Summary CM KP also pledged an open door policy for addressing concerns of the investors.
Dunya News Report (Humaira Sajid)
ISLAMABAD – Chief Minister Khyber Pakhtoonkhwa, Pervez Khattak said that the provincial government has decided to delegate powers to the private sector so as to ensure their proficient role in the development process of the province. He said that the provincial government will ascertain that private representatives are also inducted in various boards constituted for the improvement of different institutions.
The decision was taken in a meeting of the provincial cabinet held at the Civil Secretariat on Monday. The meeting was also attended by the Provincial Ministers, Special Assistance and Advisors to Chief Minister, Chief Secretary as well as the Administrative Secretaries.
Besides reviewing preparations for the next budget, self employment scheme and professional tax, matters of the public service commission, Galliat Development act and Hydel development funds were also under a debate. A number of decisions were also taken.
Briefing media persons regarding decisions taken by KP cabinet, Provincial Minister for Public Health Engineering (PHE), Shah Farman said that the purpose of Budget Strategy Paper for financial year 2016-17 is to inform all concerned departments regarding the position of funds, so they could prepare their budgets on the basis of their priorities.
Moreover, Chief Minister KPK, Pervez Khattak has also pledged an open door policy for addressing concerns of the investors and to provide an utmost support to the international investors in order to promote the private sector of the province.
According to the financial experts, development cannot be achieved by public sector initiatives alone. The private sector, as an engine of economic growth, plays an intrinsic ole in any nation’s drive to eradicate poverty and foster an inclusive society. Economic growth generates wealth and thus is an important precondition in order to improve income and employment prospects in developing countries.
The growth of Private Sector enterprises and private investment decisions are largely affected by the policies of government shaping the investment and business climate. Khyber Pakhtoonkhwa province’s natural resource endowment offers the prospects to attract private investment while the poor infrastructure and unfriendly business environment with cumbersome procedures hold back the potential investments.
However, the Economic Growth Strategy Paper released by the government of KPK (GoKP) demonstrates commitment of the provincial government to introduce friendly business environment for the private sector and facilitate investment and the private investors. The government’s policies for the private sector as per the strategy paper are as follows:
• Curtail the excessive presence of government in areas where private sector can take lead e.g. Energy, Minerals, Tourism, High value added sub-sectors in Agriculture.
• GoKP will reposition its role ; enlarge its functions as a regulator and provider of essential public goods
• Reduce and streamline administrative burdens on firms to encourage formalization of the informal businesses
• Create a special unit – to assist the potential investors in fulfilling the legal/regulatory processes with critical time guarantees, essentially reducing the time to start businesses.
• Incentives – Tax breaks for a specified period and grants by GoKP , equally matching the quantum of invested funds
• GoKP to provide the necessary infrastructure in mineral rich regions/sites to attract the investors.
• Security/Insurance to be provided to investors to protect the investment being made by private sector
To create a business friendly environment through an institutional framework, GoKP will:
• Establish a Business Forum/Council with equal representation from government and private sector.
• Working groups will be formed under the auspices of the council to analyze the barriers, procedures and constraints hindering penetration of private sector, inflow of investments and public-private partnership.
• Subsequent to evaluations by working groups, policies and recommendations will be drawn to reform business climate in each sector.
• Business Forum will draw its power from the Chairmanship of Chief Minister/Chief Secretary to ensure implementation of the policies worked out.
However, the provincial government’s efforts to lure in investors will doubtlessly be challenged by the long-drawn and bloody history of extremism and militancy in the province.
Nevertheless, tremendous opportunities and natural resources remain unexploited of the province, along with its exceptionally hard working workforce that is willing to undertake all sorts of difficult endeavors.
Facilitating this great pool of potential enterprising community will not only trigger economic development in this area but it will also be resourceful for the other parts of the country.
