November 21, 2003	Friday	Ramazan 25, 1424

KARACHI, Nov 20: Finance Minister Shaukat Aziz has urged the investors to gear up and come out with new offerings in the stock markets where prospects were never better than now.

Speaking at an Iftar party on Thursday at the residence of Arif Habib, the finance minister expressed the hope that foreign funds would come in the stock markets with further improvement in investment environment.

State Bank Governor Dr Ishrat Hussain, business leaders and stock brokers attended the Iftar party.

He made a specific reference to the oversubscription to the recent OGDCL offering and informed the stock brokers and businessmen that more such offerings were on way to the stock markets.

“The macro-economic indicators are positive, bank rates are low and the Security Exchange Commission of Pakistan has proved to be a prudent regulator,” he said, adding a perfect stage has been set for long-term investment plans.

He informed the gathering that Cyprus-based Capital Intelligence had upgraded Pakistan’s rating, which would help in obtaining loans at lower rates. Flotation of Eurobonds in near future should help in improving Pakistan’s image abroad, he said.

The minister was confident that Pakistan’s economic growth in the current fiscal year would exceed the target of 5.1 per cent. “Industrial growth is on track and has shown a growth of 11.7 per cent in first quarter, which is a record high,” he said.

The finance minister attributed the growth in industrial production to the growing demand in the market for construction, consumer goods, appliances, textile products and other goods. Demand has increased because of the consumer financing and housing loans, he pointed out.

Mr Aziz also made a specific reference to the government’s decision on Wednesday to increase support prices of wheat to Rs350 from Rs300 per 40 kg. “This increase would fuel the rural economy and improve farmers’ prosperity.”

Farmers’ prosperity, he said, should lead to expansion in market and growing demand for automobiles, electronic appliances and other industrial goods.

The minister said poverty and unemployment were the greatest challenge for the government which was being addressed. He said Nepra had decided to bring down electricity tariff which should help in alleviating some of the burden of the domestic consumers as well as the industrial and commercial consumers.

Earlier talking to reporters, Shaukat Aziz hinted at the possibility that Pakistan might not opt for importing wheat against $95 million GSM credit and might look elsewhere.

In reply to a question, the minister said the recently constituted National Finance Commission might come out with a consensus award before the expiry of the current fiscal year and next year’s budget might be prepared on new fiscal resources distribution arrangement.

Earlier, Arif Habib said the government was the biggest beneficiary from the revival and increasing capitalization of the stock market.