PAKISTAN's ECONOMY GROWING AMONGST FASTEST IN ASIA: Hafeez Shaikh addresses UN Body

Islamabad, April 19, 2005

Dr. Abdul Hafeez Shaikh, Minister for Privatization and Investment, Monday said from a stagnant and declining economy, Pakistan today was amongst "the fastest growing" economy in Asia. He was delivering keynote address at the annual meeting of the United Nations Economic and Social Council with the Bretton Woods Institutions, WTO and UNCTAD, on 'Promoting investments in the low income countries'. The Federal Minister cited Pakistan as an example of how good national policies and good governance could turn around some of the worst performing economies.  He told the participants that in Pakistan, which was also a low income country, the foreign direct investment and remittances had more than doubled in three years, as a result of the important reform initiatives undertaken by the government and the attractive investment incentives given to the foreign investors.

Dr. Shaikh highlighted some of the innovative instruments needed for enhancing capital flows to low-income countries and  called upon the donor countries to reach out to help those countries that are serious about helping themselves. He stressed that important decisions were required at the forthcoming UN Summit meeting of world leaders in September to address the global development challenges.

Reviewing the progress of the global development agenda, he exhorted both developing and donor countries to take the difficult decisions necessary for meeting the Millennium Development Goals (MDGs). Domestic reforms and proper governance was necessary, even if not sufficient in the contemporary world. The objective of the event is to address issues of coherence, coordination and cooperation as follow up to the international conference on financing and development. The intention is to create a free-flowing dialogue between a panel of Ministers, senior officials and the high level participants of ECOSOC. The meeting has special significance as a first of a series of key events aimed to contribute to an effective outcome of the September Summit, which will review the implementation of the Millennium Declaration. Earlier, the Minister also chaired a Roundtable on the subject 'Trade, Investment and Private Flows.' Ideas were developed on reducing the cost of reserves held by developing countries, for promoting steady capital flows and private-public partnerships for private investments in infrastructure. The annual spring meeting of the ECOSOC brings together finance and development Ministers, senior executives and officials of international financial and trade institutions to discuss global economic and development issues in the follow up to the International Conference on Financing for Development in 2002.  The focus of discussions this year, was on policies and strategies for achieving MDGs through the expansion of trade, investment and private flows as well as through enhanced ODA, debt reduction and cancellation and provision of additional resources through innovative sources of financing.  In his closing remarks, the President of ECOSOC, Ambassador Munir Akram of Pakistan underscored the importance of taking actions in three important areas in the year 2005.  He emphasized continued coordination and cooperation between the World Trade Organization, IMF and World Bank and UNCTAD, and a clear demonstration of leadership by the member states in their respective capitals to achieve these objectives.

Secondly, he added there was need for a sincere reaffirmation by everyone to fulfill commitments already made to achieve international development goals.

Thirdly, he stressed "greater equity and fairness in global macro-economic environment." Important participants in the meeting this year included the UN Secretary General, Mr. Travor Manuel the Chairman of the World Bank Development Committee and Finance Minister of South Africa, Ms. Mary Whelan,  President of the UNCTAD and Development Board, Mr. Agustin Carstens, Deputy  Managing Director, IMF and several Ministers from developed and developing countries and many Executive Directors of the World Bank and IMF.