Economic growth accelerating: Jamali

Prime Minister Mir Zafarullah Khan Jamali on Saturday said the economic growth of the country has been accelerated owing to sustained efforts for invigorating economy through policy of deregulation and privatisation of state-owned entities and promotion of private sector participation.
"It is important, however, to pursue our optimism with much greater effort. And, this is only possible through increased participation of private sector to enhance trade and investment," he added.
While speaking at the 6th annual convention of Pakistan American Business Association (Paba) here, the Prime Minister said Pakistan's economic situation has improved significantly during the last three years.
He said economic revitalisation and economic stability is evident from across-the-board improvement in most macro-economic indicators.
He said stable exchange rates and declining interest rates are positive developments for investors' confidence.
Inflation is well under control (less than 4 percent), debt burden has been substantially reduced and the GDP is expected to grow by 6 percent, exports are expected to cross $12 billion, foreign exchange reserves are very healthy, Pakistan's credit rating has improved and stock market is buoyant, he said.
The oversubscription of the recently launched Eurobond is a testimony of international investors' confidence in the growing economy of Pakistan, he added.
The Prime Minister said the economic growth could be achieved due to the result of attractive investment environment.
"Today," he said, "opportunities for investment in Pakistan are abound. All economic sectors are open to Foreign Direct Investment (FDI), where foreigners can hold 100 percent equity."
Transfer of funds is freely possible, including remittance of capital or profit, he said, adding: "Our privatisation programme offers highly profitable investment opportunities in various economic and social sectors."
Foreign private investment is fully protected under the law and Pakistan has recently entered into a Trade and Investment Framework Agreement (TIFA) with the USA, which may lead to a Free Trade Agreement (FTA) with the United States, he added.
Jamali said the USA is the largest trading partner of Pakistan and the most important export destination for Pakistani products.
He said the USA is one of the very few countries with whom Pakistan is continuously enjoying a favourable balance of trade for the last five years. During these years there has been a tremendous increase in exports to the US.
The United States is also the primary source of foreign investments in Pakistan and more than 70 American companies are profitably engaged in Pakistan in the oil and gas, IT and telecom, financial, power generation and pharmaceutical sectors, he added.
He said enormous scope for expanding economic relations exist between the two countries and the American companies should take advantage of the emerging opportunities being offered by Pakistan.
He said potential investors from the USA can invest in IT & Telecom, textile industry, small and medium enterprises, environment technologies, petroleum exploration - onshore as well as offshore - mineral development, petrochemical; infrastructure (roads, ports, airports, industrial parts), agro-based industries, social sectors (health, education and technical training).
Prime Minister Jamali said peace and security are pre-requisites for economic development and prosperity and Pakistan's persistent efforts for peaceful resolution of outstanding issues in the region, including the Kashmir dispute, have resulted in the resumption of composite dialogue with India.
The framework agreement for a South Asian Free Trade Area (Safta), signed during the Islamabad Saarc summit in January this year, provides the forum for greater trade and investment opportunities in the region, he added.
He expressed the hope that stability in Afghanistan would lead to more promising economic opportunities in the Central Asian republics.
He said the construction work on a new port at Gwadar and a coastal highway to link Gwadar to Karachi is progressing and these projects will be completed on schedule towards the end of 2004.
Establishment of a free trade zone around Gwadar is in the offing to augment production facilities either for exports or local consumption.
The Prime Minister said overseas Pakistanis have a very important role to play in the progress of this country and not only do they have capital resources, but also excellent talent, knowledge and latest know-how that they can transfer to this country.
He assured businessmen that the government will provide them all possible facilities and support.
Jamali said Pakistan-American Business Association can raise the awareness about the opportunities for investment in Pakistan and can work towards forming linkages between Pakistani companies and US Businesses for outsourcing work to Pakistani companies in oil, gas, textile, leather, as well as consumer goods sectors, he added.
The Prime Minister said in non-traditional exports, software sector provides a huge opportunity and the association, in collaboration with Pakistani businessmen, should optimise this opportunity for profitable ventures between business partners of both the countries.
"We look towards US support for promoting private sector's trade and investment, market access, US financial and technical assistance to support our efforts to put Pakistan on the path of sustainable growth," he added.
He said Pakistan embassy in the USA is being directed to organise investment conferences and seminars in collaboration with Paba in US to keep foreign investors updated on investment opportunities in Pakistan.
The Pakistani community in the United States has excelled and diverse professions and fields. The people and the Government of Pakistan are proud of these achievements, he said adding "You are a source of immense strength for Pakistan's relations with the United States. Your contribution has provided much needed support to Pakistan's economy."
Calling upon the expatriate Pakistanis, Prime Minister said: "You should not forget what we were in the past and make efforts for the further progress in the life."
He said: "It is in our culture and training to remain committed to our national interests and while living abroad you should always remember respect and honour of the country."
The expatriates should also abide by the rule and law of that country in which they are living and earning livelihood, he added.
Senate Chairman Muhammadmian Soomro, speaking on the occasion, said expatriate Pakistanis always keep respect and dignity of the country foremost while performing any task abroad.
He said Pakistan is a big asset for Pakistanis and they should take care of it.
Soomro said Pak-American Business Association is doing a good job for the promotion of trade and economic relations between the two countries.
He said there is a vast scope of co-operation between the two countries and it should be exploited in an appropriate way.
James Gilmore III, former Governor of Virginia and leader of the US businessmen delegation, observed that co-operation between Pakistan and America would further grow in the days ahead.
"We are honoured to stand shoulder-to-shoulder with Pakistanis here," James Gilmore said.
He said Paba is making a lot of contribution for enhancing economic co-operation between the peoples and governments of Pakistan and the United States.
He said tremendous scope of co-operation exist in many fields including education, technology and information technology between the two countries.
Other speakers included Paba leaders Siddique Sheikh, Zia Hassan, Zahida Shah, Maqsood Chaudhry, Hanif Akhtar and Rashid Chaudhry.