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  • Jul 20th, 2008
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Prime Minister Syed Yousuf Raza Gilani on Saturday said that international companies have offered $4 billion investment in energy sector in Pakistan and vowed that every effort would be made to bring the country out of prevailing, economic, energy, law and order crises.

-- Prime Minister says long years of dictatorship have plunged the country into crises

-- According to him, there's a flour shortage, load-shedding, terrorism and extremism, restoration of judges, economic and, above all, the inflation and unemployment which have their roots in the past

-- Believes high inflation is the result of running the country by printing money and heavy borrowing from the State Bank of Pakistan

-- Asks traders, industrialists and investors to make maximum investment in Pakistan

-- Seeks people's support and co-operation by saying that reduced consumption of fuel and edible oil can save billions of dollars in foreign exchange, reduce trade deficit but also gradually reduce the external debt

-- Assures farmers that government will significantly increase the minimum wheat support price before sowing of the next crop

-- Gives small growers good news that government will pay premium for them against crop loans

-- Declares that govt is working towards increasing milk production to bring about a White Revolution

-- Claims international companies are willing to invest $4bn in power sector.

"There would be minimum load shedding by next year after the measures taken by the government to address the situation," he assured the nation in his first televised address and held the previous government responsible for the prevailing crises, urging the nation to trust the coalition government.

In order to attract investment for Thar coal, he said a conference would be held in Washington on July 29, which would be chaired by him. He said that 2.5 million-ton wheat would be imported to curtail wheat crisis.

Prime Minister stated that Pakistan is facing the crisis of flour shortage, load-shedding, terrorism and extremism, and above all the inflation and unemployment which have their roots in the past.

In this situation, he said there were two options for the government; either to surrender to these problems or face them. I have chosen the second option to face the challenge.

Gilani said these problems were because of two reasons, external factors included rising oil and food prices in the international market while on domestic front during the last eight years, the government neither realised the challenge nor did any future planning. Thus the country was plunged into these crises.

He said it unfortunate that whenever PPP government came into power, the country was facing enormous problems with grave threats to the federation. He repeated that dictatorship remained at the helm of affairs in Pakistan most of the period in its history and every dictator made efforts to prolong his rule at the cost of country.

Gilani stated that the government was committed to resolve public issues. About judges' issue, he said that soon nation would hear good news. "We will take out this country from all the crises. We will give the people confidence and fulfil their dreams," he said.

Prime Minister maintained that after Quaid-e-Azam, Qauid-e-Awam Zulfiqar Ali Bhutto gave a new consciousness to the people of the country and said whatever pledges former Chairperson PPP Benazir Bhutto made to the nation, he would try to fulfil them.

He said February 18 has given a new hope to the nation with various parties came united on unified agenda to bring the country out of prevailing crisis. He assured the nation that he would sacrifice his life for the country.

He said that abundance of automobiles and mobile phones were not the growth yardsticks but unfortunately the previous government rather than setting up new industries relied on imports and created a consumption based economy. Agriculture was totally ignored and heavy borrowing from the State Bank was major reason of inflation in the country.

Outlining efforts of the government to counter these problems, he said first I would like to urge upon business community to keep their capital in Pakistan and they would be assured protection." He said that the government is importing 2.5 million ton wheat to ensure adequate supplies, and give agriculture loans Rs 30 billion for farmers.

Gilani said that the heads of allied parties would meet on July 23, in Islamabad to formulate a comprehensive strategy to eradicate terrorism and extremism. He said the country's nuclear assets are in safe hand and no one would be allowed to take action inside Pakistan.

APP ADDS: Prime Minister Syed Yousuf Raza Gilani pledged to the nation on Saturday to render every sacrifice to meet the challenges facing Pakistan and urged people to support the government in its efforts to steer the country out of the crises.

In his first address to the nation, after taking oath three months ago, the Prime Minister said, long years of dictatorship have plunged the country into crises.

"We will take out this country from all the crises. We will give the people confidence, we will give the nation not just their dream but its fulfilment,' he said in his address presented live on television and radio.

Prime Minister Gilani gave an overview of the problems the government had inherited and various steps that have been taken to stem the economic down slide and provide immediate relief to the common man. Gilani said Pakistan was facing the crisis of flour shortage, load-shedding, terrorism and extremism, restoration of judges, economic downslide and, above all, the inflation and unemployment which had their roots in the past.

