Forex reserves $14.7bn; GDP to stay 3.3.pc

Amanullah Khan

Karachi—Expressing confidence over gradual economic turnaround of the country, Prime Minister Syed Yusuf Raza Gilani has said that despite tough times the would rate of real GDP growth likely to be around 3.3 per cent during the fiscal year 2010 while the foreign exchange reserves have risen to a respectable level from $ 6 billion to $14.7 billion.

Discussing country’s economic health he said that there are positive signs of improvement in the economy despite international and domestic problems. The government is however taking effective measures to create enabling environment for growth of business.

Addressing prominents of the trade and industry at the 33rd FPCCI export awards ceremony held at the Governor’s House Saturday, he said the government is aware of the fact about high cost business and need to relax the cost of doing by taking corrective steps on urgent basis.

The policy making institutions also understand that the key 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 assured the FPCCI that it would be taken into confidence on all important policy decisions. He said improvement in Pakistan’s sovereign rating was helped by remittances from overseas Pakistanis that hit a record mark of $800 million in October 2009.

Gilani said the issues like falling exports lack of diversification of products and markets stem from structural weaknesses inherent in the economy. These factors 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 relating to poverty and job creation in the near future.”

He hoped that with the cooperation of the private sector the government would achieve these objectives. 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. 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.

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 deter for Commerce Makhdoom Amin Fahim, President FPCCI Sultan Ahmad and Chawla, CEO TDAP Syed Mohibullah Shah.