On the auspicious occasion of the ECO Day, I wish to extend warmest
felicitations to the governments and peoples of member states. We
celebrate today ECO’s expansion fourteen years ago from a trilateral to
a ten-member organization. Our strong commonalities of history and
geography, faith and culture have made us one family. We share common
gaols as enshrined in the Treaty of Izmir and the Quetta Plan of Action.
We are inspired by the same vision, the ECO Vision 2015 and we pursue
convergent goals in trade and transport, energy and environment,
agriculture and industry, health and human resource development.
2. The ECO region has great potential for economic
integration. Located strategically, it is endowed with rich energy
resources, mineral deposits, fertile land and, above all, talented
people. We have a population of 387 million and a land mass of about 8
million square kilometres. Our economies have performed demonstrably
well. The total GDP of the region amounted to US$ 775 billion in 2005.
It posted an average growth rate of 6.2 percent during 2000-2004.
3. ECO has laid a credible institutional framework.
Important agreements have been signed in diverse fields. The ECO Trade
Agreement (ECOTA) aims at promoting intra-regional trade which, at 6
percent in 2005, is far below the available potential. ECOTA would
encourage trade liberalization and harmonization of customs laws. It
will also be helped by simplification of visa procedures for business
people, e-commerce and efficient use of business forums. The ECO Trade
and Development Bank, set up with an initial capital of SDR 60 million
shared equally by Iran, Pakistan and Turkey, will help to achieve these
objectives.
4. Transport linkages are central to economic integration.
Intra-regional trade, tourism, people-to-people contacts and cultural
exchanges would benefit from an efficient transportation network. It is
particularly necessary because seven out of ten ECO states are
landlocked. The Transit Transport Framework Agreement (TTFA), effective
since May 2006, addresses this question. A related project, the Almaty-Istanbul
container and passenger
trains on the Trans-Asian main railway, is being pursued.
5. The ECO region has an important
role
in the World energy markets.
Its primary energy production is around 25.711 quadrillion Btu - about 6
percent of the World Primary Energy Production. Crude oil production is
6,019 thousand barrels per day or 7.4 percent of the world total.
Natural gas production is 9 trillion cubic feet or 9.2 percent of the
global production. With some of the highest mountains and the fastest
flowing rivers, the ECO region can produce enormous hydro-electric
power. The total electricity generation is around 551 billion kilowatt
hours which amounts to 3.3 percent of the world total. A feasibility
study, financed by IDB, on inter-connection of
electric
power systems of ECO states is underway. It is aimed at promoting power
trade and efficient energy management.
6. Agriculture constitutes 23.4 percent of the regional GDP
and employs 40 percent
of
the economically active population in the region.
Pakistan, Turkmenistan and Uzbekistan jointly provide about 40 percent
of the world cotton supply. The region also enjoys advantage in
producing cereals, rice, meat, livestock and dairy products. ECO is
implementing a Plan of Action for Drought Management and pursuing a
Regional Programme for Food Security.
7. As regards industry, the ECO region has a rich resource
base for raw materials. A wide variety of minerals are produced,
ranging from lead, zinc, iron, coal, copper and tin to silver, gold and
mercury. Industry contributes 27.6 percent to the regional GDP. ECO is
working on a regional strategy on industry which is expected to be
adopted at the Third Ministerial Meeting on Industry, scheduled for 30th
November 2006, in Lahore.
8. Environment, tourism, health and human resource
development are high on ECO’s agenda for active cooperation.
Environment has indeed been the subject of three Ministerial meetings
during the past as many years. Terrorism and trans-national organized
crimes, including drug trafficking, human and arms smuggling, as well as
illegal immigration came under close focus at the ECO Interior
Ministers’ Meeting held in Tehran in October 2006. The member states
agreed in the Tehran Declaration to intensify cooperation against these
menaces.
9. ECO’s regional institutions and specialized agencies
focus on specific areas. These include the ECO Cultural Institute, the
ECO College of Insurance, the ECO Chamber of Commerce and Industry, the
ECO
Consultancy and Engineering Company
and, the newly established, ECO Trade and Development Bank. Efforts are
underway to set up the ECO Reinsurance Company, the ECO Science
Foundation and the
ECO
Educational Institute.
10. ECO has mounted a modest effort to help in the
reconstruction of Afghanistan. A special fund has been instituted for
that purpose. Pakistan and Turkey have pledged US$ 5 million each and
Iran half a million US dollars for that purpose. A contract worth US$
1.3 million would be signed shortly for the construction of Deh Mazang
Park and the maintenance of Kabul Zoo. Additional projects are being
identified in consultation with the Afghan government.
11. ECO values close cooperative relations with major regional
and international organizations. We enjoy observer status with the UN,
WTO, OIC and IDB. We regularly attend UNGA. Biennial General Assembly
resolutions are adopted on UN-ECO cooperation. We have signed over
fifteen MOUs with international organizations. We would shortly sign
new ones with Shanghai Cooperation Organization, IMO and ILO.
12. In conclusion, ECO has entered a new phase, with fresh
challenges and opportunities. These would necessitate greater emphasis
on implementation of agreements. We also need to sharpen our focus on
the primary objectives of trade, transport and energy. Economic
prosperity and regional integration are goals worth pursuing with
single-minded determination. We shall spare no effort to that end.
