Adviser to the Prime Minister on Finance and Economic Affairs Dr Salman Shah on Friday evening said there was a sea change in the attitude of taxpayers and tax administration. With private sector gaining ground, he said there is a change of culture in tax administration and taxpayers attitude.
He was addressing a seminar on "Economic Performance of Pakistan and Challenges Ahead", as a guest speaker along with State Bank Governor Dr Ishrat Husain.
Tax net, the adviser said, has widened and a new culture of competition and confidence is taking roots.
Dr Shah added for the past five years, the GDP has shown signs of "solid growth", and if agriculture sector progresses well, attainments in this regard would be commendable.
Dr Salman Shah said Pakistan had 8 to 9 programmes with the IMF, which came to a successful culmination.
Pakistan's economy today, he said, is thriving. It is highly competitive. It is due to major reform programmes: some of which have been completed, while others are speedily underway.
He said the private sector has emerged fast, and is taking over, bringing corrective modes into fashion.
Some of the reforms, he added, were unique and of far-reaching favourable consequences. In this context, he referred to efforts made for good governance such as rooting out of corruption, introduction of local government system, devolution of power, empowering people at grassroots levels, and specific programmes.
Besides Pakistani American community, the packed gathering comprised experts from the WB, IMF, diplomats, professors from reputed educational institutions, students and former envoys to Pakistan and officials of the State Department.
He said rules of the game were changed and made transparent, and within six years, a phenomenal change in economic sphere of Pakistan was made possible.
Citing an instance of World Bank appreciation, he referred to the recent visit to Pakistan by its President Paul Wolfowitz, who was amazed to see the change in Pakistan's finance and economic sector, and the turnaround, and who said, "NAB is a good organisation to get back pilfered funds".
Of devolution plan, lending bodies had agreed it was greatest re-engineering drive in Pakistan.
The adviser told the gathering Pakistan today has a local government system in place, whose elections have been held, and it has proved successful in extending economic services to farmers and rural periphery "which by itself, is a great achievement".
About privatisation, he mentioned the PTCL which, he added, was on its way to becoming a totally privatised house.
Of the impact of improvement of national economy on rural areas, he said a new middle-class is fast emerging in rural areas as well, and enlisted sell of tractors, motorcycles, TV sets, automobiles, and subscription of mobile telephones. "Technology is selling briskly as also other consumer items."
Dr Ishrat, in his address, said Pakistan's economy has been built on such strong foundations that risks and vulnerabilities, which always arise, can be managed in a very meaningful manner without creating problems for the country.
Population growth rate in Pakistan has lowered to 1.9 percent, the governor told the seminar.
In response to a question, he said it was no more a high population growth, and next year, the rate would be 1.5 percent, ranging equal to those of India and Bangladesh.
Drawing attention to another aspect, he viewed that India has an edge of young workforce, which is the same in Pakistan, and it would prove to be an engine for swift development.
To another question, Dr Ishrat laid stress on efficient efforts to conserve important water resource - which is mainly used for agriculture. For water conservation, he said it was imperative to build storage dams, so as to sustain growth in agriculture.