ISLAMABAD, June 14: The government has no plan to devalue Pakistani currency and is finalising a "new strategy" to enhance exports, says Prime Minister's Adviser on Finance Dr Salman Shah.
"Devaluation is not the solution and the solution lies in creating competitiveness for which a new strategy is being finalised by the ministries of finance and commerce," he told Dawn here on Thursday.
He said Chinese and Indian currencies were appreciating due to which Pakistani currency had stabilised and it was decided "not" to devalue Pak rupee as was being proposed by some quarters.
"This is good opportunity to have a big jump in our exports during the next financial year," he said admitting that without improving the quality of Pakistani products exports will not pick up.
Giving the details about the new strategy, Dr Shah said that while Pakistani products would be made competitive, particularly through value addition, new export markets will be explored.
The job will be done by ensuring improved performance by Pakistani missions abroad and by sending trade delegations to important countries. "We are reviewing the whole issue of falling exports," he added.
Responding to a question, Dr Shah said that around Rs70 billion foreign funding had been arranged from the World Bank, Asian Development Bank (ADB) and couple of other sources to partly finance Rs1.8 trillion federal budget for 2007-08.
In reply to a question, the prime minister's adviser on finance said that one of the major challenges or the issues before the government was to ensure food security, especially for the middle and low middle income groups.
He said the supply side needed to be improved through various means, including opening of 5,000 new utility stores in the country. There will be at least one such store in each Tehsil to cater to the requirements of the people in terms of providing them subsidised food items.
Food subsidy, he pointed out, was meant to provide inexpensive essential food items to the people.
Dr Shah also said that sustainability of growth was another important issue, which will attract a lot of attention of the government during the next financial year.
To a question, he said that power shortage was another important issue, which was being addressed by the government with a view to removing the on-going load-shedding. In this regard, he referred to the proposed meeting at Karachi to be chaired by Prime Minister Shaukat Aziz on June 19.