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C O N F I D E N T I A L SECTION 01 OF 04 LAHORE 000216 
 
SIPDIS 
 
E.O. 12958: DECL:  11/20/2019 
TAGS: OVIP CLINTON HILARY PK
SUBJECT: THE SECRETARY'S MEETINGS WITH THE PUNJABI GOVERNOR, BUSINESS 
LEADERS 
 
CLASSIFIED BY: Carmela A. Conroy, Consul General, US Consulate 
General Lahore, US Department of State. 
REASON: 1.4 (d) 
¶1.  (U) October 29; 17:15; Lahore, Pakistan 
 
 
 
¶2.  (U) Participants: 
 
 
 
U.S. 
 
The Secretary 
 
Ambassador Anne W. Patterson 
 
SRAP Ambassador Richard Holbrooke 
 
CG Carmela Conroy 
 
 
 
Pakistan 
 
(Both events) 
 
Punjab Governor Salman Taseer 
 
Foreign Minister Shah Mahmood Qureshi 
 
The Governor's Principal Secretary Ahmed Nawaz Sukhera 
 
(Business Roundtable Only) 
 
Ahmed Iqbal Saeed, Sweetwater International 
 
Asif Jooma Abbott Laboratories Pakistan 
 
Assad Umar, CEO Engro 
 
Bashir Tahir, CEO Bank Al-Falah 
 
Farooq Shahid, FMC United Pakistan 
 
Fawad Anwar, Al-Karam Textiles 
 
Gohar Ijaz, All Pakistan textile Mills Association 
 
Ibrahim Qureshi, Raffles Systems Ltd; President,American 
Business Council 
 
Imran Butt, Levi Strauss Pakistan 
 
Javed Saifullah Khan, CEO Saif Group 
 
Muhammad Latif, Chanab Fabrics 
 
Muhammad Mansha, Nishat Chunian Textlies/Muslim Commercial Bank 
 
Naseem Saigol, CEO Kohinoor 
 
Rizwan Ullah Khan, Country Manager Coca-Cola 
 
Shah Faisal Afridi, Haier Pakistan 
 
Shahbaz Malik, Hilton, Pharma Pvt 
 
Tariq Hassan, Emirate Bank 
 
Vaseem Anwar, CEO Echo West International 
 
Waqar Malik, ICI Pakistan 
 
 
 
¶3.  (SBU) SUMMARY.  On October 29th, the Secretary heard from 
Punjab Governor Salman Taseer and from Punjabi business leaders 
about their deep interest in sustained assistance from the 
United States, especially to help Pakistan fight and recover 
from the insurgency it finally accepts as a domestic issue.  The 
 
LAHORE 00000216  002 OF 004 
 
 
Governor said that Punjabi public opinion had shifted, from 
slight sympathy for Islamists who resorted to violence, to 
hatred.  He described insurgents as criminals marketing 
themselves as religious or ethnic leaders.  Businessmen asked 
that the United States expand the products list for 
Reconstruction Opportunity Zones (ROZs), for greater access to 
U.S. markets, assistance in improving textile and agricultural 
outputs, revisions to the Department's travel advisory, and 
greater U.S. investment in Pakistan.  END SUMMARY. 
 
 
 
--------------------------------------------- ------ 
 
PUNJAB PUBLIC OPINION HAS TURNED AGAINST INSURGENTS 
 
--------------------------------------------- ------ 
 
 
 
¶4.  (C) Punjabi public opinion towards "the terrorists" had 
shifted 180 degrees, from slight sympathy and indifference to 
hatred, Punjab's Governor, Salmaan Taseer, told the Secretary 
during a small meeting in his office.  While there had been 
tepid support for the offensive in Swat, the military effort to 
root out insurgents from South Waziristan had overwhelming 
public support.  Taseer characterized the insurgents as a motley 
crew of sectarian groups, the mentally ill, and criminals taking 
advantage of lawlessness.  While adept at portraying their 
causes along religious or cultural lines, "they are mostly just 
criminals using the name of Islam."  He downplayed the role of 
Punjabis in violent extremist organizations, claiming that 
people of the northern tribal cultures were more susceptible to 
membership in such groups. 
 
 
 
--------------------------------------------- -- 
 
PREFERENCE FOR HI-VIS, STRING-LESS ASSISTANCE 
 
--------------------------------------------- -- 
 
 
 
¶5.  (C) Taseer stressed the importance of "enduring" development 
projects in Pakistan.  He encouraged the USG to follow the 
Chinese and Russian patter of investing in tangible, 
highly-visible infrastructure projects.  Taseer urged USG 
support for a cancer hospital and for women's housing at 
universities.  He favorably compared Chinese assistance to 
American assistance.  Even though they brought in Chinese labor, 
instead of hiring locally, Pakistanis appreciated that the 
Chinese delivered without nagging Pakistan about human rights or 
other political issues.  Note: Women's enrollment at good 
universities has surpassed men's enrollment, at least in the 
Punjab, so lack of housing is not proving an unequal barrier to 
entry. 
 
