ISLAMABAD: Minister for Finance Dr. Miftah Ismail, on Monday, reaffirmed the government’s commitment to provide local and foreign investors a favorable business environment to achieve double digit GDP growth.
Addressing an event titled “Conference toward 9 percent GDP growth” he stated that after a long stagnant GDP growth in the last several years, the country’ GDP experienced growth of 5.4 percent and reached 5.8 percent during the current fiscal year.
The event was organized by the Jung Group and Board of Investment to highlight the investment opportunities existing in different sectors of national economy.
He said economic growth at the rate of 5 to 6 percent was not enough to meet the economic challenges, adding that about 8 to 9 percent GDP growth was required in order to meet the growing need for employment, along with other demands, for the emerging middle class.
Due to a gradual increase in the national economy during the last five years, Pakistan’s middle class emerged and by 2050 it will be ranked among the 5th largest middle class economies of the world, he predicted.
The minister further added that the emerging middle class was providing opportunities for foreign investors in the manufacturing sector, among many other sectors. He continued, adding that this would also enhance the capacity of the local manufacturing sector.
Dr. Miftah also highlighted the measures being introduced by the government in federal budget 2018-19, besides the tax reforms in order to reduce the tax burden from the existing tax payers and measures taken for broadening the tax base in the country.
He said special tax incentives were offered for the local industrial sector to enhance the exports of the country as well as to produce the imports substitute to reduce the growing current account deficit.
He said the government had established special economic zones under China-Pakistan Economic Corridor Project (CPEC), adding that foreign investors were keen to invest in those zones as the government was offering 17 percent rate of return in energy generation projects.
Speaking on the occasion, Minister of State and Chairman of Board of Investment Naeem Y Zamindar said Pakistan was the 6th largest country of the world and its share in world GDP was only 0.3 percent.
He said it had a growing middle class and an encouraging investment trend as about 95 percent investment was domestic, adding that large chunk of foreign investment was going to oil, gas exploration and energy sector.
He said improving security situation in the country as well as energy supply for the industrial sector was offering foreign investors to explore the liberal investment opportunities in different sector of national economy.
He said economic growth of the country was recognized by the international rating agencies and forecast that Pakistan would become the top 20 economy of the world by 2020 and 15th by 20150.
He further said a recent survey conducted by the Japan had said that Pakistan was as safe as the US and called upon the foreign investors to invest here and take the advantage of the opportunities being introduced by the government.
Speaking at the conference, the ambassadors of China, Germany, Japan and Turkey were hopeful that Pakistan, with its abundant resources, could achieve the 9 percent growth in GDP with the help if its 64 percent youth population.
They stressed the need for projecting the true image of Pakistan at the international level as they said that the image being presented there was unfair, unjust and not reflective of the ground realities.
