Opponents will also lose next election: Dar

Says there would be iron hand on assets of offshore Pakistanis; 40pc shares of PSX given to Chinese; no politics should be done on country’s economy

KARACHI: Finance Minister Senator Ishaq Dar has said that no politics should be done on the economy of the country.

Addressing the business community at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here on Friday, Dar said his dream regarding the economy of the country was coming true and due to this, the opponents were not feeling well because they were going to lose the 2018 elections also.

Dar said he could guarantee that the opponents will lose the 2018 elections, adding there would be an iron hand on the assets of offshore Pakistanis. He said if anything becomes a hurdle in the way of the interests of the country, it should be bulldozed. He said the government will not bow on the NAB ordinance and it will be passed from a joint sitting of parliament. "We will jointly take the country forward."

He said Pakistan is not of any individual but it is the country of 200 million people. He said Pakistan is going to become dignified, sovereign and prosperous. He said the dreams of opponents could not come true. He said Pakistan could become the 18th biggest economy of the world in 2030 instead of 2050 prediction. He said loadshedding in the country will be overcome by the end of the current year. He said 10,000 megawatt electricity will be included in the system by March 2018. He said the projects of 15,000 megawatt electricity will be completed till 2023.

He said so far the government has spent Rs300 million on the Operation Zarb-e-Azb. He said it is the resolve of the civil and military leadership to make Pakistan peaceful, adding that Pakistani soil will not be allowed to be used against any other country. He said the country was moving forward under the leadership of Prime Minister Nawaz Sharif.

Meanwhile, addressing a ceremony in which the Pakistan Stock Exchange and the Shanghai Consortium of China signed a 40 percent share purchase agreement here on Friday, Finance Minister Ishaq Dar said it is a historic occasion as the Chinese consortium will bring their expertise to the Pakistan Stock Exchange.

He said the Pakistan Stock Exchange had acquired the status of one of the fastest growing stock exchanges in the region. International organizations have acknowledged the economic progress in Pakistan.

Ishaq Dar said the Pakistan Stock Exchange has already crossed 50,000 points for the first time in the country's history, which is a historic achievement. He said the current foreign exchange reserves of the country are equivalent to five months of imports bill.

Ishaq Dar invited the opposition parties to join hands with the government for strengthening the national economy. He said the companies ordinance will be implemented adding that if it was not approved in parliamentary committees, then it will be presented in a joint session of parliament for approval. He said this will take three to four months and this law will be implemented at all costs. He said this law has to be implemented. "We are ready to give space to the business community to correct the things within the legal framework."

Explaining how the deal between the Chinese consortium and PSX will help the former's growth, Dar commented that it will improve the stock exchange system with modern technology and share trading methods.

The finance minister went on to say that the Sino Pak corridor is of vital importance, especially since it plays a key role in economic development. Pakistan's economy expanded 4.7 percent in fiscal year 2015 16, which reflects the country's continuous upward movement since 2009 when the rate crumbled to 3.6 percent. Since then, the volatility, most of it being positive, has averaged at around 3 percent.

In addition, industrial growth during the same period was clocked at 6.8 percent. Dar reasoned that the low interest rate and inflation were the main factors behind the bump in industrial production.

Dar informed that the capital markets will soon introduce pension and gratuity funds while the privatisation policies will open up new platforms for foreign investors.

However, Dar noted that the pace of advancement in Pakistan's agricultural sector has been unsatisfactory stating that it was below the expectations. He also acknowledged that both local and foreign investment has not been up to the mark.

Lauding the progressive development in his speech, Dar said the sale of 40 percent stake of the Pakistan Stock Exchange [to the Chinese consortium] is a historical moment for the country. The finance minister further congratulated the two parties on the agreement.

Dar also shed light on the Sino Pak relations, saying that given the two countries' mutually-beneficial endeavors, the latest stake sale is another milestone.

Explaining how the deal between the consortium and PSX will help the former's growth, Dar commented that it will improve the stock exchange system with modern technology and share trading methods.

He also said the privatisation policies will open new avenues for foreign investors since investment has not been satisfactory while the low interest rate and inflation helped boost the industrial production.

Meanwhile, speaking on the occasion, Chinese Ambassador Sun Weidong congratulated Pakistani investors on the agreement and hoped this will usher in a new era of stock exchange business in Pakistan.

State Bank of Pakistan Governor Ashraf Wathra was also present at the ceremony and conversed with the those present. He remarked nobody can improve an economy alone.

Wathra elucidated with the example of Western countries which have persistently boosted their economies through strategic linkages with neighbouring and similar nations. It is in this context that he pushed for better relations with fellow countries, case in point China.

According to the central bank's governor, the latest deal will be advantageous for the whole South Asian region. Pakistan and China have already joined hands under the China Pakistan Economic Corridor (CPEC) which will connect the north all the way down to Gwadar, Balochistan.

Meanwhile, addressing the FPCCI ceremony, Ishaq Dar said today the State Bank of Pakistan has reserves of 18 billion dollars. He said the biggest package has been given to the agriculture sector and 180 billion rupees package has been given to the business sector. He said that the Circular Railway project for Karachi has been approved in CPEC adding that mass transit projects for Peshawar and Quetta have also been included in the CPEC project. He said the K4 project for Karachi will be financed by the federal government.

He said toddlers say the debt has been doubled in the last three years adding that when they left at the time of 1999 coup, it was less then 2,946 billion rupees on 30th June, 1999. He said Pervez Musharraf left it less then 6,000 billion rupees adding that during the PPP's tenure, it reached 14,500 billion rupees. He said the PML-N also paid Rs480 billion circular debt of PPP's tenure after taking charge of the government. He said the debt is increased with the approval of parliament.

Dar said he is writing an article which will be completed by the end of this week adding that the people should read this article. He said an improvement of five billion dollars has occurred in the external debt.