Federal Finance Minister Shaukat Aziz has said that as a result of the consistent economic policies and reforms, Pakistan has reached at a stage where it needs no more foreign loans to run the country.
"We will abolish the kashkol culture from the country and rely on our own resources as the economic growth is encouraging, besides an unprecedented industrial growth," Shaukat Aziz said while addressing the annual export trophy function of Rawalpindi Chamber of Commerce and Industry (RCCI) here on Saturday.
"We are heading towards the new horizons of economic stability and industrial growth, which I am sure would help Pakistan to end all its problems in coming years," he said.
He said that the government had fixed the economic growth target of 5.3 percent, while the growth was seen from 5.5 percent to 6 percent.
He said that the main reason in growth was the economic policies of the government. During the past seven months of the current fiscal year, the country has witnessed an unprecedented growth of 15.06 percent in industrial production while the target was 8.5 percent.
He said that exports of the country have been increased by 14 percent, which are positive signs of the sustainability of the economy, while the imports in non-oil sector were reduced by 25 percent.
Investment, he said, has also shown a rise and the private sector credit has reached Rs 230 billion mark instead of Rs 90 billion last year.
The minister said that the stable economy has made the image of Pakistan better in the community of nations.
"We will not go to other countries for any loan as was the past practice. We will ask them for investment in Pakistan," he said.
The government has created an investment and industry-friendly culture in Pakistan and in this regard all the bottlenecks would be removed with the help of the private sector, particularly the business community.
Talking on consumer credit, Shaukat Aziz said that the government wants to create a middle-class in the country, as every one would have easy approach to car by easy leasing.
He said that the country is facing some challenges like reducing poverty, unemployment and illiteracy. The utility rates are high which are making the products expensive and least competitive.
"I agree that the prices of utilities including water, power and gas are a bit high. But, I assure you that with the passage of time it will be decrease," Shaukat Aziz said.
The minister said Pakistan has set the target of 6 to 7 percent growth rate during the next few years and infrastructure development was a key to sustain the growth.
He said the government has requested the donors to finance only those projects that have local ownership and capacity building.
He said that the Planning Commission is preparing a five-year infrastructure plan to help accelerate the process of economic development in the country.
The World Bank has agreed to assist the commission in formulation of the plan and arrange funding for its implementation.
The minister said the US economic package for Pakistan this year totalled 398 million dollars. Of this, 200 million dollars will be for debt write-off for which a notification to the Congress has already been sent and is expected to be finalised next month.
He said that Pakistan is committed to continuity and consistency of its reform agenda including policies for economic growth and socio-economic development of the country.
The minister informed that entire aid and donations to Pakistan will be under Pakistan Poverty Reduction Strategy Papers (PRSP).
He said the government's main focus is on alleviation of poverty and provision of better opportunities to people aiming at improving their living standard.
Speaking on the occasion, president, RCCI, Hussain Ahmed Ozgen said that the consistent policies of the government have led the country towards stability in economic and industrial sector.
But, he added, there is lot of room for improvement in the industrial sector.
He said that it is a failure on the part of government that the utility charges including gas, power, water and taxes including sales tax and import duty on machinery and raw material are very high. "These are reason of low industrial productivity in the country," he said.
He called upon the government to make sure that the prices of gas, electricity and water should be reduced in order to facilitate the industrialist to compete in the international market. Government, he added, should also reshape the tax system of the country.
Ozgen demanded of the finance minister to open a polytechnic institute in Rawalpindi in order to provide the local industries skilled force.
He said that the industrial estate established by the RCCI is lacking basic facilities like water, gas and electricity and if government provide these facilities it will prove beneficial not only for the government but also for the people of the region.
Former RCCI president Osman Khalid Waheed that this function was arranged to encourage exporters as they play an effective role in increasing the export of the country. "It is to celebrate the achievements in exports in the region," he added.
"During 2003, we have not only crossed 10-billion-dollar export barrier but also witness double digit growth in exports despite an appreciation in the rupee against the dollar," Osman Khalid said.
He said that the government, besides talking on forex reserves and industrial growth, should take appropriate measures to help resolve problems of the business community.
In the end, the export trophy awards were given to best exporters. Kohinoor Textile Mills got the first prize in textile sector, while Al-Qadir Textile Mills and Mishas Collection got second and third prizes respectively.
In woollen sector, Islamabad Woollen Mills was awarded the best exporter trophy. In cement sector, Fauji Cement Company and Askari Cement Limited were given best exporters award.
In pharmaceutical sector, Vety Care Pharmaceuticals and Shaigan Pharmaceuticals were given best exporters award.
In poultry sector, Pakistan Poultry Farms and Rawal Poultry were awarded with best exporters.
Dr Muhammad Aslam was given best businessman trophy, while Uzma Gul was given best women entrepreneur trophy.
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