Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered opening remarks at the 4^thU.S.-Pakistan Business Opportunities Conference at the Citigroup Conference Center in New York City. This conference builds upon the Joint Action Plan that President Obama and Prime Minister Sharif committed to that will increase bilateral trade and investment during the next five years, help modernize Pakistan’s economy and infrastructure, and promote a healthier business climate in Pakistan. 

In his remarks, Deputy Secretary Andrews highlighted that the conference was a special opportunity to build new commercial ties that would strengthen the economic link between the United States and Pakistan and make this kind of economic cooperation a lasting institution. 

While at the conference, Deputy Secretary Andrews also met with Khurram Dastgir Khan, Pakistan’s Federal Minister for Commerce.

Remarks As Prepared for Delivery

Ambassador Olson, thank you for that kind introduction. It is great to be here this morning.

On behalf the U.S. Department of Commerce and the entire Obama Administration, I am excited to welcome you to the 2016 U.S.-Pakistan Business Opportunities Conference. I hope that your travels went smoothly, and that you were able to stop by last night’s reception hosted by Bob Dechant, CEO of Ibex.

Each year, this conference grows in size and scope thanks to the leaders in this room. Allow me to begin by thanking Minister Dastgir and Ambassador Jilani for their work on this conference and for their commitment to the U.S.-Pakistan relationship. I also want to recognize Espie, President of the U.S.-Pakistan Business Council, for her leadership and for cosponsoring last night’s reception. Finally, I would like to take a moment and express our wishes to Prime Minister Sharif for a full and speedy recovery.

This is our fourth U.S.-Pakistan Business Opportunities Conference, but it is especially significant this year. Last October, President Obama and Prime Minister Sharif made a joint commitment to hold this conference annually as a way to better link our business communities. Both leaders agree that our relationship is more enduring when it is anchored by strong commercial ties between our private sectors.

This our first time hosting the conference in the United States - and your input inspired us to hold it in New York City.  We are thrilled to have hundreds of business owners, entrepreneurs, and policymakers here today. This group represents diverse industries and communities. But you all share a profound optimism for the future of the U.S.-Pakistan partnership.

It is that optimism that allows us to move past our challenges and focus on the aspirations of our people. Aspirations like economic growth and opportunity. Democracy and stability. Shared prosperity and security.

At the Department of Commerce, we believe that economic cooperation and strong commercial ties are essential ingredients for any enduring partnership between nations.

That’s why this conference is so important. Commerce has the power to link people and ideas around the world in profound and productive ways. Commerce has the power to align the interests of nations and build relationships capable of overcoming any challenge

The United States and Pakistan already have a solid foundation for economic cooperation. We are Pakistan’s largest destination for exports and one of its largest sources of foreign direct investment.

American firms are excited about doing more business in Pakistan and for good reason, too. Pakistan has the world’s sixth largest population. Of its 196 million residents, two-thirds are under the age of 30 And it is one of the most rapidly urbanizing countries in South Asia.

Clearly, this is an attractive market with many strategic advantages and there is enormous room for growth. Yet Pakistan still faces unique challenges in today’s global economy.

At the Department of Commerce, we view economic growth and greater private investment as Pakistan’s clearest path to prosperity and stability. Under President Obama’s leadership, we have worked to build a more enduring economic partnership with Pakistan. First in 2013 and then again in 2015, President Obama and Prime Minister Sharif committed to a Joint Action Plan that will increase bilateral trade and investment over the next five years, help modernize Pakistan’s economy and infrastructure, and promote a healthier business climate in Pakistan.

These ambitious initiatives extend far beyond traditional foreign aid. What unites these efforts is a commitment to putting our business communities at the center of our relationship.

Take our efforts to improve Pakistan’s energy infrastructure. Every company needs a reliable supply of energy. Unfortunately, power outages still routinely disrupt business in Pakistan – discouraging investment and stifling economic growth. These setbacks will remain all too frequent without a dramatic expansion of Pakistan’s energy capacity. 

That's why we started the U.S.-Pakistan Clean Energy Partnership. By facilitating private sector investment in infrastructure for solar, wind, natural gas, and hydroelectric power, the Partnership is on track to add 3,000 megawatts to Pakistan’s power supply by 2020.

We also know that businesses need access to credit in order to grow. Financing is indispensable for promoting entrepreneurship in any economy. Unfortunately, many Pakistani entrepreneurs still struggle to secure capital.

