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Economic growth rate seen at 4 pc this fiscal

RECORDER REPORT

ISLAMABAD: The overall economic growth rate during 1999-2000 is expected to be over four percent as compared to 3.1 percent in the previous year.

This assessment given to the Economic Coordination Committee (ECC) of the Cabinet was based on improved indicators compared to the previous year.

Informed sources told Business Recorder that the large-scale manufacturing saw six percent growth, exports eight percent and major crops like cotton, rice and sugar witnessed robust growth.

The ECC, which met under the chairmanship of Finance Minister Shaukat Aziz, was presented the economic performance of the first six months of the year and was informed that inflation was well below the target of six percent. Growth in agriculture and industry was showing considerable improvement.

The ECC also approved the establishment of a health insurance company, which would provide health insurance cover to individuals, groups and companies. A health insurance company is being set up with foreign collaboration.

The company would be a joint venture of EFU with Allianz of Germany intending to exclusively provide health insurance cover to individuals as well as groups and companies.

The company would not only promote easy access to quality but would also provide quality facilities to a very large segment of population in the country at a reduced cost.

The committee was presented a report on the financial restructuring of Wapda and was informed that the financial problems had arisen due to a number of factors, which included heavy line loses.

The ECC approved Wapda's financial restructuring plan which will include conversion of government's outstanding loans into equity. The financial restructuring of Wapda is a part of its overall strengthening and restructuring, which will include its corporatisation.

The ECC reviewed the wheat situation in the country and was informed the stock was satisfactory to cater for the local requirements. However, to firm up the reserves level, the meeting approved the import of 0.7 million tonnes in addition to the supply already lined up.

The meeting formed a committee under the food and agriculture secretary with representatives from Planning and Finance Divisions along with the provincial nominees, to develop a road map for the wheat policy for next year.

The ECC reviewed the prices and availability of essential items in the country and noted that there was a general stability in the prices of essential items. The kitchen items index for the week ending January 20 was 0.5 percent lower than the previous week.

The committee noted that annualised change in the kitchen items index on a week basis worked out to be minus 2.57 percent. The committee was informed that the decrease in the prices of kitchen items was due to a number of prudent policy decisions taken by the government and due to a satisfactory supply response from producers.

The ECC also discussed the financial restructuring of Wapda and it approved the restructuring plan, which included converting the government outstanding loan into equity.

The meeting was also attended by the ministers for commerce, industries and production; education, women development and social work, and environment, local government and rural development, the secretary general finance, federal secretaries and other senior officials.