News
Wednesday, March 23, 2011
Zardari invites leaders for resolving economic challenges* President says two Pakistan-EU summits held so far
* Long-term cooperation with UK, France, Germany, Italy, Spain helped advance our economic agenda
Staff Report
ISLAMABAD: President Asif Ali Zardari on Tuesday invited the political leadership of the country to develop consensus for resolving five major economic challenges.
During his address to the joint session of parliament, the president said, “We need to build consensus on resolving issues like energy shortage, circular debt, taxation reforms, restructuring of public sector entities and documenting the economy.”
Highlighting some of the successes made during the three-year tenure, the president said that negotiations were underway for a Pakistan-Gulf Cooperation Council Free Trade Agreement.
He said that for the first time, Pakistan had engaged with the European Union at the summit level. “Two Pakistan-EU Summits have been held so far. Long-term cooperation with the UK, France, Germany, Italy and Spain has helped advance our economic agenda.”
On agriculture, the president pointed out that despite the floods, agriculture had registered progress. “From a wheat-importing country, Pakistan has become a wheat-exporting country.” About the energy sector, he informed the parliamentarians that urgent steps have been taken to meet the energy challenge. More than 1,800MW of power has been added to the national grid during the last two years.
He said that alternate energy sources, including wind power were being exploited. To exploit vast Thar reserves, work on a pilot project has started, whereas work on 970MW Neelam-Jhelum Hydro project is in progress.
He announced that the ground breaking of the 4500MW Basha hydel project will take place next month and the up-gradation of Tarbela will be completed by the end of 2011.
The president noted that Pakistan’s economy had historically been hit by power shortages. A major reason for this is the absence of continuity in policies. The energy sector has suffered because these policies were thoughtlessly reversed.
He called upon the business community, to give ownership to the economic policies, regardless of which government gives the policy.
He stated that the government has embarked upon a comprehensive plan to address the economic challenges and explained that reduction in non-development expenditure to cut expenses is implemented, reforms in power sector were underway, restructuring of public sector enterprises were already started, the government was incentivising remittances and special programmes for poverty alleviation had also been started. .
The president said that making tough decisions was the responsibility of the leadership. “We are not afraid to lead; and we know the way,” he said.
The president explained different measures to put the national economy on right path, such as reduction in cabinet size, rationalisation of subsidy regime and tax reforms to mobilise resources. He said that tax net was being expanded through the introduction of the Reformed General Sales Tax (RGST).
The president termed the 7th National Finance Commission award after a gap of 19 years, a major achievement. “As a result, over Rs 300 billion of additional revenues have been transferred to the provinces. The provinces have been given the right, to collect GST on services. Collection of direct and indirect taxes has increased by eight percent and 12.5 percent, respectively. “In 2007, foreign remittances were $6.4 billion, which constantly increased and set to cross the $11 billion mark this year — a record for now. Foreign Exchange reserves have reached $17.5 billion – also a record for now.
As part of government’s pro-poor policies, he said that in the name of Benazir Bhutto, an Employees’ Stock Option Scheme has been introduced, transferring 12 percent shares to workers, in state-run enterprises, which will benefit 500,000 families. Also over Rs 74 billion have been disbursed to the poor beneficiaries, through the Benazir Income Support Programme and Mobile Phone Banking has been launched for the transparent transfer of benefits, he added.
Courtesy www.dailytimes.com.pk