Associated Press of Pakistan (APP) Report
on Sept 11, 2002
Pakistan economy moving towards stability:
Musharraf
By Rao Khalid, APP Special
Correspondent
CHICAGO,
Sept. 11,(APP):President General Pervez Musharraf said Tuesday night
Pakistan's economy that had gone into a nose-dive following years
of mismanagement and unbridled corruption was now moving towards
stability and self reliance.
"Principal
macro economic indicators show the economy on the rise and moving
towards stability and self reliance," he said while giving
his keynote address before the Chicago Council on Foreign Relations.
President
Musharraf who is due to address the UN General Assembly on Thursday
outlined achievements of his government in various sectors of the
economy during the past three years.
He said the fiscal deficit has been reduced to 4.9% from the previous
7%, through stringent budgetary controls. Inflation is down to 3%
from the last year figure of 4.7%. It had climbed to 10-13% for
most of the 90s, he added.
Country's
exports, he said, had beaten all previous records and foreign exchange
reserves today were double of what they had ever been in the history
of Pakistan and the direct foreign investment had registered improvement.
Similarly, the President said, foreign and domestic debts had been
reduced for the first time in the country's history and the stock
market in Pakistan had been amongst the star performers in the region.
During the last 18 months, the Karachi stock market has been the
best performing
market among the 14 leading markets in Asia, registering a return
of 41%.
He
briefly touched down the economic challenges that faced the country
since October 1999, underlined the policies that had been crafted
and the economic opportunities that were available to his government.
Economic revival, he said, was the core priority of his government
from the very beginning as it had gone into a nose-dive following
years of "mismanagement and unbridled corruption".
His
Government, he said, was determined to re-establish good governance
and the rule of law to restore confidence of its people, the foreign
investors and country's development partners in the credibility
of the government and its institutions.
"We formulated a broad-based, private sector-led short term
and medium term programme to place the economy on the path of reform
and growth."
President Musharraf recalled that when his government took over
in 1999, the country was saddled with a huge debt burden. Foreign
debt had reached US $ 38 billion through profiligate borrowing with
no income generating projects to show for it.
"We
have been able to re-profile this debt with the support and understanding
of the International Financial Institutions (IFIs) and friendly
governments," he added.
Pakistan
today, he said, now have the resources for projects essential for
economic development and the fiscal space to restructure the economy.
Large public sector development projects have been initiated, notably
in the water management, infrastructure and the social sector. These
projects will be completed in next 4-5 years, the President said.
He also referred to the fact that for the first time arrangements
with
the IMF were completed successfully and on schedule. A three-year
Poverty Reduction and Growth Facility has been signed and programmes
are proceeding apace, he added.
The
President noted with pleasure that the USA has emerged as Pakistan's
largest investment partner. "Pakistan today is the most de-regulated
economy in the region and has an impressive success rate for returns
on investments. All sectors are open to foreign investment."
Explaining country's investment policies, the President said that
foreign investors are allowed to hold 100% ownership and there are
no restrictions on remittance of profits, dividends and repatriation
of capital.
"Our
investment policy provides a level playing field to foreign and
domestic investors."
Referring to the growing Pak-US economic ties, the President said
that besides the US AID, OPIC, Exim Bank and TDA have resumed operations
in Pakistan.
The
Governments of Pakistan and the US have also established Bilateral
Economic Forums and Trade and Investment Groups, he pointed out,
saying, these forums provide further opportunity to the private
sectors to forge long-time and mutually beneficial economic relationship.
He
told the prospective US investors that Pakistan provides attractive
opportunities for investment and has a well-qualified English speaking
work-force to multiply dividends on such investment specially in
the IT sector. The President assured them of Government's commitment
for the security of investment and personnel in Pakistan. "I
believe that an economically strong
Pakistan would be a more effective partner in fighting terrorism."
Pakistan
and the US , he said, enjoy a tradition of close, cordial and cooperative
relations. "These relations stand renewed and re-invigorated
in the post 9/11 environment," he added.
The President stated that both Pakistan and the United States were
committed to an enduring and mutually beneficial partnership. "I
believe that Pakistan-US relations serve the cause of peace and
stability in our region."
President Musharraf said he knew that scare scenarios of nuclear
holocaust in South Asia have been painted- "it goes without
saying that nuclear war should be unthinkable. Nuclear weapons must
not be weapons of use. They are primarily designed to deter aggression."
He
reminded the august gathering that Pakistan was not the first to
conduct nuclear explosions, and we shall not be the first to resume
testing. Instead, he said Pakistan has had to
react and respond in order to restore equillibrium in the region.
"We have offered to India a triad of peace. Resolution of disputes,
a no war pact, mutual reduction of forces and denuclearization and
economic cooperation," he said adding, unfortunately, India
has not responded positively to our proposals and seems intent,
instead, on building a triad of
nuclear weapon systems."
