Public-private partnerships pivotal for economic growth: Shaikh

Government to increase development programme resources.

KARACHI: To balance the economy of Pakistan, encouraging public- private partnerships is of utmost importance. Otherwise, those relying on the private sector move forward, while those depending on the public sector are left behind- leaving a significant gap in the growth of the nation, said Finance Minister Abdul Hafeez Shaikh.

Addressing the audience at the 4th Pakistan Centre for Philanthropy (PCP) corporate philanthropy awards on Monday, the minister further said that the difference between classes in the country is apparent as there is a significant gross domestic product per capita difference between the rich and poor. Shaikh said that the government was trying to establish operations where money is being taken from the rich to give to the poor.

He informed that the government has planned the expansion of the resources for the public sector development program for provinces by 50 per cent, of which Balochistan’s share would increase by twice its current amount. This is the first time in history of Pakistan that resources of this size will be available for provinces, he added.

Shaikh further said that Pakistan’s future aim is to be self-dependent by the year 2012. Furthermore, he also pledged, on behalf of the government, to give Rs20 million to the PCP.

The finance minister also complimented the business sector over the increase in philanthropic activities over the years. He said, “Despite the country’s dismal position on the Human Development Index, Pakistanis are amongst the world’s top philanthropic nationals”.

The present PCP survey shows that voluntary corporate giving reached Rs2.2 billion in 2008, from the base year figure of Rs223 million in 2000. Currently, this figure stands at Rs2.35 billion, he added. Shaikh also suggested that the PCP follow up on the results of their actions once the funds have been utilised. “Sharing each others’ experience will help learn lessons on how philanthropic activities can be improved to be more effective,” he stated.

Reformed General Sales Tax

Referring to the opposition that the RGST has faced from the business community, Shaikh said that all chambers, trade bodies and associations will be taken into confidence and advice would be sought from them before the implementation of the tax.

He said that the government has been debating over the RGST for over five months now and this is the longest that any issue has been discussed in the assembly. The finance minister said that consensus will be taken from all the stakeholders and only then will the RGST be implemented.

Award winners

The PCP awards were given for the years 2008 and 2009. Recipients of the award for the year 2008 for the highest volume of donations were: Pakistan Petroleum Limited, Jahangir Siddiqui and Company Limited, Oil and Gas Development Company, Sui Northern Gas Pipelines Limited and Pakistan State Oil.

Award winners for the year 2009 for the highest volume of donations were: Pakistan Petroleum Limited, Engro Corporation Limited, National Bank of Pakistan, Allied Bank Limited and Nestle Pakistan Limited.

Published in The Express Tribune, December 7^th, 2010.