He stated this, while addressing the meeting held here to review economic growth of the country during the first half of the current fiscal year and set target for the second term.
The president noted with satisfaction that after a gap of several years the employment rate was going up due to the government's effective policy of generating more jobs for unemployed through economic activities.
The president was informed that despite October 8 earthquake, all the economic indicators were showing positive trend to help the government in achieving targets for 2005-06.
Prime Minister Shaukat Aziz, Commerce Minister Humayun Akhtar, Industries and Production Minister Jehangir Tareen, Adviser to the Prime Minister on Finance Dr Salman Shah, Minister of State for Finance Omer Ayub Khan, Minister of State for Economic Affairs Hina Rabbani Khar, Planning Commission Deputy Chairman Dr Akram Shaikh and State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar attended the meeting.
An official told Business Recorder that the meeting reviewed the steps taken by the government for economic growth and implementation of long-term vision for several key areas, including power sector, land management and setting up of land bank to formulate data of the land available with the provincial governments and public sector departments at a single forum and offer to the new investors for setting up industries in the country.
The meeting was informed that the land bank system would be in place before the end of the current fiscal year.
The SBP governor briefed the meeting on the monetary policy. She said the SBP would continue to implement tight monetary policy in future. She said that the banks have been asked to strictly follow the lending directives of the central bank.
Adviser to the Prime Minister on Finance Dr Salman Shah gave a detailed presentation on the economic outlook. He said economic growth during the first quarter of the current fiscal year was up to the mark and it would help the government in achieving the growth rate of 7 percent for 2005-06.
He also said that despite surge in the prices of certain commodities, inflation was moving down. He maintained that inflation target of 8 percent for the current fiscal was well within reach.
Planning Commission Deputy Chairman Dr Akram Shaikh briefed the meeting about the major projects undertaken by the government and said that pace of all the development projects was satisfactory. He said that the government has prioritised development projects to ensure adequate funds for their timely completion. He said that the Public Sector Development Programme (PSDP) spending for 2005-06 would set a new record.