ISLAMABAD, May 29: Adviser to Prime Minister on Finance Dr Salman Shah announced here on Monday that the Monopoly Control Authority (MCA) was being transformed into a ‘Competition Commission’ to be effective from the fiscal year 2006-07.

“The Competition Commission is aimed at promoting competition in various sectors of the economy and will have legal authority and teeth so that when it acts, it makes a difference,” the adviser said.

Dr Shah told reporters at a pre-budget briefing that a ‘Pakistan Statistical Authority’ will also be established by the end of next month to keep accurate data about the country’s economy.

Responding to a question, he said large scale manufacturing growth was expected to be nine per cent in the fiscal year 2005-06. “Overall investment-to-GDP ratio has gone up to 20 per cent which is a very good indicator,” he added.

He said foreign direct investment (FDI), privatisation and bank credit trends indicated that investment in the economy was strong and broad based, adding that the balance of payment was surplus in spite of record imports. He said foreign exchange reserves stood at $13 billion and hoped to close the year with a healthy situation.

The adviser pointed out that the new budget would also start putting Pakistan on a road that the potential of agriculture, industry and services sectors could be achieved through reduction in cost of business, rationalization of taxes and duties and improvement of productivity through focussed programmes.

“In the new budget, we will have to maintain a fiscal discipline and don’t go back with the begging bowl, raise our resources in the optimal manner and the development programmes and expenditures are met through our own resources,” he added.

Minister of State for Finance Umar Ayub Khan said emphasis in the next budget would be on the Khushhal Pakistan Programme and Khushhal Pakistan Fund, adding that new projects at micro and village levels like farm-to-market roads, rural markets and the village electrification programme would be launched.

The state minister said 13,000 villages were being electrified across Pakistan. He assured that additional resources would be provided for safe drinking water supply to everyone in the new budget.

Mr Omar said the government had realised the development needs of the provinces and local governments for which adequate funds would be made available in the budget for 2006-07.