That is why the United States is working to expand access to capital through efforts like USAID’s Pakistan Private Investment Initiative. By partnering with private investors, this initiative has mobilized over $150 million in capital for Pakistan’s private sector to date.

Aside from helping more small and medium sized firms grow, these funds are stimulating the development of a private equity industry in Pakistan.

Yet any investor knows that capital cannot guarantee a company’s success - entrepreneurs need the right skills and the right tools to compete. Through our Special American Business Internship Training Program, the Department of Commerce is preparing entrepreneurs from across Pakistan to succeed in today’s global economy. To date, we’ve trained over 120 Pakistani entrepreneurs in sectors like gems and jewelry, surgical instruments, and packaging. And later this year, we’ll hold trainings on fashion design and energy. 

Agencies across the U.S. government are also working to train more Pakistani business leaders to utilize the Generalized System of Preferences. The GSP has proven instrumental in helping businesses increase their trade with the United States and ultimately, build more wealth in their communities.

We are also proud of our joint efforts to build a more inclusive Pakistani economy. In 2013, the U.S. government partnered with American University to launch the U.S.-Pakistan Women’s Council. The Council leverages private sector influence to bring more Pakistani women into the workplace. Companies that join the council are leading the way by hiring women for jobs in every phase of the business cycle.

Today we are proud to announce that General Electric, Citibank, the Resource Group, and Telenor are joining Coca-Cola, Pepsi, Procter & Gamble, and Engro as corporate sponsors of the Council.

I want to thank Minister Dastgir and Additional Secretary Ather for their enthusiastic support of this initiative.

As Secretary Pritzker said last year in Islamabad, an “economy can only reach its full potential when it taps into 100 percent of its talent.” In short, the United States is deeply invested in Pakistan’s success, and proud of our growing commercial partnership.

However, when it comes to preparing Pakistan to compete globally, we still have a lot of work to do. As Deputy Secretary of Commerce, I’ve had the chance to travel the world and meet with businesses in virtually every sector. What continues to strike me wherever I go is this: in today’s global economy, capital is more mobile than ever. Businesses can choose to invest nearly anywhere.

That means Pakistan is not just competing against neighboring countries, but against the rest of the world. Put simply: there is a global race for capital going on. Countries that fail to make themselves into attractive destinations for business run the risk of falling behind.

Just look the World Bank’s annual Ease of Doing Business Report. Pakistan’s overall scores improved in 2016. But its global ranking actually declined from 136 to 138. What does this mean? Not that Pakistan is doing less, but that others are doing more. It means that to compete in the 21st century, modest reforms and incremental change just won’t do.

We’ve heard about the challenges businesses face in Pakistan, such as unpredictable taxation, weak contract enforcement, and inconsistent protections for intellectual property. Companies also struggle with overly complex administrative procedures.

To compete globally and attract new business, Pakistan must streamline its bureaucracy. And it must meet the private sector’s need for more robust infrastructure – from energy capacity to roads and transportation.

The opportunity is there. In today’s global economy, investors are flocking to countries that deliver the needed reforms and make the most strategic investments. That means Pakistan must act boldly. And while taking bold action is not easy, we are confident it will deliver the greatest gains to the Pakistani people.

We know that Pakistan’s leaders are making real efforts to improve its business climate. We welcome several of the recent steps you have taken, such as enacting key provisions of the Intellectual Property Organization of Pakistan Act of 2012, starting an Ease of Doing Business Council and, Adopting the WTO’s Trade Facilitation Agreement (TFA).

You also continue to make progress implementing the reforms developed alongside financial institutions like IMF. And as Ambassador Olson noted only moments ago, Pakistan continues to focus on improving security. So it is no surprise that investors are taking notice and showing greater interest in Pakistan.

All of this work is in the best interest of the Pakistani people because it sends a message to companies and investors worldwide: Pakistan is open for business and ready to compete.

With bold reforms, we can imagine a future in which the U.S.-Pakistan relationship is defined not by challenges but by opportunities.

It is a future in which a woman in Karachi pioneers a new technology and wins capital from investors in California. It is a future in which an American company creates hundreds of new jobs when it opens a new branch in Multan. It is a future the United States and Pakistan can build together by putting our business communities at the forefront of our relationship.

Let me close by saying this. At the 2016 U.S.-Pakistan Business Opportunities Conference, let us remember that we are creating more than just opportunities for business.

Through greater trade and investment, through new economic cooperation, through deeper commercial ties, we are creating brighter futures for the people of our two countries.  That is a worthy cause we can all be proud of.

Thank you for being here. I wish you a successful and productive conference.