LAHORE, Oct 19: Federal Industries, Production and Special Initiatives Minister Jahangir Khan Tareen on Thursday expressed the hope that reduction in the inflation rate would help reduce interest rate as the cost of credit was one of the major factors that impacted upon the industrial growth.

Talking to reporters during a visit to the under-construction Sundar Industrial Estate on Raiwind Road, he said the development of infrastructure always helped bring down the cost of doing business and attracted foreign investment as was evident from the example of the East Asian countries like Malaysia, Thailand and China.

Hence, he added, the Pakistan government was also focusing on the development of new industrial estate and other industrial infrastructure all over the country.

He said the government was developing new and upgrading existing industrial estates across the country to help escalate economic activity. "These industrial estates not only contribute to the economic growth, but also help improve the quality of life of the people and eliminate poverty through creation of new jobs," he said while talking to reporters.

Tareen said that the National Industrial Estates Development and Management Company (NIEDMC) had been formed to set up industrial estates under the public-private partnership model of development.

He said that the NIEDMC had started the development of an industrial estate for SMEs in Korangi in Karachi. Another would be developed over 1,500 acres of land adjacent to the Pakistan Steel Mills in Karachi.