UK pledges support for Pakistan’s growth
2 May 2014 01:07 PM
New support from the UK
will give a boost to small and growing businesses in
Pakistan.
Britain will drive economic
growth and investment in Pakistan by helping to create jobs, increase tax
collection and cut through red tape to make it easier for small and growing
enterprises to do business, International Development Secretary Justine
Greening announced yesterday.
The announcement came during a
two-day visit to the UK by Pakistan’s Prime Minister Nawaz Sharif,
including a meeting with Prime Minister David Cameron.
New commitments from the UK
include:
- support for over 200,000 small
and growing businesses to help create more than 400,000 jobs, half of them for
women and young people, and provide a boost to the economy of some £400
million-worth of new manufacturing and services;
- technical support and training
to help banks work with small businesses to manage investment more effectively,
and to help government reduce red tape and make it easier for small and growing
enterprises to do business;
- the DFID-funded HMRC Developing
Countries Tax and Customs Capacity Building Unit to provide expert advice to
help Pakistan build its own capacity and implement reforms needed to increase
tax take from 9% to 15% of GDP by 2018;
- as well as expert support to
help Pakistan’s Federal Board of Revenues design and implement a
country-wide tax awareness campaign.
International Development
Secretary Justine Greening said:
Making it easier for small and
growing businesses to get ahead and helping to create jobs will mean hundreds
of thousands of people across Pakistan can improve their own prospects, support
their families and send their children to school.
Providing British experts to
support a tax campaign and to build the Pakistan Government’s own
expertise will mean Pakistan can increase its own tax base. That reduces the
need for international aid funding and helps to lay the foundations for a more
stable and self-sufficient Pakistan.
The UK will also support a new
approach to delivering health reform in Punjab, with technical assistance and
funding through existing health programmes. This will include increasing
immunisation coverage across the province, improving care for new born and
maternal health and improving basic health units across the
province.
In addition, the UK will
continue to support work to provide vocational skills, jointly funding a
programme providing skills training for 135,000 poor people, 40% of them women,
and promoting a competitive skills training market. Existing work is now being
scaled-up to cover almost half of Punjab Province, with a focus on ten
growth-oriented industrial sectors.
Notes to
editors
- Initial funding for the new job
creation and training programme is £76 million, with technical assistance
and funding for health reform in Punjab coming from existing health
programmes.