"This situation sapped people's confidence and killed their hope," he said and added in this situation the government had only two ways; either to surrender to these problems or face them up front. "Like my political predecessors, I have chosen the second path (to fight against these challenges)."

Prime Minister Gilani attributed these problems to external factors, like rising oil and food prices in the international market. Secondly, he said during the last eight years, neither the gravity of international challenges were realised nor any future planning was made that created multiple problems and plunged the country into crises.

He described inflation as the biggest challenge and part of a global crisis, saying Pakistan today is faced with an economic turmoil. "Abundance of automobiles and mobile phones are not a yard-stick of progress," he said and added that the previous government instead of setting up new industries preferred imports and made Pakistan a consumer economy.

He said agriculture was totally ignored and inflation the country faced today, was the result of running the country by printing money and heavy borrowing from the State Bank of Pakistan.

Outlining efforts of the government to counter these problems, the Prime Minister said the government was trying to overcome inflation while avoiding past mistakes. Instead of cosmetic presentation of the economic situation, the priority of the government is to improve the situation in real terms, he added.

He said industrial and agriculture production would be increased to counter inflation and reduce financial deficits. Hoarding and profiteering will be done away with, he added. Prime Minister Gilani asked the traders, industrialists and investors to make maximum investment in Pakistan. "I appeal to my business community to keep their capital in Pakistan. We assure them every protection."

He also appealed to the nation to reduce consumption of those items, which were costing the country hugely in terms of foreign exchange. The Prime Minister said that reduced consumption of fuel and edible oil could save billions of dollars in foreign exchange, which will not only reduce trade deficit but also gradually reduce the external debt.

Being an agriculturist, Prime Minister said he was fully aware of the problems of the farming community. He regretted that an agrarian country like Pakistan was facing the problem of food shortage. The Prime Minister underlined steps the government has taken to overcome the problems.

The Wheat Support Price has been increased to Rs 625 per 40 kg from Rs 475 and the government will significantly increase the minimum support price before sowing of new crop. The government is importing 2.5 million tonnes of wheat to ensure adequate supplies, he added.

Agriculture loans for farmers have been increased by Rs 30 billion and an amount of over Rs 20.50 billion has been allocated for the agriculture development programme. He said the government has already announced a new policy for import of agriculture equipment and cheap tractors. Sizeable subsidy is being given on fertiliser besides abolishing sales tax on it, he added.

The insurance scheme for crop loans has been approved and he announced that the government would pay the premium for small growers. The Prime Minister said water reservoirs would be constructed on priority basis, as development of agriculture sector was impossible without adequate water supplies.

Prime Minister informed that the government was giving incentives to some 10,000 dairy farmers to increase milk production to bring about a White Revolution in the country.

Pakistan was facing the acute power shortage, which, the Prime Minister attributed to the neglect of the sector in the past eight years, which created an imbalance in supply and demand. The Prime Minister recalled that the country faced similar load shedding problem during the second government of Shaheed Benazir Bhutto.

At that time, he said, the private power producers were given incentives, adding today a large portion of the total energy production is obtained from projects set up by these companies.

"Just think what would have been the situation if the government of Pakistan People's Party (PPP) had not started these projects 14 years back," he posed a question. The Prime Minister said the government has taken a series of measures in a short span of time, which would help overcome load shedding significantly by next year.

Gilani said reposing confidence in the government's policies, international companies have offered to make $ 4 billion investment in power sector and work on the proposals is being undertaken at fast track. The government has taken practical steps to utilise the huge reserves of coal in Thar and for this purpose Thar Coal Authority has been set up.

The Prime Minister said he would chair a roundtable conference attended by international financial institutions on July 29 in Washington for investment in the sector. Moreover, special attention has been focused on alternative sources of energy including wind, solar and atomic energy, Gilani said.

Under the programme to conserve energy, besides various other steps, supply of energy saver bulbs would be ensured and due to these steps the future needs of energy would be fulfilled, he said.

The Prime Minister pointed out that no country could attract investment, or make progress, if the lives of ordinary citizens are insecure. "When we took over, hundreds of lives were lost in numerous suicide attacks in 2007, affecting thousands of people," he added.

He recalled that chairperson of Pakistan People's Party (PPP) Benazir Bhutto also became the target of dreadful wave of terrorism. The personnel of law enforcement institutions were also being targeted, he added. The Prime Minister informed that an extraordinary meeting of the heads of allied parties would be held on July 23, in Islamabad to formulate a comprehensive strategy to end terrorism and extremism.

