Trade and industrialist bodies can play a pivotal role in positioning Pakistan well to get a lion's share in the World Trade Order (WTO) regime and tackle serious issues like poverty and unemployment by increasing per capita income.
This was stated by the representatives of the traders and industrialists at a reception given by Lahore Chamber of Commerce and Industries (LCCI) to Islamabad-based ambassadors of the Muslim countries here at a local hotel.
Foreign minister Khurshid Mahmood Kasuri was the chief guest on the occasion.
In his welcome address, LCCI president Mian Misbahur Rehman appreciated the government policies. He said the outgoing fiscal year was indeed an eventful year for the country in which real GDP grew by 8.4 percent against 6.4 percent of the last fiscal year.
The LCCI president added that this was the third year in a row when Pakistan's economy surpassed its growth targets by a considerable margin helping Pakistan join Singapore as the second fastest growing economy of Asia after China - an achievement that makes every Pakistani feel proud and elevated.
Mian Misbahur Rehman said that the economic stability has been brought about by strategic planning made by the government. According to him, strong economic push has renewed confidence of the private sector. The country, he said, changed its policy of borrowing from the International Monetary Fund (IMF), which carried high rates of interest and softer loans from other sources were sought.
The LCCI chief maintained that a more recent example was the provision of $440 million loan from Japan at interest rate of 1.3 percent. He said debt burden of the country was further reduced through rescheduling of loans by the government from the donor agencies.
FPCCI former president Iftikhar Ali Malik said on the occasion that Pakistan's decision to act as a frontline state against terrorism also played a very positive role in improving the economic indicators of the country. As a result of this policy, he said, Pakistan was able to improve its image across the world and to obtain financial assistance of $3 billion from USA.
Iftikhar Malik added that Pakistan also successfully issued Euro Bond and the first Islamic Bond (Sukuk) to raise funds for development. As a result of these policies, he maintained, the country's domestic and external debt burdens have considerably declined.
He said that Pakistan's growing economy and its strategic location as a regional hub - a principal gateway to Central Asian Republics, large consumer market, abundant natural resources, cheap but skilled labour, well established infrastructure and liberal investment friendly policies offer immense opportunities for foreign investment.
He said foreign investment in Pakistan has been facilitated by the government through a number of incentives and now all economic sectors were open to foreign direct investment.
Iftikhar Malik said that oil & gas, engineering goods, mining, infrastructure, power, IT & telecom, chemicals, agro-based industries and SMEs were potential areas for investment.
FPCCI vice president Zubair Malik said in his address that mark up on the bank loans was significantly reduced and the country saw the largest ever expansion of private sector credit in 2004-05, which was used in productive investment.
After six years of extensive fiscal reforms, Pakistan was able to attain fiscal stability by collecting Rs 591 billion as revenue against the revised target of Rs 590 billion during 2004-05.
He said the government generated additional funds for development expenditure by offloading its stake in the public sector entities.