We are commemorating the 15^th anniversary of ECO's expansion from a trilateral organization to one with ten member states.  ECO has come a long way over these years, helped by strong commonalities of history and geography, faith and culture.  We have been guided by common objectives and convergent goals.  One over-arching aim is to raise the living standards of our peoples, to strengthen trade and transport linkages, and to achieve a seamless economic integration of the region.

 

The ECO region has great potential.  It has a very important strategic location.  It is endowed with rich natural resources – from energy and mineral deposits to fertile land and favourable weather systems as also talented people.  We have a population of around 390 million and a land mass of nearly 8 million square kilometers.  Our economies are performing well.  The total GDP of the region amounted to $ 891 billion in 2006.  The average Growth Rate of the region was 6.9 percent in 2006.

 

We have to realize the full potential of our region.  ECO has, for that purpose, laid the necessary institutional framework.  A number of agreements has been signed and important decisions taken.  These cover such fields as trade and transport, industry and energy, agriculture and environment, finance and investment as also visa facilitation.  We hold regular meetings at various levels to carry forward cooperation.  These included, this year, six Ministerial meetings – on Environment, Agriculture, Interior, Industry and Finance as well as the Council of Ministers' meeting (COM) held at Herat last month.

 

Trade is our highest priority.  Our aim is to establish a Free Trade Area by 2015.  Under the ECO Trade Agreement (ECOTA), tariff duties have to be lowered, 8 years, to 15 percent on 80 percent of the goods traded.  We are also pursuing elimination of non-tariff barriers (NTBs) and are conducting a survey in collaboration with UNIDO.  ECOTA's implementation is to be overseen by a Cooperation Council which shall meet once a year, preferably at Ministerial level. 

 

ECO has two important institutions to help promote regional trade.  The ECO Trade and Development Bank, set up at Istanbul with an initial capital of SDR 300 million, starts its operations this week.  The ECO Reinsurance Company has been set up at Karachi, with an authorized capital of US$ 30 million. 

 

Transport linkages are being strengthened under the Transit Transport Framework Agreement (TTFA), effective since May 2006.  Its subsidiary committees have already met to implement the rail and road part of TTFA and to clear legal and insurance issues.  The 17^th COM has set up a Fund for implementation of TTFA.  We have agreed to shortly issue a white insurance card for the ECO region.  Measures have also been taken to run more efficiently the ECO container train on the Trans-Asian main railway.  We have reduced its travel time by 36 hours. 

 

In the energy sector, we aim at promoting power trade and efficient energy management.  We are pursuing interconnection of power systems of member states.  Two separate studies are being conducted in cooperation with IDB and World Bank.  The initial reports of both studies have been circulated to member states.  These would be considered at an Expert Group Meeting in Islamabad in early 2008.

 

Agriculture constitutes 23.4 percent of regional GDP and employs 40 percent of the active working population.  ECO is pursuing a Plan of Action for Drought Management and a Regional Programme for Food Security (RPFS).  We are implementing the ECO Agriculture Ministers' decision (March 2007) to improve seed quality, to strengthen seed supply and harmonize seed regulations.  RPFS is meant to increase food production and food trade in the region.  An ECO regional centre for management of natural disasters has been established in Mashhad.  Work on a permanent commission for control of animal diseases is underway.  We will hold the first ECO regional seed conference and trade exhibition in Bishkek, June 2008.

 

Industry contributes 27.6 percent to regional GDP.  ECO countries have a rich resource base for raw materials.  The Ministerial Meeting (Lahore, November 2006) agreed measures to enhance the share of industrial goods and services in trade, initiate viable joint projects, create investment-friendly environment and encourage the private sector.

 

On environment, the ECO Plan of Action has been extended up to 2010.  Its implementation would be monitored through annual national reports.  On Biodiversity, the Work Plan has been adopted for 2007-15. Progress on this subject would be reviewed at the 4^th Ministerial Meeting on Environment in Islamabad in 2008.

 

Terrorism, narcotics and transnational organized crimes pose a threat to regional stability.  The 17^th COM called for accelerating efforts, as agreed at the 1^st Interior Ministers' Meeting (Tehran, October 2006).  The second Interior Ministers' meeting will be held in Ashgabat in 2008 to review progress. 

 

ECO is contributing to the reconstruction of Afghanistan.  We have already initiated one project (Deh Mazang Park and Kabul Zoo) and are considering two more projects (a maternity hospital in Faryab and a comprehensive health centre in Kabul).  Pakistan and Turkey have contributed $ 5 million each and Iran US$ 1 million to a special fund created for the reconstruction of Afghanistan.  The 17^th COM appealed to other ECO states to contribute to this fund.

 

In conclusion, ECO is moving on, guided by its aims and ideals.  It has made progress in important fields.  We have laid the necessary institutional framework.  We are focusing more and more on implementation of agreements.  Improvement is in evidence.  However, the pace is not fast enough.  This and other challenges have to be met.  It is most encouraging that there are no obstacles to progress.  The way forward is open.  We shall press ahead together – all Member States hand-in-hand.