ISLAMABAD, Oct 29: Prime Minister Shaukat Aziz has expressed the hope that the country will achieve its growth targets. He was talking to the president of US Import and Export Bank, Mr James Lambright, who called on him in his office here on Saturday. US ambassador in Pakistan Ryan C Crocker was also present in the meeting.
The prime minister said that he was optimistic that despite the challenges posed by the devastation caused by the earthquake Pakistan would achieve the growth targets set for the financial year 2005-06.
Mr Aziz appreciated the humanitarian and logistic support and engineering and medical assistance provided by US in the earthquake zone. He also commended NATO for sending its engineers, doctors and other support in these areas.
The prime minister welcomed the initiative taken by US President George W. Bush to involve the corporate sector to spearhead efforts at raising private sector aid for victims of the earthquake.
He said that due to the colossal tragedy which had struck Pakistan, the task of the government was not just rebuilding. It also involved re-engineering and redesigning the entire infrastructure in most cases.
However, the government was fully committed to achieving its growth targets and sustaining the pace of economic development.
The prime minister said the strength of the economy was based on broad-based, strong and wholesome fundamental structural reforms. The micro-economic indicators were moving in the right direction. The government had now institutionalized the reforms.
The fiscal responsibility law introduced by the government “has contributed to better economic performance”, he added.
Mr Aziz said the last five years had witnessed a transition from commodity supply to value addition. The government was now moving towards production of value-added goods. Value-addition in industries like textiles “is rapidly increasing”.
He said positive developments were taking place in the engineering industry step by step. He quoted the example of Honda “which is producing many motorcycle models in Pakistan for local consumption and is now planning to start exports from here”.
The prime minister asked the president of Exim Bank to look into the possibility of extending its operations in Pakistan, particularly with PIA and in the power sector.
Mr James Lambright commended the economic progress achieved by Pakistan in the last five years. He said although Pakistan was facing a mammoth challenge of relief, rescue, rehabilitation and reconstruction of earthquake affected areas, Pakistan nonetheless “has bright economic prospects of growth and development”.
“I am optimistic about the economic prospects of Pakistan as its economy is based on strong economic fundamentals,” said Mr Lambright.
He expressed grief at the widespread devastation caused by the earthquake and loss of thousands of precious lives. The Exim Bank team comprising Mr Lambright, its president, Talat Rehman, Business Development Officer and Andrew Quinn, Economic Counsellor of the US Embassy, also called on Dr Salman Shah, Adviser to Prime Minister on Finance, Revenue, Economic Affairs and Statistics.
The bank chief stated that they were optimistic that Pakistan would overcome the disaster and its trade and economy would continue to move in the right direction.
He said the US Bank was maintaining a portfolio of about one billion dollar in Pakistan and they were in the process of drawing up modalities to finance viable private sector projects in infrastructure, power, gas and railways, etc., without sovereign guarantee.
He also remarked that the bank helped PIA buy a new fleet of aircraft and the improvement in the efficiency of PIA was now visible.
Dr Salman Shah said that Pakistan was grateful to Exim Bank for its support. The international community, multilateral agencies, international donors and development partners were helping Pakistan in the recovery of earthquake victims and in restoring infrastructure and economic activities in the quake zone.
“We will use all our domestic resources and international support. The reconstruction phase may spread over five years and each year we anticipate a minimum of one billion dollar requirement for reconstruction and rehabilitation,” he said.
