Consensus on five economic issues sought: Zardari's address to Parliament

President Asif Ali Zardari urged Parliament to build national consensus on resolving five major issues: energy shortage, circular debt, taxation reforms, restructuring of public sector entities and documenting the economy. Addressing a joint session of the Parliament, President Zardari said that "making tough decisions is the responsibility of leadership," and added.
"We are not afraid to lead and we know the way." Referring to the issues where a national consensus was required, the President stated, "These are the problems which the future generations will inherit, if not addressed through collective wisdom now. We need to build a national consensus on these issues."
"Tough decisions must be taken together. I invite all political parties for a national dialogue; sooner rather than later," the President said. Chief Ministers of three provinces, except Punjab Chief Minister Shahbaz Sharif, all governors, chiefs of three armed forces, diplomats and other high officials attended the joint session. The President said that Pakistan's economy has historically been hit by power shortages and its major reason is the absence of continuity in policies. Energy sector has suffered, because the policies were thoughtlessly reversed, he said.
"I call upon the business community, to give ownership to the economic policies, regardless of which government gives the policy," he said. The President said that urgent steps have been taken to meet the energy challenge. In this regard, he said that more than 1,800 MW of power has been added to the national grid during the last two years and alternate energy sources including wind power, are being exploited. He said to exploit vast Thar reserves work on a pilot project has started while work on 970 MW Neelum Jhelum Hydro power project was in progress. He added that next month the ground breaking of the 4500 MW Basha hydel project would be held, while the up-gradation of Tarbela would be completed by end of this year.
The President said that the subsidy regime has been rationalised. He added that tax reforms have been introduced, to mobilise resources. The tax net is being expanded, through introduction of the Reformed General Sales Tax (RGST), he said. The President said that the 7th NFC award after a gap of 19 years was a major achievement. As a result, over 300 billion rupees of additional revenues have been transferred to the provinces, he said.
"The provinces have been given the right, to collect GST on Services. Collection of direct and indirect taxes has increased, by eight percent and 12.5 percent, respectively," he claimed. He said that in 2007 foreign remittances were 6.4 billion dollars. Now these have increased and set to cross the 11 billion dollar mark this year. He said that foreign Exchange reserves have reached 17.5 billion dollars - also a record for now.
About agriculture sector, the President said that despite floods, agriculture has registered progress and Pakistan has become wheat exporting country. Six lac tons of wheat has been exported this year, he said. "We expect to achieve target of 15 million bales of cotton during 2010-11.
Rural economy has greatly benefited. Our exports are expected to exceed 24 billion dollars this year- again a record for now," he said. The President said that under the privatisation policy of the coalition government, the outright sale of national assets and institutions would not be allowed but a Public-Private partnership, with shares offered for sale through stock exchanges would be the way forward.
He said that the government has embarked upon a comprehensive plan, to address the economic challenges including reduction in non-development expenditure, reforms in power sector, restructuring of public sector enterprises, incentivizing remittances and special programmes for poverty alleviation.
The President said that the government has taken steps, to restore dignity and honour to labour. "Now the workers have the right to seek legal remedies against dismissal. An employees' Stock Option Scheme has been introduced, transferring 12% shares to workers, in state run enterprises. It will benefit 500,000 families. Workers will also be given representation, on the Board of Directors," he said.
He said that in the memory of Shaheed Mohtarma Benazir Bhutto the cause of women empowerment and poverty reduction is very dear to us. He said that over 74 billion rupees have been disbursed to the poor beneficiaries, through the Benazir Income Support Programme (BISP). He said that mobile phone banking has been launched, for the transparent transfer of benefits. A scheme of soft loans, of up to 300,000 rupees for setting up of small businesses, has been launched, he said.
He said that the fight against militancy and the unprecedented floods last year further worsened the economy. According to the Damage and Needs Assessment, the overall damage to our economy, is nearly 10 billion dollars, he said. "We cannot permit the use of our soil for terrorist activities, against any other country. We will not. The fight against militancy may be long and bitter. But we have no other option except to win."
About foreign policy, the President said that Pakistan's foreign policy was aimed at advancing our national security, promoting peace and economic agenda, while safeguarding national dignity, sovereignty and independence. The President said that we remain committed, to building a long-term partnership with US, based on mutual respect, mutual interest and sovereign equality.
He said that our strategic co-operation with China continues to grow from strength to strength. Relations with Afghanistan have also undergone a sea change, he said. "For the first time Pakistan has engaged with the European Union at the summit level. Long term co-operation with the UK, France, Germany, Italy and Spain has helped advance our economic agenda."
About Pak-India relations, he said that full spectrum dialogue process has been resumed with India. "We seek a just settlement of the Jammu and Kashmir dispute in accordance with the UN resolutions while respecting the aspirations of the people of Kashmir," he said. He said that we have upgraded our relations with Japan, to a comprehensive partnership, for peace and development.
"We are profoundly saddened over the tragedy unleashed by natural disaster in Japan. I wish to express the great sympathy of the people of Pakistan, to Japan in their hour of grief. He said that the 18th Constitutional Amendment is a historic achievement which has given maximum autonomy to the Provinces. About accountability, the President said that we believe in transparent, and across the board accountability and draft Bill was already in the Senate in this regard. The President said reforms in FATA, and amendments to the FCR, have also been finalised.
"We believe in reconciliation, and not confrontation. I commend the Prime Minister, for pursuing the policy of reconciliation and consensus, given by Shaheed Mohtarma Benazir Bhutto," he said. Before initiating the speech, the President strongly condemned, on his and on behalf of the people of Pakistan the deliberate desecration of the Holy Quran by a fanatic in Florida.