 
 
--------------------------------------------- ------------- 
 
PAKISTAN NEEDS MARKET ACCESS AND INFRASTRUCTURE INVESTMENT 
 
--------------------------------------------- ------------- 
 
 
 
¶6. (SBU) Following the small meeting, Taseer led the Secretary 
to a ball room where he chaired a roundtable of business men 
gathered to meet her.  The business leaders focused on enhancing 
Pakistan's access to U.S. and European markets.  They claimed 
that Pakistan had been a better friend to the United States than 
any other nation with whom the United States had free trade 
agreements (FTAs), but these countries had more advantageous 
access to U.S. markets.  They acknowledged that concluding an 
FTA with Pakistan would take time, but said that even beginning 
 
LAHORE 00000216  003 OF 004 
 
 
negotiations would benefit Pakistan's economy. 
 
 
 
¶7.  (SBU) Businessmen stressed the positive impact that an FTA 
with the United States could have on reducing unemployment. 
Ijaz said that with market access and business partnerships with 
American companies, Pakistan's textile industry could easily add 
an additional five million employees to the 20 million currently 
employed.  Waqar Malik, Chief Executive of ICI, said that while 
Pakistan is currently the fourth-largest producer of dairy and 
cotton, firms lack sufficient capital to enhance yields and grow 
their businesses; access to the American market and direct 
foreign investment would change that. 
 
 
 
¶8.  (SBU) They also asked that the USG offer Pakistan a 
Generalized System of Preference - Plus (GSP Plus), and help 
Pakistan secure the same from the European Union.  Gohar Ijaz, 
Chairman of the All Pakistan Textile Mills Association (APTMA), 
said Pakistan could compete in the U.S. market if granted 
beneficial trade and tariff agreements.  Some asked that the 
Reconstruction Opportunity Zones (ROZs) product lists be 
expanded, especially for textiles and apparel. 
 
 
 
¶9.  (SBU) The business leaders recognized that Pakistan had an 
image problem abroad, and asked the Secretary's help in 
burnishing its image.  That, they said, would attract foreign 
direct investment.  The Secretary's visit had helped hit the 
"reset button" in relations between the two nations, and what 
Pakistan needed next from the United States was consistent, 
long-term economic assistance. 
 
 
 
------------------------------------------ 
 
UNEMPLOYMENT, HOPELESSNESS DRIVE TERRORISM 
 
------------------------------------------ 
 
 
 
¶10.  (SBU) Business leaders stressed that unemployment was the 
driving force behind domestic terrorism.  Javed Saifullah Khan, 
Chairman of Saif Holdings Limited, echoed the governor's earlier 
point that Pakistan's Northern areas were a breeding ground for 
domestic terrorists, with high unemployment and economic 
isolation.  Just 1.7 percent of all credit granted in Pakistan 
went to the NWFP, according to the APTMA chairman. 
 
 
 
--------------------------------------------- --- 
 
SEEKING AMERICAN INVESTMENT IN THE ENERGY SECTOR 
 
--------------------------------------------- --- 
 
 
 
¶11.  (SBU) Asad Umar, CEO of Engro Group, said development of 
Pakistan's significant coal reserves could both solve the 
country's energy crisis and drive economic growth.  The coal 
reserves in the Thar area of Sindh Province alone were estimated 
to be equivalent to 380 billion barrels of oil; enough potential 
energy to meet Pakistan's needs for 800 years.  While 
acknowledging that the environmental impact of coal-fired power 
plants would have to be mitigated since over 40 percent of 
global power comes from coal, the United States should partner 
with Pakistan to exploit this resource. 
 
 
 
--------------------------------------------- 
 
LAHORE 00000216  004 OF 004 
 
 
 
THE SECRETARY RESPONDS: IT'S A TWO-WAY STREET 
 
--------------------------------------------- 
 
 
 
¶12.  (SBU) The Secretary agreed that the United States could 
help strengthen Pakistan economically.  She cited initiatives 
already underway, including plans to enhance Pakistan's energy 
infrastructure, the promotion of ROZs in the U.S. Congress, and 
assistance in encouraging an Afghanistan-Pakistan Transit-Trade 
Agreement that would open Central Asian markets to Pakistan. 
She encouraged them to open trade with India, in pursuit of an 
enormous Hindi/Urdu speaking market, and pointed out the 
possibility of economic cooperation paving the way for a 
political solution in disputed territory.  She noted that 
Pakistan's tax-to-GDP ratio was among the lowest in the world at 
9 percent, while the U.S tax-to-GDP ratio ranged from 16 to 20 
percent; this meant that Pakistan needed to make a greater 
effort to collect taxes from on its own citizens.  She 
encouraged the businessmen to take the lead in developing 
Pakistan, while assuring them that the United States would be a 
long-term partner contributing to their efforts. 
CONROY