Gilani for easing inflationary trend Reforms to ensure sustainable growth: Hafeez

ISLAMABAD (NNI) Prime Minister Syed Yusuf Raza Gilani has directed the finance team that fiscal and budgetary management should be improved so that inflationary pressures could be kept under control. The Prime Minister said this during a meeting with the Finance Minister Dr. Abdul Hafeez Sheik who accompanied by the Secretary Finance and Chairman Federal Board of Revenue called on him at PMs Secretariat on Monday afternoon. The Finance Minister apprised the Prime Minister of significant economic recovery including 42pc increase in exports in February over last year, the historic rise in remittances and the high level of foreign exchange reserve exceeding $17 billion. The Prime Minister was also briefed on the sustained and aggressive efforts to maintain fiscal discipline and secure overall economic stability. Measures for expenditure control and revenue mobilization were also discussed in the meeting. Meanwhile, bringing about economic reforms to overhaul the existing system is the way forward to ensure sustainable economic growth in the country, the economic managers believe. There is need to bring about changes at many levels if the country has to grow on sustainable grounds, they said adding the first step towards this direction could be the change in the mindset for accepting the innovations and giving up the illogical reasoning for accepting or rejecting ideas. The Federal Minister for Finance, Dr. Abdul Hafeez Shaikh has been promoting the idea for enhancing reliance on the private sector, function of which has produced good results. "The private sector functioning has produced good results," the federal minister said adding reliance on the private and business sectors should be adopted as growth strategy to ensure sustainable economic growth in the country. There is a need to come out of the strategy where domination of state apparatus is present everywhere which blocks genuine force to utilize their potential and abilities for economic development, he remarked. He said that the government should be responsible for policy-making while the private sector should be facilitated and provided conducive atmosphere to operate businesses and companies. The privatization of banks and telecommunication sector has shown the results in the form of improvements in the services and growth, he remarked adding "let allow people do what they are able to do". For the Deputy Chairman Planning Commission of Pakistan, Nadeem-ul-Haq, the sustained economic growth is linked to economic reforms which could be brought about by changing mindset, improving efficiency and providing incentives for good performances. "We are lagging behind in reforms," he remarked adding economic reforms were the way forward to enhance efficiency and productivity. For all this there is a dire need of bringing about changes in the overall mindset by adopting new ideas, however 'adoption of new ideas takes time, he remarked adding it took long to make people accept the idea of privatization and trade liberalization. Nadeem-ul-Haq also underscored the importance of privatization and outsourcing, leaving the government for making policies and regulations only. "Government should be responsible for policy making and regulations while the private sector should be facilitated and provided conducive atmosphere to operate businesses," he remarked.

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