Prime Minister Gilani said Pakistan was fighting the war against terrorism in its own interest and added that the country for its geographical location can play a central role for economic progress and peace in the region.

"This role of Pakistan is being acknowledged all over the world." He said good relations with neighbouring countries were the major planks of the country's foreign policy. It was with this spirit that Pakistan has agreed to hold fifth round of composite dialogue to improve ties with India and resolve all disputes, he added.

Referring to his first speech in the National Assembly, the Prime Minister said that he had clearly stated that resolution of Kashmir issue in line with the aspirations of Kashmiri people is essential for durable peace and prosperity of south Asian region. He said Pakistan wanted friendly ties with the entire world and vowed that sovereignty of Pakistan will never be compromised.

Gilani made it clear that no foreign power will be allowed to take action on Pakistan soil and added that any decision or action within its boundary will be taken by the country itself. The Prime Minister said the government is preparing a comprehensive strategy to improve and reflect true image of Pakistani nation in the world, particularly in the west.

This "can tell the world that we are the victim of terrorism and will leave no stone unturned to counter the menace." The Prime Minister reaffirmed that by the grace of Allah Almighty, Pakistan's defence is strong and "we are responsible nuclear power and our (nuclear) assets are in safe hands."

The whole nation has full trust in its armed forces and the government will utilise all resources to fulfil country's defence needs. The Prime Minister also announced a number of measures to provide relief to the common people.

The Prime Minister said under Benazir Income Support Programme, targeted support of Rs 1,000 each will be provided to the poor families to help them overcome poverty and inflation. He said initially, 3.4 million families would benefit from the scheme, which would be expanded later. For this scheme, he added, special Benazir Cards will be issued and the scheme will be formally launched on August 14.

The Prime Minister said that another scheme has already been launched for free issuance of national identity cards, which would benefit some 25 million people. He said Utility Stores would be established at every Union Council level to provide basic commodities of life including flour, ghee and pulses at cheaper rates.

Mobile Utility Stores in remote areas have already been started, while 1600 new Utility Stores are being set up soon. The Prime Minister said 20 percent increase in salaries and pension of government employees has been made, while minimum wages of labourers have been enhanced from Rs 4600 to Rs 6000 per month.

Yousuf Raza Gilani said a revolving fund of Rs 2 billion has been created under the Prime Minister's Housing Scheme and he would soon inaugurate its pilot projects at the federal as well as provincial capitals. Government employees and rural areas would be given special importance in this scheme, he added.

The Prime Minister said under the Green Transport Scheme the government has decided to run 8000 CNG buses in ten big cities. The scheme will cost around Rs 40 billion and its investors were being given special incentives, he added.

He said the Lady Health Workers programme introduced by Shaheed Mohtarma Benazir Bhutto in 1994 was appreciated and welcomed at the local and international level.

The government will add another 20,000 lady health workers this year in the existing number of 100,000, the Prime Minister said and added the quota of lady health workers for Balochistan had been doubled. The Prime Minister said a mother, child health-care programme had been initiated at a cost of Rs 20 billion, under which 20,000 community midwives would be recruited this year.

He said for the first time a new programme would be introduced for diagnosing diseases, which would specially help in preventing hepatitis and polio diseases. Besides, the Prime Minister said, a special programme for treatment and control of Hepatitis had been initiated, which was being supervised by him. He also appealed for co-operation from the local and international institutions in this regard.

He said a new Rs 5 billion school-feeding programme has been initiated in rural areas to provide food to boy and girl students in the primary schools. The Prime Minister said quota for women in government jobs has been doubled, while the legislation is underway for the protection of women and their rights.

He said government was focusing to make operational the Chinese Economic Zone, especially created for Chinese investors in Lahore. The Prime Minister said the restrictions on trade and student unions had been lifted and in this respect legislation work had been initiated. The measures were afoot to restore the government servants forced out of jobs on political grounds, he added.

He said the government had regularised the services of contract employees from Grade 1 to 15. The Prime Minister said the government believed in equal rights for minorities and would ensure protection of their religious sites as well as freedom of worship.

He said a bill had been tabled in the National Assembly for amendment in the PEMRA Ordinance to ensure freedom of media. The legislation work on the Freedom of Information Bill 2008 had been initiated, he added. The Prime Minister said a Journalist Victim Fund had been created to provide protection to journalists. Consultation process on Wage Board Award had started to support the working journalists, he added.

Copyright Business Recorder, 2008


Copyright Associated Press of Pakistan, 2008


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