KARACHI, Feb 28: The US government’s long pending proposal of setting up Reconstruction Opportunity Zones (ROZs) in Pakistan’s north-western tribal areas is making some headway as the officials of Pakistan and US governments and businessmen report “some movement” in the direction of legislation in the US Congress”.

“The process has begun in the Congress,” Dr Elizabeth Coldon, the official spokesperson of the US Mission in Pakistan informed Dawn on Wednesday. “But it is a long process,” she hastily added to point out that it was difficult to give exact date when the bill for ROZs in Pakistan will be introduced in the Congress. The proposed draft of the bill, she explained, is vetted by many committees before its introduction in the House.

“The draft of the proposed bill is ready and a few congressmen have taken up the responsibility to move the legislation at the earliest,” a senior Pakistani official indicated. The official was member of Pakistan’s team that visited Washington in October 2007 to hold parleys with various stakeholders in USA to discuss the different aspects of ROZs legislation. Ms Sheila Jackson Lee, the chairperson of Pakistan Caucus in the US is said to be playing a key role in initiation of the bill. The Pakistan government has already appointed two consultants in Washington to do necessary spade work for the legislation, the official added.

“Results of general elections in Pakistan on Feb 18 have caused euphoria in the US administration,” Majyd Aziz, a former president of Karachi Chamber of Commerce and Industry said, who was also in Washington last week. Majyd Aziz is involved in negotiations for setting up of ROZs in Pakistan. He discussed the proposal when he led a KCCI businessmen delegation last year and was again in Washington in October 2007 with an official team of Pakistan that included businessmen and a businesswoman from the NWFP.

“Target poverty, create employment and bring prosperity in the NWFP was our message to US legislators, businessmen and labour organisations,” Majyd Aziz said.

Under ROZs, the proposal is to set up chain of industries in the entire NWFP, FATA and a 100 miles belt along Afghanistan border in Balochistan, which brings Quetta within range from where industrial products would be offered entry in the US market either at zero rate or at concession rate.

Also included in the zone are the earthquake affected areas, which provides some opportunities for investment in Azad Kashmir.

“Americans have given 77 categories of textile products in the proposed ROZs,’’ he said and pointed out that this list does not contain many hot items that Pakistani businessmen want to be included. For example bedwear and a variety of apparel items are excluded. But there are opportunities of investment in all other categories with local value addition.

All investors from Pakistan and other countries will be allowed to set up manufacturing facilities in these areas. But the focus is that the local people be given employment opportunities.

Some sceptics in Pakistan, however, doubt if Americans are serious in developing close economic and business relationship with the former. There were no results of negotiations when Pakistan wanted a Free Trade Agreement (FTA) with USA. The Bilateral Investment Treaty (BIT) was bogged down by trivialities. So is the case with the ROZs concept, which had not made any headway for years together.

“It is time to ask Americans to do more now on the economic front,” a business leader remarked who quoted former commerce minister Humayun Akhtar as saying,” A billion dollar fall in Pakistan’s export earnings economically hurt one million families.’’

Businessmen say that the proposed ROZs in the NWFP do not offer same business facilities as in case of special zones in Jordan and Egypt.