ISLAMABAD, Jan 2: The government has decided to set up a high-powered “deregulation commission” to thoroughly review and remove those existing laws that are hampering new business activities and hurting the interests of the small and medium enterprises.

“This new proposed commission is so important that it will work as the cabinet committee on de-regulation to ensure increased business activities by suggesting scrapping of undesirable laws and regulations,” said Minister for Finance Shaukat Aziz.

Talking to Dawn here on Wednesday, he said that as soon as President Pervez Musharraf returns from SAARC Summit, he would approve the setting up of what he termed “much needed” deregulation commission.

Aziz pointed out that people from the private sector would also be associated with the commission to help set up new industries in the country.

He said that a number of laws relating to Wapda, labour departments, food and agriculture departments and social security offices will have to be discarded as they were not helping to encourage private and foreign investment.

“The private sector people specially relating to small and medium enterprises will be encouraged to make new investment for which many existing defective laws and regulations will be done away with,” the finance minister said.

He regretted that still there existed many departments at the federal, provincial and districts level which sought ‘money’ from the investors to allow them to set up their new businesses.

“How could there be any investment when investors are forced to pay bribe for getting water, electricity, telephones, etc.,” he said adding that a decision has been taken at a higher level that those departments which would create problems for businessmen, will be taken to task.

Responding to a question he said that the government would limit its role to a facilitator by providing technical and financial assistance to the private sector.

“There will be less and less government’s role and that is why a number of government corporations are being reduced and in some case their merger is being ensured,” he said adding that the role of the private sector was being enlarged to have new investment in the country.

To another question, he said that Small and Medium Enterprise (SME) Bank will extend loans on merit and that there will be complete transparency in all its operations. He assured that there will be no interference by the government in the affairs of the SME Bank so that it could undertake the job of offering loans to deserving people for promoting overall growth.