PM's stale rhetoric, no solutions

LAHORE- Prime Minister Syed Yousuf Raza Gilani once again warned the nation to brace itself for water, electricity and gas crises.
Addressing an Achievement Award distribution ceremony organised by Lahore Chamber of Commerce and Industry (LCCI) here at Aiwan-e-Iqbal, on Sunday, Gilani said that the present government believed in national reconciliation for the sake of political stability, which would eventually lead to economic prosperity and well-being of the country men.
The prime minister identified three main problems: scarcity of water, electricity and gas, all of which, he said, needed urgent attention to be resolved. He said he was well aware of the fact that industry suffered a lot in winter when there was massive load shedding of gas. He said the government had evolved a strategy to counter this problem, but fell short of giving any details about it. Talking about the water issue, Gilani said it would not go away overnight, but for every wrong there was a remedy.
Reiterating his earlier statements, Prime Minister Yusuf Raza Gilani said that political stability in the country was imperative for economic growth, and his government was committed to create an enabling environment to promote industry and to attract foreign investment.
The PM underlined maintenance of law and order in the country as second priority of his government, saying that once peace is restored in areas affected by terrorism, the country would become ideal for foreign investment. He hoped that the issue of terrorism would soon be over, as Pakistan army had made great gains against terrorists in the troubled areas with the cooperation of people.
Apart from these priorities of his government,
Among other issues, the PM mentioned the NFC award, Council of Common Interest, FCR, FATA and Concurrent List, saying that these would also be tackled adequately very soon.
He said the government had the vision, ability and the passion to address all these issues.
About constitutional reforms, Gilani vowed to restore the 1973 constitution in its original form.
Z.A Bhuttos constitution would be restored as per aspirations of the people of Pakistan, he told the audience.
He said it was heartening to note that the business community viewed the governments mindset to be in conformity with the pre-requisites of economic growth. He assured that the present government fully valued the vital role being played by the private sector in economic development.
He said issues like falling exports competitiveness, lack of sophistication, diversification of products and markets stemmed from structural weaknesses inherent in the economy and must be addressed.
He said that responding to the need of having a logical national export competitiveness development program, Ministry of Commerce had provided a medium term plan called, Strategic Trade Policy Framework (STPF) 2009-12 in consultation with all stake holders. STPF would ensure continuation of Trade Policy for three years and the businesses could plan their production and export orders accordingly, he added.
He said that Rs. 35.22 billion had been earmarked to meet expenditure on proposed measures from Export Investment Support Fund over three years.
On supply side, he said, important policy initiatives included certainty in the interest rate for investment, reliability of electricity supply at mutually agreed time by the Electricity Distribution Companies (DISCOs) and insurance cover for visiting buyers.
For trade facilitation, the steps include facilitating presence in international markets through support for opening exporters offices abroad and opening of retail sales outlets, he said, and added that the STPF also envisaged sector specific initiatives such as compensating inland freight charges, technology, skill and management up-gradation fund for value added products, brand promotion support for surgical instruments, sports goods & cutlery, product development and marketing fund for light engineering, enhancing sophistication in surgical instruments - centre of excellence and compliance with safety standards.
He said government had declared the current year 2009-10 the 'year of industry and had taken initiatives to address the major horizontal issues impeding the growth of the industrial sector. The government has established the first ever SME Credit Guarantee Fund, worth Rs. 10 billion, he said, adding that this fund will be financed by the government and the private sector in the ratio of 50:50 over the next two years.
The government, he said, had already proposed Rs.2.5 billion in the budget 009 / 10 as its share to the fund. SMEs unable to produce collateral for bank loans will benefit from this facility. Similarly, Venture Capital Fund of Rs.10 billion is being established that shall be financed in the same manner as the SME Credit Guarantee Fund. A provision of Rs.2.5 billion has been proposed in this budget. This will go a long way towards promoting new start ups in the country, the PM told the audience mainly comprising the business community.
He said that with a view to promoting industrialization, value addition and promotion of exports, an Export Investment Support Fund worth Rs. 40 billion has been established for FY 2009-10. The Government will contribute Rs.10 billion towards this funds; another 10 billion would be contributed by Export Development Fund; while the balance Rs. 20 billion will be contributed by other government agencies through mopping up surpluses in commercial banks, he further told businessmen.
On this occasion, the PM lauded the philanthropic initiatives taken by LCCI and the business groups especially in the domain of health services.
Gilani extended his heartiest felicitations to the recipients of the award on their excellent performances and wished them all successes in their future endeavours.
Speaking on the occasion, Punjab Governor, Salmaan Taseer said government was committed to establish democratic norms and maintain order in the country for economic growth and investment. He described safe return of IDPs as a big achievement of government, saying that it had distributed Rs 7 billion among the affectees.
Talking about other achievements of government, he said that it was a matter of great pride for the nation that US President Obama and British Premier, Gordon Brown were going to co-host a meeting of Friends of Democratic Pakistan soon to fetch the much needed money for the country.
Speaking on this occasion, LCCI President Mian Muzaffar Ali said that people of Pakistan were facing extra ordinarily challenging times, and LCCI, strongly believed that economic and business opportunities in the country far exceeded a few bottlenecks that we as a nation are focused on removing.
Mian Muzaffar Ali said that energy and law and order were the biggest problems hampering industrial, economic and social growth. He said that LCCI viewed that execution and not just strategy, at this stage, was an important issue at the moment.
He also assured the Prime Minister on behalf of LCCI in particular and the business community in general of their fullest cooperation and appreciation of efforts in trying to make Pakistan the dream homeland that all Pakistanis have so far just dreamed of.