TASK FORCE SUBMITS RECOMMENDATIONS TO PRIME MINISTER ON POVERTY ALLEVIATION & EMPLOYMENT CREATION-Hafeez Shaikh addresses USAID-SMEDA National Workshop

Islamabad, July 09, 2004

The PM's Task Force on Poverty Alleviation & Employment Generation has submitted its recommendations to the Prime Minister. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment who is also Chairman of this Task Force disclosed it during a national workshop on "Better Strategies and Increased Profits" held jointly under the auspices of USAID Mission in Pakistan and SAMEDA here today.

In his inaugural speech, Dr. Abdul Hafeez Shaikh urged upon the private sector to rapidly expand job opportunities to reduce unemployment and poverty in order to complement the substantial progress on macro economic reform agenda, which has improved the business climate. There was need to improve profitability, productivity and competitiveness to stimulate growth and employment, particularly at the SME level, he said.

The Minister said that Pakistan has made substantial progress on its macro economic reform agenda, which was evident from the 6 % Growth rate, increase in FDI, the accelerating domestic investment and the historic response to its Privatisation Program, which has yielded proceeds worth Rs.45 billion, including the oversubscribed share offerings of OGDCL, SSGC, PIAC all being positive indicators and a strong signal of confidence in Pakistan's Macro-reforms.

Dr. Hafeez Shaikh further stated that Pakistani business was facing increased competition in today's demanding global market and to succeed in this environment individual firms would need to tap into upgraded industrial structures. Upgrading Pakistani industries to compete in global markets represents an opportunity to develop and implement a range of near term, second-generation reforms. Unlike most reform efforts, however, the upgrading of Pakistani industry must be led by better strategy as  articulated by self-selected business leaders and selected representatives from the public sector who could enable this process of repositioning Pakistani industry for higher growth, he added.

He appreciated the interest and assistance being provided by USAID in collaboration with SMEDA to encourage the various industrial sectors to develop growth strategies, which would lead to improve value added production and increased profitability of Pakistani firms. He assured USAID of Ministry of Privatisation & Investment's full cooperation to encourage better coordination of the Government and provide an investment friendly and pro-private sector policies to assist the private sector.

In response to a request from Government of Pakistan, USAID and SMEDA have launched an initiative to encourage various industrial sectors to develop growth strategies. The sectors represented in the national workshop included agribusiness, fisheries, light engineering (electric fans), leather, gems and jewelry, surgical equipment, sporting goods, IT, and marble and granite in the mining sector. The workshop was the first phase of this activity, which initiated a dialogue with the private sector to gauge interest in this approach.