Countrys economic health improving: Gilani.

KARACHI, November 14, 2009 (Balochistan Times): Prime Minister Syed Yusuf Raza Gilani Saturday said countrys economic health has improved significantly despite international and domestic problems and government was taking effective measures to create an enabling environment for growth of business. Addressing the 33rd FPCCI export awards ceremony, the prime minister said the government was conscious of the need to further bring down the cost of doing business in Pakistan and necessary steps were being taken on urgent basis. The key policy making institutions understand that the only prescription to survive in the existing tough situation is to become more competitive, quality conscious and innovative, Gilani said. He said Pakistani business community can compete in the international market effectively while keeping these principles in view. He also assured that the FPCCI would be taken into confidence on all important policy decisions. He said Pakistans real GDP growth was likely to remain close to the target of 3.3 per cent during the fiscal year (2009-10) and the foreign exchange reserves have risen from US 6 billion to $14.7 billion. He said it has led to improvement in Pakistans sovereign rating, while remittances from overseas Pakistanis have hit a record mark of $800 million in October 2009. Gilani said the issues like falling exports competitiveness, lack of sophistication, diversification of products and markets stem from structural weaknesses inherent in the economy and have been addressed through a medium term plan called, Strategic Trade Policy Framework 2009-12. He expressed confidence in the industry, and said the business community has the potential to gear up our economy. With your constant efforts towards economic betterment, we would be better positioned to address the core issues of poverty alleviation and job creation in the near future. He hoped that with the cooperation of the private sector the government shall achieve these objectives. Gilani said Ministry of Commerce as part of initiative has recently provided Rs. 27.3 million from Export Development Fund for opening of FPCCI offices in China and Brussels for better export marketing. Similarly, the ministry has provided Rs. 9.380 million from Export Development Fund to FPCCI for installation of video conferencing facility at FPCCI offices at Karachi, Lahore, Islamabad, Quetta and Peshawar. The prime minister said a comprehensive Textile Policy 2009-14 has also been announced to revive the textile sector through Textile Investment Support Fund of Rs. 40 billion. He said the Strategic Trade Policy Framework (SPTF) provides assurance for continuation of trade policy for three years and the businesses can plan their production and export orders accordingly. The important policy initiatives under SPTF are certainty for capital cost, reliability of electricity supply at mutually agreed time by the Electricity Distribution Companies and insurance cover for visiting buyers. The Policy has been set in motion and the initiatives are at various stages of implementation. The prime minister said Textile Policy envisages developing international and domestic demand driven capabilities, infrastructure improvement and skill development. Besides it also focuses on standards for international compliance, increasing productivity, improving quality and ensuring optimum utilization of resources. He said the policy aims at achieving textile exports to reach a target of $25 billion in five years and would increase employment by 100%. The policy focuses on investment of $8 billion by the private sector towards increased capacities while government would invest in infrastructure, skill development, marketing and information technology. Gilani said the policy has been set in motion and is widely hailed by all textile sectors. Ministry of Textiles has issued notifications on business processes and Finance Division has released Rs.5 billion to State Bank for the purpose. He also acknowledged the support of the business community at the time of national disasters. Their fund raising movement for displaced persons is highly commendable, and urged them to play the same role for the displaced people of North and South Waziristan. He said government was cognizant of the fact that military operation was no solution and was working on the reconstruction of devastated areas and was making social and economic reforms. He said government was taking all measures to bring normality to the situation by maintaining law and order situation so that the business community has more confidence. He said lot of investment was coming into Pakistan and it reposed confidence in the business friendly policies of Pakistan. He said the Friends of Democratic Pakistan have accepted proposals for reconstruction of Swat and Malakand and for projects to boost energy production. The prime minister also announced setting up of a Martyrs Fund for the personnel of Law Enforcement Agencies in all the four provinces and announced seed money of Rs fifty million for each. He commended the role of police and other agencies in countering the terrorists and for sacrificing their lives to protect their countrymen. Gilani also announced contribution of the federal government for setting up a university in Karachi. He said government will strengthen the existing electricity production and distribution system. He said the representatives of FPCCI on various government institutions are already represented but more inductions would be considered. He said the winners of the export award can be encouraged to aim even higher for which they would need to improve quality and establish credibility in the foreign markets. The Federation of Pakistan Chambers of Commerce and Industrys Annual Export Awards ceremony awards 33rd Export Awards to exporters from all over the country as recognition of their export performance during the year. The event was attended by Governor Sindh Dr. Ishrat-ul-Ebad Khan, Chief Minister Syed Qaim Ali Shah, Minister for Commerce Makhdoom Amin Fahim, President FPCCI Sultan Ahmad Chawla, CEO TDAP Syed Mohibullah Shah.

(THROUGH ASIA PULSE)