20000403

Gulf, ME states

keen to invest

in Pakistan: Shaukat

RAWALPINDI: Finance Minister Shaukat Aziz has said Gulf and Middle East states are showing keen interest in Pakistan's privatisation programme and would make investment once the economic situation of the country improved.

He was replying to newsmen's queries here at a local hotel following a function arranged by Old Hailians Association, Rawalpindi and Islamabad on Saturday night.

To a question about increase defence allocations in forthcoming budget, he said, no decision had yet been made so far in this regard. However, credible deterrence to ensure country's security would never be compromised.

When asked to comment on a news item regarding fudging in last year's budget, Shaukat Aziz said, there was reconcilement error in the fiscal data.

"Fudging is a wilful act and we do not have any such evidence," he said.

"Deficit numbers of last years due to reconcilement errors could not be reported correctly. In my views these were systematic problems in the accounting system, in reconcilement system which resulted in incorrect figures," said Shaukat.

"We have reconciled it and officials numbers would be presented in my budget speech."

About his visit to UAE, the Finance Minister said that it was a follow-up of Chief Executive Gen. Pervez Musharraf's meeting with UAE Crown Prince Sheikh Khalifa in Rahim Yar Khan.

UAE is interested in Pakistan's privatisation programme and "we went there to explain it," he said. UAE is interested in making investment in energy, telecommunication and other fields, he added.

The Finance Minister said, that he also met Pakistani community in Dubai and Abu Dhabi. He said economic issues were also discussed with Dubai Crown Prince Sheikh Mohammad and local investors.

With the improvement in its economy, Pakistan would get immense response from Middle East and Gulf states, he said.

Shaukat Aziz said that he was leaving for Bahrain on April 2 (Sunday) to attend Gulf Economic Conference (GEC).

The Finance Minister said that Bahrain Finance Minister Abdullah had invited him to present key-note address on the Islamic banking.

To a query about video conference regarding Hubco issue, Shaukat Aziz said, Hubco tariff offer was discussed.

Besides Pakistani officials, Hubco representatives and the World Bank President participated the conference, he said.

Earlier, addressing the function held in connection with annual reunion of Hailians, Finance Minister said the government was taking solid steps to strengthen country's economy.

Shaukat Aziz said that Pakistan was a nation which had been living beyond their means for many years. He said, borrowed money had not been utilised judiciously.

The Finance Minister said that the government was trying to bring about structural changes. He said, sustainable changes could not be brought about overnight.

He said the government was introducing various structural reforms including tax reforms and transparent privatisation process.

With regard to privatisation process, Shaukat said, 90 percent of proceeds would be utilised for debt-retirement while remaining 10 percent would be spent on poverty alleviation programmes.

He said structural and institutional reforms would help the government achieve its economic targets which are self-sufficiency, poverty alleviation and good governance.ÑAPP