He
assured that Pakistan has established "fail-safe safeguards
and custodial controls" on our nuclear assets. "We have
an impeccable record," he asserted, adding, in this context,
Pakistan and the US have remained engaged in a high-level dialogue
on security issues, particularly regarding restraints in South Asia.
He said he would like to put on record here that India is involved
in a huge conventional arms build-up. "Their defence budget
in the last three years has gone up by an unprecedented 50%. They
will soon be the biggest arms purchasers in the world.
Their annual import bill of hi-tech weapons including aircraft,
surveillance systems, electronic warfare equipment, anti missile
systems, submarines etc stands at US dollar 4.5 billion."
"The visible tilt in conventional arms balance between India
and Pakistan has dangerous portents and must be checked. While India
claims it has a wider defence perspective the fact remains that
all its conflict scenarios and contingency defence planning involve
Pakistan. India's forces have always been concentrated close to
its border with Pakistan."
Peace and stability, he said is essential for South Asia. "For
fifty-four long years, Pakistan and India have remained mired in
strife which has denied our people, over one-fifth of humanity,
a decent quality of life. This must end. We must normalize relations.
We must live in harmony, not acrimony. We must facilitate creation
of synergies amongst our people and our nations. We msut look for
a South Asia of friendship and amity, cooperation and collaboration.
We must forge economic and trade partnerships which create propsperity
and distribute rewards evenly. We believe in this future. We are
firmly committed to this future," he assered.
The President said a peaceful and stable Afghanistan engaged in
national reconstruction and reintegrated with the world is another
imperative. He said Pakistan supports the Bonn Agreement. "We
support and fully back President Karzai and his Administration.
Pakistan has offered full cooperation by opening up its markets
to Afghanistan. We have earmarked US dollar 100 million for reconstruction
purposes over a period of five years of which US dollar 18 million
has already been disbursed."
He urged the international community to start implementing the US
dollar 4.5 billion Tokyo Reconstruction Plan without further delay.
The key to bringing normacly to Afghanistan, he said lies in extending
a truly multi-ethnic political writ throughout Afghanistan togehter
with a strictly multi ethnic national Police and Army raised, trained
and based in the 7 to 8 power centres in the country. The ISAF and
US forces have major role to play towards achieving this end.
He said Afghansitan is the link to Central Asia. The restoration
of this link could create a whole new matrix of market forces, including
trade, tansport and communications, utilization of oil and gas reserves.
Economic synergy among the ECO countries could foster a huge zone
of peace, partnership and prosperity.
About terrorism, Gen. Musharraf said Pakistan is against terrorism
in all its forms and manifestations, wherever it occurs. We are
part of the international coalition in the fight
against terrorism. Our role and record speak for themselves. A number
of Pakistanis lost their lives in the gruesome attack last year
at the WTC. Our soldiers and policemen in Pakistan have
given their lives in the fight against terrorism and terrorists.
He said terrorism in Pakistan flows from: --Two decades of internecine
conflict in Afghanistan which produced the Al-Qaida within itself.
The military action in Afghanistan now, has dispersed the Al-Qaida
with overflows into Pakistan and other regional countries. --Our
own internal sectarian intolerance and extremism fanned by some
fringe extremist religious organizations.
Gen. Musharraf said the recent terrorist attacks agaisnt the diplomatic
community and some Christian organizations is perhaps a sinister
combination of these elements abetted also by an
Intelligence Organization in a neighbouring country.
President Musharraf said he had taken unprecedented actions and
wide ranging strategic decisions to curb terrorism, extremism and
religious intolerance in our society. "Let me proudly say that
our actions are bearing fruit," he said, adding:
--With the cooperation of the tribes in the western border areas
our Army and CAF are combing the entire belt to cleanse it of any
foreign element. This has met success.
--A number of gangs have been busted and top leaders of domestic
terrorist/extremist organizations apprehended. This, is due to a
vastly improved performance of our law enforcement agencies. He,
however, said that our actions have not been without cost. "We
are being targeted for the decisions taken by us to combat extremism.
However, we are resolute." "I shall not allow a fringe
minority to hold us to ransom. We need your support and understanding
in accomplishing this mission, specially so, when we see sections
of the western media casting unfair aspersions on us that we are
'back tracking' or 'going slow.' Such comments/views are most discouraging
because they are anything but the truth."
He
also dwelt at length on the economic challenges and achievements
during the past three years. On Pak-US relations, Gen. Musahrraf
said both the countries enjoy a tradition of close, cordial and
cooperative relations. These relations stand renewed and re-invigorated
in the post 9/11 environment. Both sides are committed to an enduring
and mutually beneficial partnership, he said concluding: "I
believe that Pakistan-US relations serve the cause of peace and
stability in our region."
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