From the presidency: Trade with regional partners in their currencies

President meets entrepreneurs to seek investment in development projects.

KARACHI: President Asif Ali Zardari has urged business leaders to make full use of the recently concluded currency swap agreements and to execute trades with regional partners such as China, Bangladesh and Sri Lanka in their currencies to help protect the country’s dollar reserves, informed presidential spokesperson Farhatullah Babar.

He was addressing the media after a meeting between the president and prominent businessmen at Bilawal House here on Friday.

The meeting was attended by Aqeel Karim Dedhi, Arif Habib, Arif Bokhari, Bashir Jan Mohammad, Nasir Bokhari, Mohammad Ali Tabba, Husain Lawai and other prominent businessmen as well as government officials.

Babar termed the interaction part of a series of “brainstorming sessions” being held to explore avenues for increased participation of the private sector in national development projects.

Furthermore, he said that the president stressed that  the “private sector can beneficially invest in infrastructure projects on build, operate and own basis (BOO) by raising equity through local stock exchanges” and asked business leaders to consider investing in “upgrading Pakistan-Turkey railway line for a fast cargo train service”.

He also revealed that the Turkish government and investors had shown interest in the project which would be named “Gul Train” to honour the Turkish president.

Regarding the much-awaited introduction of margin trading in stock exchanges, a prominent stock broker said, “the president has instructed the law secretary to formalise the securities draft and implement the same in January”.

Brokers were also assured that the Law Secretariat would re-examine capital gains tax to address concerns over carry-forward losses. The president also stressed that capital markets should be utilised to raise funds for diversified projects.

Public-private partnerships

Zardari chaired a separate meeting concerning the participation of private sector in infrastructure projects, particularly for the development of new city Zulfiqarabad.

The presidential spokesperson told journalists that “members at the meeting were informed that bids for appointing management consultants for the new city had been received from five bidders and the successful bidder would be finalised next month”.

Fazalur Rathman, the chief of the new city project, briefed the meeting. During discussions, the president stressed the need of ensuring transparency in the selection of builders and consultants. Babar said that “the next meeting about this project will be held in January to take a decision on the first phase of the project”.

Sindh Chief Minister Syed Qaim Ali Shah, provincial ministers Zulfiqar Mirza, Agha Siraj Durrani, Murad Ali Shah and Ayaz Soomro, National Bank of Pakistan President Ali Reza, State Bank of Pakistan Governor Shahid Kardar and other government officials were also present on the occasion.

Published in The Express Tribune, January 1^st, 2011.