Poverty reduced by 2 percent in two years, claims Shaukat

RECORDER REPORT

ISLAMABD (June 02 2004): Finance Minister Shaukat Aziz said poverty has reduced by two percent during the last two years from 2000-01 figure of 32.5 percent adding that investment to GDP ratio would reach 18 percent during 2003-04 from 16.5percent of 2002-03.

The minister was optimistic on finalisation of NFC formula before the coming budget.

Addressing a seminar recently, he listed eight future challenges including improving global image and quality governance, attaining higher GDP growth and creating jobs, sail through tough law and order situation, maintaining fiscal stability, correcting social sector indicators and developing better infrastructure. He emphasised the eighth challenge saying, "implementation, implementation and implementation".

He said that additional money went into agriculture sector is Rs 60-70 billion due to cotton and wheat crop.

He also said that an independent statistical authority would be set up to improve quality and credibility of data. The groundwork for such an organisation is almost complete and a new set up would be created for improving quality data provision. After the budget announcement new Household Income Expenditure Survey (HIES) would actually measure the poverty rate.

The consolidated poverty spending (including provinces) in 2004-05 would be Rs 278 billion. In 2003-04 these were Rs 238 billion.

The minister said that the budget would move the economy ahead creating economic activity. It would create opportunities and improve investment. He gave Malaysian example, where Mahatair took 18 years in putting the country on development track and reforms are still going on.

The per capita income touched $ 650 million during 2003-04 from $ 460 of 2002-03.

Responding to some comments he said that India had not achieved fiscal stability and comparison between Pakistan and India is not understandable.

He said that provincial debt is high and that was the loans from National Savings, which entailed higher rates and with the passage of time the effect of such debts would reduce.

He said that water and power and agri-finance would be given due importance in the budget. The banking sector farm loans excluding Zarai Taraqiyati Bank Limited (ZTBL) have surpassed the loans given by ZTBL.

Copyright Business Recorder, 2004

Commission on Poverty Reduction and Employment set up

ISLAMABAD (June 04 2004): Prime Minister's Commission on Poverty Reduction and Employment has been set up to suggest measures and programmes to reduce poverty and generate employment opportunities in short- and long-term framework.

The commission will also co-ordinate, review, design and monitor implementation of poverty reduction and employment generation activities in the country.

Poverty reduction and job creation has been the key objective of the present government for which a number of measures have been taken and various projects were initiated.

Prime Minister Zafarullah Jamali had constituted a task force under the Privatisation and Investment Minister to suggest initiatives for reducing poverty and creating jobs in the country.

The task force on Thursday presented its recommendations before the prime minister. With a view to implementing its recommendations and promoting the cause of employment generation and combating poverty, the prime minister approved setting up a commission.

The commission will review and co-ordinate the existing work relating to poverty reduction initiative of the government. It will also devise future strategy to combat poverty and suggest long- and short-term measures to address the problem faced by the poor.

The commission would also identify such projects, which could generate economic activity to create more jobs and reduce poverty.

Jamali appreciated the work done by the task force in making recommendations for addressing the problems of poverty and unemployment.

He said the government is committed to address the issue and full support would be given to the commission to undertake its work, while making review of the implementation of various programmes.

He said increased allocation for the next year's PSDP (Rs 202 billion) and launching mega projects would not only create employment opportunities, but would also generate economic activity.

It would also provide enabling environment for private sector investment and result into increased GDP growth rate.

Copyright Associated Press of Pakistan, 2004