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  • May 16th, 2004
  • Comments Off on Reforms put economy on right track: Shaukat
Trade liberalisation, energy sector deregulation, privatisation of public enterprises, banking sector restructuring and tax reforms benefited country's economy to get on right track.

These views were expressed by Finance Minister Shaukat Aziz in an exclusive interview with "Emerging Market", a reputed magazine in South Asia.

These benefits complement the government's commitment to a wide-ranging reform agenda that, according to Shaukat, feature "the most broad-based reforms of almost any developing country."

Partly as a result of sound management and growing domestic confidence, GDP growth hit 5.6 percent, the fastest rise in over a decade, and the Minister expected it to head towards 8 percent this year, the magazine said.

The government is now embarking on the "second phase" of reforms, which include pension reform, governance reform and deeper capital markets reform, the magazine added.

"Reform is a process; it's not a one short event, It's permanent and it goes across the board," said Shaukat.

The thing is that our reform programme is a live wire. It is broad based; it is very deep and its implementation really requires institutional strength", he said.

"Pakistan's greatest challenge is its image problem," he said and added, "But when people come here they realise that the reality is quite different from the negative coverage that the region constantly gets."

The finance minister believes, "The Pakistani economy will withstand any shock."

He said the US has been a long-standing ally of Pakistan. "We obviously look to the US for financial assistance, but it is one of many donors. They're also a potential source of investment."

But investors also take comfort from another fact: the recent attempts at rapprochement between Pakistan and India. Bilateral relations between the two countries have improved in recent months.

What is an ideal picture of economic co-operation between the two countries in the coming years? It's too early to say," said Shaukat. "It all depends on how well the talks progress. But both countries have a considerable will to move ahead and have normal relations," he added.

Copyright Associated Press of Pakistan, 2004


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