June 24, 2007	Sunday	Jamadi-us-Sani 08, 1428

ISLAMABAD, June 23: The government plans to offer new concessions to local and foreign investors to help them invest in the proposed “government cities and textile cities” during the next financial year, says prime minister's adviser on finance Dr Salman Shah.

“Various kinds of new facilities are currently being considered which are expected to be offered to investors in these proposed cities,” he told Dawn here on Saturday.

He said numerous facilities and concessions, such as loaning on low interest rates to spinners and some other sectors were already being offered by banks at the behest of the government.

“We will make our industry and investors competitive by providing them necessary facilities, including reduced rates for power and gas etc.,” he said, adding gas was already being provided on reduced tariff.

The objective, he said, was to make Pakistani products more competitive from Indian and Chinese products during the next financial year.

The annul plan for 2007-08 sought to lower barriers to development, especially of Small and Medium Enterprises (SMEs) and developing a modern financial sector with a view to provide a wide range of financial services and removing irritants and impediments to private sector growth.

It also assured to strengthen the country's physical and social infrastructure, consistency and continuity of economic policies.

All these measures, Dr Shah believed, will considerably improve investment climate and reduce the cost of doing business to help it contribute to enhancing the competitiveness of the private sector.

Asked to comment on agitation by the textile sector on account of higher cost of doing business in Pakistan, the prime minister's adviser on finance said a number of issues of this sector have already been resolved while the remaining would be considered during the next financial year.

The private sector plays an important role in driving growth and creating job opportunities. The government recognises the importance of improving competitiveness as an instrument of its economic growth strategy.

The economy has responded well to structural reforms carried out in the last seven years and has emerged as one of the stronger growing economies of Asia.

The government is following a policy of intensifying liberalisation, deregulation, privatisation, with a view to transforming Pakistan's economy into a truly private sector-led market economy which is highly competitive, the Annul Plan said.

This would emphasise high growth, creating gainful employment, generating wealth and most importantly, reducing poverty.

The government intends to enhance the special Economic Zones (SEZs) in attracting investment to achieve its goal of generating employment and further augmenting industrialisation and modernisation within a cohesive strategic plan.

The SEZs and associated industrial parks and clusters will play an important role in increasing competitiveness.

The annul plan also believed that a strong private sector development strategy will, therefore, be a key element in enhancing competitiveness of the private sector.

The PSD will create an enabling environment that will allow the private sector to focus on productivity, innovation and growth, responding to opportunities in the national and global markets.