LAHORE, Sept 6: Federal Finance Minister Shaukat Aziz has said the Pakistan would request the US during President Pervez Musharraf visit to write off $1 billion debt out of a total of $3 billion besides allowing greater market access for its quality products.

Addressing a meeting at the Lahore Chamber of Commerce and Industry on Friday, he said that he would accompany the delegation led by President General Pervez Musharraf to the US.

Aziz said the European Union has already given market access to Pakistan’s garments industry, which would surely have a healthy impact on exports.

He said Pakistan’s foreign exchange reserves had increased to over $7.5 billion and would touch the figure of $8 billion within a couple of weeks.

He said the reserves had strengthened Pakistan’s position in the world and now it was no more vulnerable to any external pressure. He said Pakistan’s ratings in terms of foreign returns had also increased to B+ (B plus), which is higher than those of the neighbouring countries. He said Pakistan had now acquired greater credibility and was being taken as a serious economic manager.

Had country’s reserves remained at the level where the government took over, Aziz said, the prices of almost every commodity would have increased by 20 per cent to 25 per cent.

Aziz said country’s exports were on the rise as it recorded 16 per cent to 17 per cent increase in exports during the last two months as compared to the corresponding period last year. Some 60 per cent increase had been recorded in the textile industry only. He said Pakistan’s textile industry had brought in new machinery worth $1 billion.

He said investment in the oil and gas sector was picking up and new fields were being explored to bring gas production on the main stream. He said the government had discouraged previous policies, which were creating hindrances in the development of this sector.

Aziz said country’s industrial production average increase per year has gone up to 6.5 per cent during the last three years as compared to around 3.9 per cent during 1990-1999. He said the revenue collection had also been increased to Rs400 billion during this government’s tenure and was bound to increase.

Similarly, he said the fiscal deficit of the GDP has also reduced from seven per cent to five per cent. He said the domestic debt has also been decreased by over 2.5 per cent.

Aziz said the debt servicing as a percentage of revenue had come down to 47 per cent as compared to 63.5 per cent in 1998-99. He said the government was trying hard to bring it down to 30 per cent. He said country’s remittances had also been doubled.

He said the government is also importing containers’ x-ray machines to curb the foul play in bringing mix containers. “Now the government will be able to scan the whole container to tally the declared goods.”

Answering a question, he said the exporters should get dollar loans from banks to eliminate the currency risk besides bringing down the cost of borrowing.

$ discounting schemes: The exporters should take benefit of the dollar discounting schemes of banks for avoiding losses caused by the changes in the dollar-rupee parity.

This was stated by finance minister Shaukat Aziz during his visit to the international carpet exhibition on Friday evening.

Responding to the complaints of the carpet exporters that the downward slide of the greenback had caused them huge losses, he said the central bank had intervened to stop the dip in the dollar value to facilitate the exporters. Had the central bank not intervened the exchange parity would have come down to Rs55 a dollar.

On the demand of restoration of duty drawbacks for the carpet exporters, he said he would speak to the commerce minister on this issue and come back to the exporters in two weeks.