BISINISS WORLD NEWS

KARACHI: Finance Minister Shaukat Tarin said the Pakistani currency was being traded at higher exchange rate by artificially putting it on this level in 2008; as a result, the national economy was badly affected and inflation soared.

He was speaking at the award distribution and closing ceremony of Expo Pakistan 2010 at Karachi Expo Centre. Commerce Minister Makhdoom Amin Fahim was also present on the occasion.

He said the rupee was artificially fixed at 23 percent which gave impetus to the inflation and the business cost also multiplied.

Tarin said he transferred the rupee to its real exchange rate, which help take down the inflation and increase the national exports.

He said the government had allocated large funds for the development of small and medium enterprises (SMEs) while some foreign groups were also keen to provide a credit line of $ 250 million to SME

He said the federal government had allocated Rs 10 billion under venture capital fund for SMEs while the government will provide a 50 percent guarantee for the credit to SME through banks.

The minister underlined the need for consolidating the industries so that they can expand their capacity and ensure smooth supply of large orders at better prices.

He pointed out that Pakistan was converting one million bales of cotton for $ 1 billion while India was converting one million bales into $ 2 billion and China $ 4 billion.

Tarin also underlined the need for market and product diversification and promotion of intra-regional trade between ECO and SAARC blocks to boost country s exports.

He said Pakistan had urged the US to include textile in GSP so that Pakistan can get benefit.

To a question, he said that 5,000 megawatts of power will be generated from Thar coal in next five years. We must refrain from furnace oil and gas for power generation and switch to alternate energy like solar, wind.

To a question, he said that his business was badly affected due to his official engagements. "I need to raise Rs 7 billion capital for my bank Silkbank and I cannot raise this fund as Finance Minister."

"I am also not happy to leave the government at a time when the economy still needs my services. However, this is against the principles of good governance and I should not be in the government while raising funds for my private bank," he explained.