LAHORE, Sept 6: Expressing his firm belief in free trade policies, Finance Minister Shaukat Aziz promised businessmen that the WTO regulations and rules would, however, not be let hinder the progress of local industry.

Inaugurating the motorcycle engine plant set up by Atlas Honda Ltd at a cost of Rs1 billion here on Friday, the minister said it is imperative to encourage and protect the indigenous industry in order to make economic progress.

He claimed that the government had laid a solid foundation for a competitive economy and considerably improved the macroeconomic fundamentals. However, he said, a lot more needed to be done. “We should face the challenges boldly and upfront. We have to compete (with the rest of the nations) on our comparative advantages that we have many. Rebuilding an economy is like sowing a seed. You do not get the tree overnight. We have sown the seed, it is still a sapling. Water it and it will grow into a tree and give a healthy environment to us all.”

He said the economic reforms agenda of the government revolved around the faith that business was exclusive domain of the private sector and that the government must keep itself away from it. “We have created a lot of space for the private sector and don’t want to reoccupy it. The government agencies are being strengthened to make policies and to regulate the industry. The government should intervene only to create an enabling environment for the business and protect the consumers’ interests.”

Referring to the new engine plant, the minister said, “it was a defining moment for the country’s engineering sector and it would leave a salutary effect on the whole sector”.

The government is trying to promote the engineering sector and the President has approved the Engineering Vision to protect the industry from unfair competition, he said.

Earlier, Atlas Honda’s Saquib Sherazi said the company had for the first time in 40 years sold 100,000 motorcycles. He added the automobile industry had grown tremendously because of favourable, consistent policies of the present government. He said the market of local motorcycles was expected to further increase this year.

Group chairman Yousuf H. Sherazi called upon the government to curb unfair competition to the organized sector from “brief case” assemblers.

Earlier, the minister inaugurated Ramay Textile Mill which has been revived by its new management after having purchased it from the Corporate & Industrial Restructuring Corporation.

He expressed his satisfaction over the functioning of the CIRC that has sold 60 sick units so far in two years.

He said the economy had improved considerably during the last three years and the textile industry had imported machinery worth $1 billion in the last two-and-a-half years.