March 30, 2002	Saturday	Muharram 15, 1423

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KARACHI, March 29: Pakistan’s dependence on commercial loans is now reduced to 600 million dollars, net total liability remains unchanged at 38 million dollars and net local monthly local debt-servicing has come down from 19 per cent in 1980s to 0.4 per cent, claimed Shaukat Aziz, federal finance minister on Friday evening.

Speaking at a dinner organized by the Overseas Investors Chamber of Commerce and Industry (OICCI) on Friday, the finance minister claimed that the government had managed to bring the inflation under 3 per cent. “Food-related inflation is even lesser than that,” he claimed. He recalled that Pakistan’s inflation ranged between 7 to 8 per cent a few years ago.

He said Pakistan’s debt liability had not increased during the last two-and-half years because the government had paid back substantial amount despite heavy odds.

He, however, conceded that the government had to do a lot more to improve the people’s standard and the direction of the national economy had been set to achieve that objective.

“We have come a long way,” he told a gathering of foreign investors and business executives of the multinationals and recalled that Sept 11 event had put an impact on the international economy affecting the local economy also. But, he said, the government had managed to turn these events in favour of the national economy stating that foreign exchange reserves now exceeded 5 billion dollars and are set to exceed 6 billion dollars by June next.

“These reserves have not been built up by borrowings,” he said.

He conceded that the government had not been able to do much for pushing up economic growth and alleviating poverty. But now, he said, the government had directed that the public spending be increased to 3.3 per cent.

In another context Shaukat Aziz conceded that domestic investors were showing confidence as expected but he said the foreign investors and OICCI were expected to play a major role.

The chief of the OICCI Moeen Fudda appreciated the efforts of the government for reviving the confidence of the government by making a turn around in the national economy.