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Friday March 29, 2024

Growth rate to be 8pc by 2025: Nawaz

By Muhammad Saleh Zaafir
February 10, 2017

Inflation to be maintained at single digit; fiscal deficit down from 8.6 to 4.2pc, tax to GDP ratio increases from 9.8 to 12.4pc and investment to GDP ratio from 14.9 to 15.2pc; woos foreign investment; corporate leaders eulogise govt policies

ISLAMABAD: Prime Minister Muhammad Nawaz Sharif said on Thursday Pakistan’s economy was targeted to grow over 8 percent between 2018 and 2025 while maintaining single digit inflation.

“As a result of sustained commitment to reform, key economic indicators have improved since the government came into power in 2013,” he said addressing the heads of international organisations at the Prime Minister’s Office (PMO).

“Over the past three years, the government has brought down the fiscal deficit from 8.6 to 4.2 percent, increased Tax to GDP ratio from 9.8 to 12.4 percent and investment to GDP ratio from 14.9 to 15.2 percent,” he said.

“Pakistan, with its sixth largest population in the world, 80 million middle class, blessed with human and natural resources, strategically located, politically stable, offering attractive policies is a destination no global player can miss,” the premier added.

The group of corporate leaders that attended the meeting belonged to the US, Australia, China, the UK, Canada, Italy, France, Spain, Sweden, Singapore, Germany, South Korea and Switzerland.

The prime minister urged upon the foreign businessmen to avail themselves of the country’s investment potential and “enjoy the first mover’s advantage”.He apprised the businessmen that Pakistan’s economic conditions were improving continuously with an objective to achieve 5% GDP growth rate from the current 3%.

He reminded that the government was aimed at achieving sustainable economic growth and mentioned several steps taken in this regard, including strengthened tax administration, rationalised annual subsidies and widened social safety nets.

“These steps reinforced macroeconomic policies, which resulted in lower budget deficit, increased foreign exchange reserves and low spending on energy subsidies.”He said the government was cognizant of the need for a comprehensive and contemporary policy framework that supported macroeconomic stability.

“We are well aware that international investors need stable markets backed by clear and consistent policies. We are committed to maintaining an enabling policy framework to attract foreign direct investment,” the prime minister said.He said the Vision 2025 mapped Pakistan to join the top 25 economies in the world leading to Upper Middle Income country status by 2025.

He said the PricewaterhouseCoopers had placed Pakistan at 20 in its projected list of 32 most powerful economies of the world in 2030. He mentioned that inflation had been contained, which had earlier touched 1.6 percent in October 2015 and had remained well under 3 percent since then.

He said that the industrial sector showed remarkable performance and registered agrowth of 6.8 percent during 2015-16 and was poised to do even better this year and onwards. Nawaz Sharif said since he came into office in 2013, the economy faced severe energy shortages, inflationary pressures, exchange rate volatility and a precarious security environment.

He said, however, at present the consumer market in Pakistan was growing at a very fast pace, including automobiles, housing, electronics, telecommunication, hospitality and online-retails sectors.

He said Pakistan was emerging as an expanding market for the US and European products. He mentioned that the government had devised a comprehensive plan to create investment friendly environment, particularly liberalised investment policies to welcome foreign investments.

“We offer incentives to attract new capital inflows, including tax exemptions, tariff reductions, infrastructure, and investor facilitation services,” he said.

He added that the Investment Policy (2013) was focused on reducing the cost of doing business in Pakistan, easing business with creation of industrial clusters and Special Economic Zones to attract foreign direct investment, all protected by legislation.He said the Pakistan Stock Exchange had been created to lower fragmentation of the market and was at par with global markets. “The bench mark index PSE100, crossed 49,000 in January 2017 and is touching new heights. Recently, 40 percent strategic shares of Pakistan Stock Exchange (PSX) were sold to a Chinese consortium,” he added.

He pointed that this divestment was the first such sale in a bourse in the regional markets and it also marks the first venture of Chinese bourse outside China.The prime minister also apprised the foreign businessmen of Pakistan’s strategic location on Asia’s premier trade, energy and transport corridor.

“It is also the gateway to the energy rich Central Asian States, the financially liquid Gulf States and the economically advanced Far Eastern economies,” he said.He said China Pakistan Economic Corridor (CPEC) was a key regional initiative for connectivity and shared prosperity of nations.

He said under CPEC, a portfolio of over US$55 billion had already been implemented while investment of more than US$35 billion in the energy sector was also being implemented.He said the corridor would substantially shorten transportation distances between Africa and Middle-East to Central and South Asian regions.

The prime minister said international economic agencies were upgrading ratings for the financial and economic stability of Pakistan. He mentioned that Standard & Poor’s (S&P) had upgraded its forecast of average annual GDP growth from 4.7 to 5 percent, World Bank forecast a GDP growth of 5.2 percent for 2016-17, S&P also expected Pakistan’s debt to fall below 60 percent of GDP by 2018.

The corporate leaders eulogised the policies of the government and appreciated the determination of Premier Nawaz.The CEOs from the UK included Henry Cookson, MD Henry Cookson Adventures, Britain; Julia Charlotte Chastel De Boinville, Clint Programme Manager Afiniti; George Justin Murray, MD Afiniti; Christopher Malcolm Farmer, EVP Afiniti; Thomas Hampden Inskip, MD Afiniti; Archibald Soames, Sr Manager Afiniti; Julian Lopez Portillo, Client Programme Manager Afiniti and Max Cooper Lintott, Client Programme Manager Afiniti. The business leaders from USA included Muhammad Ziaullah Khan Chishti, CEO the Resource Group and Hassan Afzal, Chief Technology Officer Afiniti. The business leaders from Italy included Alessandro Benetton, CEO Benetton Autostrade Pvt Equity; Carlo D’ Amelio, CEO Sant’ Anna- Holding Ibl Bancal-Spa; Fabio Corsico, Govt Affairs Director Kolon Group; Marco Alvera, CEO Snam; Cecilia Braggiotti, MD Afiniti and Lucia Baresi, Client Programme Manager Afiniti. The CEOs from China included Sichen Huang, Afiniti Advisor; Guo Ping, CEO Huawei; Linchun Chin, Youghi Yang, Jin Yi Hugo Ou, Non ED Sinolink Worldwide Holdings, China. The CEOs from other countries included Raymond Lee, Owner Kolon Group (South Korea); Rob Rankin, Chairman Consolidated Press Holdings and Roy Wyatt Beau, Client Programme Manager Afiniti (Australia); Lai Chang Wen, CEO Ninja Van and Li Huanwu, GM Afiniti and Hua Qianni, Centre Director (East China) (Singapore Consulate); Tanguy Catlin, Senior Partner Mckinsey and Jerome Geo.M.F.de la Croix de Castries, Country Manager Afiniti (France); Alonso Aznar Botella, Silent Programme Manager (Spain); Benedict Constantin Faber, GM Afiniti (Germany); Michel Grorges Portenier, EVP Afiniti (Switzerland); Timothy Gordon Raymond Nixon, GM Afiniti (Canada); Justyna Hanna Kozicki (Sweden) and Ali Raza Siddiqi, Director JS Group and Nadeem A. Elahi, MD and Country Head Pakistan, The Resource Group (Pakistan).