Govt policies to make private sector engine of growth: Gilani

ISLAMABAD, May 4 (APP) - Prime Minister Syed Yusuf Raza Gilani Tuesday said the government clearly recognizes the private sector as the engine of growth and is taking necessary policy measures to unleash its full potential. In his opening statement while chairing a meeting of the Council of Businesspersons here at Prime Minister House this afternoon, he said the government takes the business community as a partner in the national development, as both work in their own spheres for the betterment of the common man and for the greater welfare of the society. The Ministry of Finance has been asked to provide immediate relief to the common man, he said, adding the government would extend full support to the business community. The prime minister said the Annual National Budget is the most important policy document, which sets into action the policy priorities of the government for the coming year. He observed that the National Budget also influences the private business environment in many ways and determines its pace and direction during the year. “Therefore, my interaction with the distinguished leaders of the business community today comes at the right moment,” he added. The premier assured that the government is fully committed to making the domestic environment business friendly. He said the Trade Policy, the Textile Policy, the Investment Policy, the Energy Policy and other policies are aimed at attracting greater private participation and support development of private capital in the country. Prime Minister Gilani stated that as a result of bold policy measures taken over the last two years, macro-economic stability has been restored, manufacturing has begun to pick up, business climate is improving and exports are on the rise. He observed that challenges remain but the worst is over. The prime minister acknowledged that the business community in this country works in the most challenging environment. He said regulatory over-burden, energy shortages, high cost of doing business and security of life and property are yet some of the issues that confront the business on a daily basis. He assured that the government is committed to resolve these problems which were both structural and long term with support and cooperation of the business community. Reposing his confidence in the business community, he said, “together, we will make Pakistan prosperous and stronger.” Welcoming the suggestions of the business community, the prime minister assured them  that the government would consider their inputs seriously. He observed that there is no point in making policies without taking the beneficiaries on board. He said consultation and consensus is the hallmark of the present government and through this policy of building consensus, the government have addressed long term structural issues such as 7th NFC Award, 18th Constitutional Amendment, Provincial Autonomy and very recently Energy Road Map which came out of the Energy Summit. Prime Minister Gilani said the government is facing multiple challenges both economic and non-economic. He observed that the government’s primary responsibility is to ensure protection of life and property and to create a sound regulatory environment for private business. He believed that the business community of Pakistan has huge potential which promises a better and a stronger Pakistan. The prime minister expressed his firm belief in the destiny of his great nation. He observed that in the coming months and years, the structural problems will be finally eliminated. He asked the Advisor on Finance and his team to consider the Council’s proposals seriously and to ensure broad based and extensive consultation on budget proposals. He expected the business community to make recommendations keeping in mind the challenges being faced by the government. He also asked the finance advisor to make the next budget business friendly and supportive of industry. He observed that future of this country is in industrialization and value addition as subsistence farming is not enough to sustain rapidly expanding population. Therefore, he directed that the next budget must support the growth momentum in business and industry. The prime minister also reminded the business community of their responsibility to undertake business operations in nationally and socially responsible manner. He sought active support of the business community to implement the government’s development agenda including energy conservation. He said the government also expects the business community to contribute to government revenues through taxes at a time when the country needs more financial resources to fund expenditures on security and settlement of IDPs. Concluding his statement, the prime minister invited the business leaders to share their budget proposals with the government. Finance advisor apprised the meeting that interaction of Ministry of Finance with the Business Advisory Council representatives was very fruitful and encouraging. He said the deliberations were in depth and comprehensive covering all aspects of economic activity. Tariq Saeed, President FPCCI appreciated that this is the first time prime minister himself is interacting with the Business Council. He assured that the business community is with the government during these difficult times. He opined that the discussion would help in improving tax collection, eliminating red tapism and expanding industrial base consequently decreasing unemployment. He suggested that the existing power plants should be renovated to meet the immediate energy needs as well as power situation should be reviewed on weekly basis. He observed that they were losing Rs.230 billion per annum due to energy shortage and US $ 2.3 billions are being lost in exports. The representatives of the business community said that the government should give tariff incentives to the businessmen on the pattern of Malaysia and Indonesia. They said the entire focus had been on the agriculture sector but now the government should give preference to the engineering sector as well. They suggested that the agro-based industry should be promoted in under developed areas as the labour in these areas is only trained. They also suggested that the banks need to revise their mark up policies according to area and nature of industry. They opined that efforts be incurred to expand trade with Central Asia and African countries. They also proposed that the training institutions be opened in all areas and special incentives be given to expatriates remitting foreign exchange from abroad. They also suggested that the public dealing offices and banks should not be closed on Saturdays. They also demanded that the procedures for putting up new industry be simplified. The business representatives also proposed that the mining industry should be encouraged. With value addition, minerals and precious stones could enhance exports to earn foreign exchange. They also demanded that the war torn region of the Federally Administered Tribal Area (FATA) should be exempted from the General Sales Tax.