April 19, 2006	Wednesday	Rabi-ul-Awwal 20, 1427

NEW YORK, April 18: Pakistan’s economy is growing at a rapid pace and the government is trying to enlarge a politically moderate middle class to stem the tide of extremism, but it has one downside “double digit inflation”, says the Wall Street Journal in an article published on Monday.

The high inflation rate has eroded income gains of the last two years and checked the spread of wealth outside the big cities and a government plan to reduce poverty has had a little impact, the WSJ noted.

However, it says that Islamabad’s efforts to open up the state dominated corporate sector are making it relatively fast and easy for private investors to buy a piece of action. The country is moving the privatisation programme into high gear even as similar drives in India, China and Latin America have reversed, slowed or stalled, notes the WSJ.

Saying that the fast pace of privatisation has its critics as some worry the pace is too fast thereby preventing the government from adequately appraising company values and permitting private investors to buy national assets too cheaply.

However, Prime Minister Shaukat Aziz is quoted as saying that the privatisation process has been open and fair and has drawn top investment advisers.

Goldman Sachs and JP Morgan Chase have advised the government on sale of many assets.