Aziz responsible for economic turnaround: report

Society Pakistan & World Affairs
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ISLAMABAD: When Shaukat Aziz was asked to become Pakistan’s finance minister in 1999, he was looking at an economy in a shambles - foreign reserves dipping dangerously with the danger of bankruptcy around the corner.

However, four years on, the same economy is bustling with activity and hope for a bright future, thanks to the efforts of a man who was plucked out of an attractive job in Citibank by President Pervez Musharraf, says a report in Asia Link magazine.

The cover story credits the finance minister with the turnaround in Pakistan’s economy. When Aziz decided to take the plunge, the report said, he came to the job as a committed person. He was taking up a Herculean task, but he took as a mission, and not just another plush job.

The finance ministry’s economic advisor Ashfaq Hasan Khan says Aziz is an untiring person who inspires others. Cabinet colleague Owais Leghari says Aziz has brought with him vast experience of private sector and a professional who excels in his field.

After 9/11 it was feared that all the hard work done on the economic front would go down the drain. However, it was the finance minister’s acumen that he used the whole situation to the benefit of Pakistan, after the country became a front state in the fight against terrorism.

Despite the threat of terrorism, the economic front was kept thriving, as Karachi Stock Exchange crossed the 4000-points barrier, and became the star performer in 2003. When Aziz looks back the four tough years, he credits President Pervez Musharraf for the support and guidance, saying all this was made possible because he was working with a sincere person (Musharraf).

Daily Jang: Urdu News - Latest Breaking News update Pakistan - jang.com.pk

Credit where its due, although I believe work needs to be done in the Agriculture sector to reduce the cost of harvesting.

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I was reading the other day, that the government is now predicting the economy will grow by quite an impressive 6% this year, way up on its forecast of 5.3% at the beginning of the year.

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www.businessrecorder.com

ISLAMABAD (March 19 2004): Pakistan "back in business" with rising human development indicators; consumer prices and exchange rates stabilising; little inflation; domestic energy meeting leaping domestic demand; and economy growing at over 6 percent a year.

These were the comments of World Bank Vice President, Praful Patel in the Pakistan Development Forum (PDF) inaugural session here on Thursday.

"Remember just four years ago, the nation was on the brink of default on its external payments and today, Pakistan finding its way for the strong and stable economy, said Patel. And all of this with low interest rates, sound banking institutions, good governance; respect for the rule of law, which paved way for a future -which is achievable and within reach of Pakistan's citizens, he remarked.

Pakistan has reached here because of good choices, good economic policies and staying powerfully with those policies, he said.

GDP growth was a paltry 3 percent a year in the 1990s. Last year it was over 5 percent.

The fiscal deficit fell from 6 to 4 percent of GDP. And with tax revenues rising, interest expenses falling for the first time in over a decade, there was space enough for a significant rise in public investment, Patel said.

Let's look at interest rates: from a range of 16 to 18 percent you are now at 6 to 8 percent a year, Patel said. Pakistan's access to foreign market borrowing was tested only a few weeks ago: a $ 500 million Eurobond purchase at very competitive rates, he added.

World Bank VP said an aggressive privatisation programme, a substantial deregulation and let me note here that prices of key inputs and agricultural commodities are by and large market determined, all sectors are open to private participation.

Import tariff rates have been slashed; the financial sector has been restructured and privatised, he added. The commendable appearance of elected governments is beginning to strengthen governance; decentralisation to local governments is building greater public accountability, Patel said.

"As we celebrate the measurable advances of the past-four years that I have just listed, surely every partner and well-wisher to Pakistan's development must pause too," World Bank VP said, adding but, more than one third of this nation's population is poor and social indicators lag behind those of countries with similar per capita incomes.

To meet these challenges, he said, "My first choice was infrastructure and investing in infrastructure is one key to sustain growth and increase the delivery of essential services to the poor."

Patel concluded saying that the people of Pakistan have legitimated hopes for a better future, for their children surely

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Great stuff. Pakistan is taking off! :k: