(MENAFN- Khaleej Times) Â Pakistan's prime minister-in-waiting Mohammad Nawaz Sharif has vowed to turn Pakistan into an Asian tiger in a short span of time.
Intensely pro-business Sharif, is Prime Minister for the third time - a rare event in Pakistan where political charms wash off quickly. His strength - a majority in the National Assembly which he won on the strength of his 1990s pro-business performance hat included promoting private entrepreneur - ship, and opening up the economy, privatisation of banks nationalised by PPP in 1970s to freeing foreign exchange, and industry to shipping.
Sharif, a scion of steel-making Ittefaq family, is inspired by the latest big business boost in the neighbouring Dubai, UAE and the Asean in the East Asia-China. He has the vision working to turn Pakistan into what he himself describes as "the new Asian Tiger linking the whole region spanning from Asean to Dubai-Saudi Arabia, and moving north to engulf Central Asian Republics and Western China." Being a man with such a vision, is loved by domestic and foreign investors.
Sharif (63) is highly regarded in the world financial markets, especially now as he has been elected on, chiefly, anti-corruption agenda. This agenda drowned the highly corrupt Pakistan Peoples Party regime, led by Asif Ali Zardari.
PPP was totally wiped out and swept out of power. Chronic power and natural gas shortages which shut down most of the industry, business and domestic use, the forex reserves that have depleted to an alarming level and are equal to pay for imports for just one month, the currency depreciating from Rs62 to 100 to a dollar, FDI and multilateral and bi-lateral aid inflows dried to a trickle.
PPP mismanagement turned external balances into shambles, IMF and World Bank crying to undertake tax and business reforms, and siphoning off of billions Rupees in corruption and crony-mafia deals, also dealt a fatal blow to Zardari.
Sharif's return to power has been hailed by political and business leaders from across the globe - from The President, His Highness Shaikh Khalifa bin Zayed Al Nahyan to His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the entire UAE leadership, and from President Obama to British Minister Daived Cameron. The UAE leaders in their messages said: "We hope, the verdict of the people of Pakistan will augur well for Pakistan, and under the new leadership, the country will overcome its difficulties in a short span of time." Sharif said: "I am impressed by the brotherly feelings from UAE. I am looking forward to strengthening the economic relations between the two countries."
All Pakistani business, financial, equity market and trade organisations cheered Sharif though resolution and newspaper advertisements, calling his victory as "blessing for business growth."
So, here is a huge opportunity for foreign investors to move in, do big business, and earn good profits. Since, he started his election campaign seeking Pakistanis to "vote for the Lion," his election symbol, the Pakistan bourses have shot up hugely, with Karachi Stock Exchange Index KSE-100 reaching historic record of 20,537.03 points this weekend. The bourse has been declared among the world's five best-performing with a huge share value rise.
On his road to turn Pakistan into an Asian Tiger, Sharif and Sartaj Aziz, his highly regarded former Finance and Foreign Minister, have devised a 10-point agenda as starters. It will be launched instantly as he takes the oath of Prime Minister within days. Sharif's Pakistan Muslim League (Nawaz), besides the National Assembly, has also swept the polls and won a huge majority in the Punjab, the province which is home to 62 per cent population out of 180 million in the country. This agenda will be implemented both in the whole of the country, as well as Punjab where the government will beheaded by his dynamic, and versatile, younger brother Shahbaz Sharif. His party, will form a coalition cabinet in Baluchistan, next to Dubai, across the Straits of Hurmoz.
The key plans to tart tackling within the fist 100 days of the government, and listed in the 10-point agenda include: overcoming the fatal energy and natural gas crisis, pushing down inflation, improving law and order situation and combating the fatal Al-Qaida-Taliban terrorism which has killed 5,000 Paistani military troops and 35,000 civilians and causing an economic loss of $75 billion; It also covers revival of the overall economy, improving business and diplomatic relation with the world on the basis of mutual respect, rather than being dubbed as a US-hanger on, vastly expanding relations with the Muslim World - particularly Dubai-UAE and Saudi Arabia, and streamlining relations with IMF-Word bank and multilateral financial organisations.
"The agenda is sill open for other plans to be included in key sectors and projects in the days ahead, before Sharif's formal induction into the government," a key minister-to-be and the person participating in the preparation, told the Khaleej Times.
"The agenda revolves round not only re-establishing the supremacy of law and superior courts, but also ensure respect for democratic institutions and to create a society based on social justice and guaranteeing the well being of all Pakistanis, without discrimination - one of the most important preconditions for economic revival. It includes restoration of the confidence of the domestic and foreign business community and other stakeholders in the future of the country.
The UAE, GCC countries and Iran are among the sources for immediate help in the field of energy including natural gas. They are also considered to be the likely key sources for FDI and government-level investment in a wide range of industries and commercial fields. They, particularly UAE, already have considerable presence in these fields, including banking, equity market and finance. A major portion of home remittances sent by Overseas Pakistanis is also originating in these countries, besides US and UK. All overseas investors can take back home 100 per cent of their investment and all dividend income and profits are re-patriable, under the existing policies.
What does Sharif say about his own plans, to be put into effect as part of his crisis management?
He said: "We are determined to make Pakistan an Asian Tiger during our tenure. We will establish friendly ties with US and India and other countries. We will establish more cordial ties with the international community, including Saudi Arabia and UAE. We will do whatever is necessary, and whatever we can, to improve law and order situation and counter terrorism. In the first 100 days of government, we will come out with policies on all major issues, confronting Pakistan, such as terrorism and the economy." The new Prime Minister, his past economic, and foreign exchange opening reforms, and pro-business record, and new business plans, have evoked a positive response from international financal markets and investors.
Standard & Poor's Rating Services, this week said, "Pakistan's Parliamentary election results set the stage for long-term stability of our 'B-' sovereign credit rating on the country." S&P's analyst Agost Benard, in a commentary entitled "Successful elections are crucial as Pakistan's balance of payments pressures mount," said: "We had outlined our view that timely, successful and credible elections were essential for Pakistan to deliver a government with a reasonable chance of tackling the country's economic imbalances, including looming balance of payments crisis. We believe the election outcome puts the incoming government in good stead to sew up an IMF deal soon."
This refers to a proposed $5 billion IMF loan which Pakistan may negotiate in the coming days.
"The loan is needed to stabilise external finances and to provide the policy framework for necessary fiscal and energy sector reforms. If successful, these efforts will underpin the continued stability of the sovereign ratings at the current 'B- level'," said Benard. This sums up the situation, as Pakistan and the financial world awaits for the newest Asian Tiger to roar.
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