1	Economic Revival through Industrialisation
2	INDEX
3	INDEX (Cont’d)
4	Pakistan’s Economy at a Glance
5	Pakistan’s Economy in Historical Perspectives
6	Growth of GDP & Industrial Sector
7	Industrial Base
8	Performance of Selected Industries (1999-00)
9	Major 300 foreign companies in Pakistan
10	Multinational Companies in Pakistan Country/Sector Break-up
11	Industrial Infrastructure
12	Manpower
13	Structural Reforms Economic Restructuring through privatization/ deregulation/liberalization Strong focus on developing Small and Medium Enterprises: SME operations established in all major banks Micro-Finance Bank established Capital Market Reforms: SECP involved in stock exchange risk management systems Restrictions on short selling Introduction of shorter clearing cycle and more sophisticated clearing system Non-member management of stock exchanges Public Sector Development Projects initiated
14	Structural Reforms ……(Cont’d) Fiscal and Tax: Broadening of tax base Minimization of tax numbers Reduction in tax rates – Public Cos: 38Õ35% - Other Cos: 48 Õ45% - Banking Cos: 58 Õ50% Strengthening tax administration Simplifying Sales Tax regime Industry and Trade: Flexible exchange rate policy being pursued Reduced maximum tariff and number of slabs (35Õ30%, 5Õ 4) Due Tariff protection to industry Liberal Trade Policy – Market based Reduction in duty of 4000 tariff items out of 6000 Value addition for core export products Export diversification
15	Structural Reforms ……(Cont’d) A revitalized Privatization Program Privatization Law to protect investors Prioritization of asset sales and diversified divestment strategies Establishment/strengthening of independent regulators Securities and Exchange Commission of Pakistan Pakistan Telecommunications Authority National Energy and Power Regulatory Authority Gas Regulatory Authority
16	Structural Reforms ……(Cont’d) Oil & Gas: Free entry of private sector Public sector corporations being privatized Gas/Petroleum Regulatory Authority/Board to regulate the sector Petroleum pricing linkage with International price Government role in petroleum procurement being eliminated Gas prices being rationalized for new investment IT & Software: IT & Software priority sector Legislation underway for secure development of e-commerce Liberal charter for establishment of IT Universities Technology Parks being established in private sector Significant increase made in the budget allocation for R&D in IT
17	Structural Reforms ……(Cont’d) Governance: Right sizing of Government machinery Monitoring of Public Sector Organizations Improving the Transparency of economic and financial policies Good governance: Civil Service Reforms Police Reforms Judicial Reforms Autonomy of FPSC Accountability Political: Full cooperation with World Community against terrorism Bold steps taken for regional and domestic political stability Dialogue with India Local Governments – devolution of power National elections – October, 2002 Anti Terrorist Law De-weaponization drive Ban on weapons display
18	Investment Policy Reforms
19	Pakistan’s Investment Package
20	Pakistan’s Investment Policy - Regional Perspective
21	Agriculture
22	SME SHARE IN TOTAL EMPLOYMENT
23	Oil & Gas
24	Growth in IT Internet users increased 400% in the last 8 months Internet penetrating into 430 cities of Pakistan International connectivity for voice up by 50% over the last 54 years 200 cities on Optical Fibre up from 100 one year ago Cellular phone usage increased by 400% in the last 11 years IT investment potential of US$ 1-1.5 billion 200+ ISPs and Software Cos
25	Investments in IT & Telecom
26	Investments in IT & Telecom
27	Power
28	Public Sector Projects Makran Coastal Road Four roads in Northern areas 3 IT Universities Gomal Zam (water storage) Gawadar Deep sea port Thar Coal Project Greater Thal Canal Quetta Water Supply Kachhi Canal
29	Textile Machinery Imported
30	AVERAGE ANNUAL GROWTH RATES OF GDP
31	Pakistan's Competitiveness
32	Trends of Revenue & Expenditure
33	Macroeconomic Imbalances
34	Limiting factors/Reasons High growth in population Inconsistent & un-coordinated policies Import Substitution Industrialization Inefficiency - Economies of scale Cost expensive - Low value addition Upto 1971 – West and East Pakistan (Two countries) Nationalization (1972) Heavy reliance on foreign financial assistance Less utilization of local resource base Political instability Economic sanctions (1998) High spending on defence and debt servicing