|
Pakissan.com;
|
 |
|
News Channel |
|
High food inflation benefiting farmers: adviser
By Hamid Waleed
LAHORE (June 16 2007): The increasing rate of food inflation has directly increased the income of the farmers, said Adviser to Prime Minister on Finance Dr Salman Shah.
Interacting with reporters, Dr Shah said the rich class of the country has no problem with the present high inflation rate in the country and therefore the government has focused the poor class in the relief package of budget 2007-08.
He said core inflation has come down but food inflation is rising in the country due to support price mechanism adopted by the government to ensure maximum benefit to the rural economy.
According to him, billions of rupees are trickled down to the rural economy in result of support prices announced by the government for wheat, sugarcane and cotton crops. However, he admitted, that the country’s consumers, particularly the poor ones, are badly hit by government’s policy and therefore it has offered huge subsidy in the budget.
Dr Shah further disclosed that he has made it clear to the Utility Stores Corporation high-ups that all USCs should be opened in slum areas. Similarly, he added, the quality of products offered there and the government would also ensure proper monitoring. Besides, according to Dr Shah, government has also allocated Rs 50 billion for community programmes and subsidies on fuel, power and housing sectors to support the lower income groups.
Regarding power shortage, he said the government was in process of ensuring 400-mega watt electricity through captive power and other sources. According to him, unforeseen demand in electricity created energy crisis, as both industry and domestic power demand has reached to 8 percent and 92 percent of total production respectively.
Dr Shah expressed the hope that country would be able to get 900-mega watt additional electricity by the end of June with improvement in water levels in dams and other alternative sources.
Earlier, Dr Shah said the country would soon witness substantial investment in manufacturing and IT sector. In the manufacturing sector, he said, the telecommunications and financial sectors are already experiencing huge growth and engineering is the next area where huge investment in expected. According to him, the demographic situation of the country has made Pakistan attractive for foreign investors.
At one point of discussion, Dr Shah said there is no need of making any upward or downward change in the exchange rate and latest imposition of surcharge on import of raw materials would balance out rising trade deficit.
He said exports of the country would register growth after passing through the adjustment period and suggested the textile sector to focus further on marketing.
He said international research organisations are focusing Pakistan aggressively and Pakistan is being declared as a ‘favourite’ by world-renowned organisations.
Courtesy Daily Times |
|
|
|
|
apinbanner
|
|
|
