ISLAMABAD : The President, General Pervez Musharraf has declared that there will be no change in Government's economic, taxation and investment-friendly policies in post-October period.
He was addressing the Businessmen Convention in Islamabad on Wednesday. The President assured that the policies of the Government continue to be traders' friendly so that they can play their role in economic development and poverty alleviation.
Responding to suggestions made at the convention, the President said the country couldn’t prosper without resource generation. The President assured traders that if there were increase in revenue collection, the government would like to reduce the rate of GST. He, however, said these matters would be decided during budget and the Government will consider all suggestions of the business community seriously.
General Pervez Musharraf, however, made it clear that when there is a clash between national and individual interests, the national interests would be kept uppermost.
He urged businessmen to make investments to strengthen economy, create employment opportunities and reduce poverty.
The President said the economic strategy of the Government has started paying dividend as all the economic indicators are presenting a sound picture. He said when the present Government assumed power, the country was at the verge of debt default and foreign exchange reserves stood at merely 500 million dollars.
He said today both the West and the East are ready to assist Pakistan as the country has established its credibility with the international financial institutions. It is because of this credibility that these institutions are lending us at 0.75 % low interest rate.
Enumerating achievements of his government in economic field, he said fiscal deficit has been reduced, inflation brought down, and Foreign Exchange reserves increased.
He said it goes to the credit of the present Government that it has kept constant the external debt of 38 billion dollar. Previously, it used to surge by about two billion dollars annually.
He said commercial debt has been reduced to only 600 million dollars and the rest has been paid back.
Referring to fudging of figures by the past governments he said the Government took bold decision of admitting the reality. He said in case of admission the country was expected to suffer a loss of one billion dollar but instead our credibility with the international financial institutions enhanced and we had to pay only 30 to 35 million dollars.
He said domestic debt, which used to surge at the rate of 15% per annum and constituted 50% of the GDP has now been brought to 45% of the GDP and the growth rate is only 6 percent.
The President was confident that the foreign remittances would reach two billion dollars this year while export, despite worldwide recession, would touch the mark of nine billion dollars.
The President the country can progress only if there is genuine democracy and clean politics. With this in view, political restructuring is being done and necessary constitutional amendments would be made.
Explaining why he opted for Referendum, the President said there was whispering and rumormongering. Attempts were being made from outside to destabilize his government and for this purpose crores of rupees were being pumped for several months. He was confident that Referendum would strengthen pro-reform forces with positive impact on the October elections.
Earlier, the President of the Federation of Pakistan Chambers of Commerce and Industry, Mr. Iftikhar Ali Malik in his address of welcome said inconsistent economic policies harmed the business community in the past. He said the community is in favor of continuation of economic policies initiated by the present government.