Economics, politics, security inter-linked: PM

ISLAMABAD (APP) - Prime Minister Syed Yousuf Raza Gilani on Friday said the economic sustainability, political stability and security concerns were inter-related and affecting each other directly. The govt, he said, was focusing on all the three points to ensure peace and prosperity for the people. Gilani was talking to the World Bank delegation led by Isabel Guerrero, Vice President World Bank S Asia Region, which called on him at his chamber in the Parliament House. The prime minister said the economic pressures were mounting due to power shortage as the foreign companies, engaged in various projects, had delayed installation of plants because of the to security concerns. This, he added, not only slowed down the economic growth but also resulted in unemployment, while the development budget was also slashed to meet the security needs. The prime minister appreciated the support being extended by the World Bank in the shape of soft loans and funding of social sector projects and noted that the international community, particularly the US and Friends of Democratic Pakistan, had realised the difficulties being faced by Pakistan and were forthcoming in their support in various sectors. Gilani termed the development of the militancy-hit areas as the top priority. He also highlighted the salient features of the progress made by Pakistan towards macroeconomic improvement in spite of daunting challenges. He informed the delegation about the introduction of VAT legislation in the federal and provincial legislature and said its passage would prove helpful in generating revenues for reducing the financial constraints. Isabel Guerrero congratulated the prime minister on the political consensus in the Parliament for constitutional reforms and remarked that political stability would definitely contribute towards economic growth and development. She further mentioned that the World Bank was preparing a new strategy for assistance to Pakistan keeping in view the political and economic stability in the country, while an assessment report was also being compiled to determine the needs of the areas affected by extremism. She also apprised that the WB had also earmarked US $ 100m for various development projects in the social sector for Pakistan. Advisor to Prime Minister on Finance Abdul Hafeez Sheikh and Finance and Economic Affairs Division secretaries were also present on the occasion.

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