The decisions included establishment of an ECO trade and development bank at Istanbul and an ECO reinsurance company for catering to the reinsurance needs of the region.
The proposed ECO trade and development bank would begin with a paid-up capital of SDRs 60 million, equivalent to $100 million, to be subscribed by the founder members of the organisation, namely, Pakistan, Iran and Turkey.
The rest of the members, comprising Afghanistan and Central Asian republics who joined the ECO in 1982, would subsequently participate in the equity capital. The proposal for a joint development bank for the ECO countries was initiated a few years ago but like several other proposals and schemes, this initiative had remained in the cold storage so far.
According to the Iranian minister for economic affairs and finance, Tahmasb Mazaheri, the biggest challenge facing the ECO was the lack of implementation of a series of wide-ranging decisions, as he told a joint press conference.
The ECO finance ministers meeting apparently focused attention mainly on the policies of the member-countries in the financial sector covering central banking and monetary policies, macro-economic reforms, development of capital market including securities and stock markets, promotion of banking, insurance and investment, taxation policies, etc.
It was decided that the heads of the central banks of each member-country would hold regular joint meetings with a view to sharing the experience and knowledge in the field of monetary policy reforms and other aspects of the financial sector. At the same time these meetings would also take into account developments in the capital market of each country, including implementation of reforms in the corporate sector.
It was suggested that multiple listings of shares and securities of each member-country should be promoted in the stock exchanges of the countries of the region.
Sharing of the experience in the process of privatisation of public sector enterprises was also identified as an important sector for co-operation.
The other issues decided at the meeting encompassed co-operation for the establishment of a common grid with a view to identifying and cooling surplus and deficit energy resources in each country and thereby to evolve ways and means to achieve the exchange of these resources through bilateral and multilateral agreements.
The development of the communication sector, especially construction of roads to link each member-country particularly for the promotion of regional trade, was also emphasised in the joint communiqué.
The creation of a fund for supporting the reconstruction programme in Afghanistan, was accorded high priority. An important step proposed at the meeting was creation of a High-Level Experts Group comprising senior officials of ministries of finance and economic affairs of each member-government.
This group would be entrusted with the task of making in-depth study and suggesting closer co-operation between the member governments country in the pursuit of macro-economic policies, including monetary management and other affairs in the financial sector.
Additionally, it was decided that the officials of each member-country serving as representatives at the international financial institutions like the World Bank, IMF and the Asian Development Bank would henceforth co-operate with each other to act as pressure groups at these institutions to serve the common cause of the ECO members.
These are undoubtedly laudable objectives designed to expedite measures on a high priority basis for the achievement of the common goal of coherent policy pursuits to upgrade and enhance co-operation in bilateral and multilateral trade channels in addition to ensuring harmony in the overall economic policies and financial management of the member countries.
It may be hoped that the implementation of the proposal for the establishment of ECO trade and development bank and ECO reinsurance company, would be taken up in right earnest without further delays.