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CE asks Egyptians

to join

Pakistan's

development process

CAIRO: Chief Executive General Pervez Musharraf, while pledging an encouraging climate for investment in Pakistan, invited the Egyptian entrepreneurs to take part in his government's development efforts and enhance the economic cooperation between the two countries.

"A number of attractive investment incentives have been introduced while others are in the pipeline. I invite you to participate in our development efforts. These include infrastructure development as well as joint ventures in large, medium and small enterprises," he said while addressing Egyptian businessmen and members of International Economic Forum at a dinner here. Pakistani Ambassador Anwar Kamal was present on the occasion.

Foreign Minister Abdul Sattar, Commerce Minister Abdul Razak Dawood, Chairman Privatisation Commission, Altaf Saleem, Egyptian Foreign Minister Amr Mussa, Egyptian Ambassador in Islamabad, Dr. Mahmoud Said, and prominent Egyptian businessmen attended the dinner.

He apprised the Egyptian businessmen of his government's economic policy. "He said, Pakistan is trying to keep pace with international trends. Our growth strategy is based on privatisation, deregulation and trade liberalisation. Our privatisation process is on track. Public enterprises in banking, finance, energy, transport and communications have been or will be offered for disinvestment."

Musharraf said good governance and strict economic management are on top of his governnment's priorities.

He said his government is focusing on four areas including agriculture sector, small and medium enterprises, telecommunication and information technology and oil and gas in the energy sector.

He told the Egyptian businessmen that his government's policies have yielded positive results.

Pakistan, he said, "provides an ideal opportunity for the location of new production units, new investments and the prepositioning of supplies for market access to the region."

The Chief Executive said that in Pakistan all economic enterprise is market-oriented. His government is focusing on economic revival in Pakistan. "In economic revival lies the salvation of Pakistan. We will encourage investors in Pakistan and we have to bring about stability in the region.

He said the two sides have signed an agreement on the mutual protection of investments and two memoranduams of understanding on promoting bilateral cooperation.

He expressed great appreciation for the progress Egypt has made.

Pak-Egyptian ties "are reinforced by affinities of culture, faith and shared perception. It is my belief that an important task before us is to strengthen economic and commercial relations. The possibilities are vast and you can play a key role in realising them."

General Musharraf fully supported the idea forwarded by Chairman of Egypt's International Economic Forum, Shafik Gabar, that a small Working Group for Pakistan be established in Egypt for exchange of information.

"I fully support the idea of a 'Working Group' to interact for mutual cooperation through identification of areas of collaboration. We will do our best and interact with you wholeheartedly," he added.

He said, the two countries can play a role in projecting the true image of Islam as a religion of dynamism and tolerance.

Musharraf also referred to the challenges offered by globalisation to the developing countries and said that need for cooperation between the two countries is all the more compelling to face these difficulties.

Gen. Musharraf said on Monday, that Pakistan's growth strategy was based on privatisation, deregulation and trade liberalisation.

He said: "The free market economy is leading the way to progress. Governments have to take the back seat. Their role is that of facilitator. We in Pakistan are trying to keep pace with international trends.

Pakistan is now in the process of reducing the budget deficit through financial discipline which includes broadening the tax net, right-sizing government departments, devastically curtailing expenditure and restructuring the economy.

"The initial results have been encouraging. Our stock market index has risen substantially and encouraging investor confidence. Our exports are also on the increase," he said.

Poverty alleviation and its eventual eradication, he said, should be a global concern. However, only lip service is being paid to this need. An overwhelming majority of the countries of the world are beset by poverty.

Whether in Africa, Asia or in any other developing region of the world, the story is the same Ñ they provide cheap raw materials in exchange for finished products. Double standards are applied by the affluent nations for import of value-added products from developed countries. The playing field of international commerce is far from level.

Musharraf said the international financing institutions have become increasingly wary of extending credit. "New conditionalities are continuously imposed. The downsizing of government, removal of subsidies and austerity are demanded without reference to the impact of such measures on the people," he said.

The Egyptian entrepreneurs included M Shafik Gabr, Chairman Arto Group for Investment and Development, Dr. Hamza Alkholi, Chairman FADICO, Naguidb Sawris, Vice-Chairman ORASCOM, Al-Mansour Al Tarzi, Chairman Egyptian Advisory House Emad Taymour, President AMNET, Khalid Raafat, Vice Chairman Egyptian Knitting and Readymade Co. Dr. Taher Helmy, Partner Helmy and Hamza, Sherif El-Magrabi, Chairman Magrabi Farms and Mahmouud Y-Rabie, Hony Consul of Pakistan, Alexandria.ÑAPP