ISLAMABAD, Sept 17: The ministry of finance has been asked to formulate 'specific proposals' on how the benefits of an economic upturn could trickle down to the common man.

Informed sources told Dawn here on Friday that Prime Minister Shaukat Aziz had directed his Adviser on Finance Dr Salman Shah to prepare proposals within one month to improve the lot of common man who was still facing hardships despite a turnaround in the economy.

The ministry of finance would now prepare a new policy in the light of the directive by associating both the public and private sectors, economic experts and professionals.

The objective, the sources said, was to facilitate the private sector so that new industries could be set up across Pakistan to create new job opportunities.

At the same time, the ministry of finance has been asked to propose measures for extending relief to the poorer section of society.

The adviser on finance held a detailed meeting this week with the leaders of business community and informed them about a number of new initiatives likely to be taken shortly.

"While the government concedes that there has been no trickle-down effect of an improved economy to the common man, it is also being admitted that various irritants faced by the private sector could not be removed to help establish new industries," said a participant of the meeting.

He said that cost of doing business in Pakistan continued to be high, especially due to excessive power and gas tariffs.

"Dr Salman Shah assured the meeting that new efforts would be made to tackle the genuine problems of the private sector," he said.

However, he added that there was no likelihood of any policy measure being implemented unless the uniform issue of President Gen Pervez Musharraf was settled.

"The government appears to be more busy handling political issues, mainly the question of uniform, rather than addressing the problems of the private sector or the common man," he believed.

The sources said that the adviser on finance assured business leaders that since he himself belonged to the private sector, all efforts would be made to 'greatly facilitate' people of this sector.

One of the major challenges, the adviser said, was to increase Foreign Direct Investment (FDI) which totalled $950 million during 2003-04.

Dr Shah, the sources said, was not satisfied with the FDI target of $1bn set for the current financial year and had directed officials to adequately enhance it and then achieve it by extending all possible concessions and incentives to investors.

The sources said that although overall investment in the country had increased from 16.7 per cent of GDP to 18.1 per cent of GDP - the highest in last eight years - the prime minister wanted to stretch it to 20 per cent within the next two years.