Prime Minister Shaukat Aziz on Tuesday gave a detailed overview of economic reforms to British investors and asked them to see themselves the remarkable progress Pakistan had made in creating conducive investment environment during last few years.
Addressing Pakistan Britain Trade and Investment Forum in Asia House, the Prime Minister said, Pakistan had undergone a major transition since President Musharraf had taken the charge.
"We have introduced major, broad-based economic reforms," he said and added, deregulation, liberalisation and privatisation are the basic principles on which the reforms were based.
"We have made tremendous progress but lot more needs to be done and we are working on introducing second generation reforms. Our reforms are based on fundamental policies which are not going to change," he said.
The Prime Minister said the government has also institutionalised the reforms despite the resistance by the vested interest. The vested interest came with the vengeance but, "We were committed to reform the economic sector and we did it."
As a result, Prime Minister Shaukat Aziz said, we are now seeing the emergence of middle class and rural poverty is declining.
He said there is a level playing field for the investors in Pakistan and we are working on improving the necessary infrastructure to facilitate the local and foreign investors.
Talking about telecommunication sector, the Prime Minister said it had made tremendous progress in last two years. The number of cell phone users increased from 3 million to 24 million in a short span of time.
He also gave brief overview of privatisation process in Pakistan and said the government had conducted the privatisation of large entities in a very open and transparent manner.
"We are proud of it as it has restored the confidence of investors," he added.
The most difficult part of this reform agenda, the prime minister said, was tax reforms. The tax collection machinery was marred with corruption, highhandedness and delays.
Everybody tried to scare us and opposed the reforms but we undertook it and despite all reservations, the tax collection increased after the reforms.
He said the basic principle we followed was "lower tax rates and higher collection."
The prime minister said industrial, financial and services sectors were fast growing. New airlines are coming and new hotel projects are coming up.
"I have inaugurated three cement plants in one day worth half a billion dollars," the prime minister said.
"We have the cheapest labour in the world that enhances the cost effectiveness of products. Our work force is trained and hard working," he said.
The prime minister said, unfortunately Pakistan has image problem and people have some wrong perceptions. "Come and see yourself the environment in Pakistan. Pakistan of today is very different from Pakistan of yesterday."
He said Pakistan''s potential lies in the strategic location and the access to the region and Arabian Sea. It can serve as trade and economic hub in the region.