said, the two will work jointly to establish a forum for the identification of research-based projects that will further the development of a knowledge-based economy.

It is also stated in the MoU that the CSF will be able to provide matching grants to the Pakistani academia community for projects that commercialise their research.

Dr. Atta also revealed that CSF would also act as a bridge between local and foreign universities and research institutions, particularly those in the US and Europe. Appreciating the arrangement, he said that partnerships would advance international best practices promoting innovation and addressing workforce and technology development needs of local industry.