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Nawaz Sharif vows to lure foreign investors
LAHORE. Pakistan. Feb 5: Pakistan's former premier Nawaz Sharif vowed to lure foreign investors back to the country after winning an absolute majority in general elections, reports AFP.
"The economy is in bad shape. We have to reverse" the trend. Sharif said after his Pakistan Muslim League crushed his rival Benazir Bhutto's Pakistan People's Party.
A darling of the business community, Sharifs family owns Ittefaq Industrial Conglomerate. one of the country's largest with interests in metal, sugar and textiles.
Sharif was swept to power on promises that he would reinvigorate the economy and rid the country of its reliance on overseas donors such as the International Monetary Fund (IMF).
'The economy needs to be turned around. We have done it in the past and we need to show a better performance." he told reporters here.
The first thing to do Is to create an Investment climate, attract foreign investment, get rid of debts and debt-servicing." he said.
Pakistan's main bourse, the Karachi Stock Exchange (KSE). rallied 3.32 per cent Tuesday as Investors welcomed Sharifs victory.
The KSE 100 share Index jumped 53.04 points to
1,650.36. said Exchange President Arif Habib, adding that he expected the bourse would remain strong in the short term.
The business community has welcomed the return of Sharif. Habib said, adding that
the incoming premier was expected to focus on economic is-
We hope that he will expedite the privatisation process which ultimately will contribute to reducing the foreign debts." the bourse chief said.
Speculation that Sharif would return to power had triggered a rise of some 300 points in the KSE share index in the past 20 days, he added.
President Farooq Ahmed Leghari, who sacked Bhutto three months ago to avert what he called an impending economic collapse, has vowed to implement an agreement signed with the IMF by the interim government.
Under the IMF conditions, Pakistan has to reduce the budget deficit from 6.3 per cent of Gross Domestic Product (GDP) to four per cent and maintain growth at around five per cent.
It also must speed up privatisation. increase revenues and cut government expenditures.
Following his election victory, Sharif stressed the need to rationalise the country's tax system. Tax reforms will boost the economy," he added.
Commenting on the pledges made by the caretaker government to donor agencies. Sharif said: "We will try to honour our commitment In the national interest."
But he added: "We have to provide relief to the general masses living under high inflation and difficult circumstances."
Sharif said he wants to rid the country of foreign assistance through self reliance, with the support of the business community.