GDP growth likely to exceed 6pc: Shaukat (Daily Times - May 21, 2004 )

ISLAMABAD: The finance minister, Shaukat Aziz, said that the GDP growth for the current fiscal year is expected to exceed six percent even though the target has been set at 5.3 percent.

He said this at the launch of the new airline, Airblue, which he said would contribute to the national economy by adding value to Pakistan’s services sector.

“The country is heading towards a higher growth path that would definitely create room for more business activity in Pakistan. Airblue would definitely contribute towards this growth.”

Mr Aziz praised the management of Airblue for starting a new airline, which would create more job opportunities. “The government and particularly the Civil Aviation Authority (CAA) that regulates the airlines business in Pakistan would definitely provide the necessary help as it has done in the past,” said Mr Aziz.

Mr Aziz said that airlines are a global business, which is highly competitive and only quality service could help Airblue survive against domestic and global competition. “The national flag carrier is also growing with a new fleet of modern planes. I hope that private sector airlines and PIA complement each other in sharing the market.”

Mr Aziz praised the company for deciding to make an Initial Public Offering (IPO) soon. He said that the capital market of Pakistan was already buoyant and the time to make an IPO would be best now. Mr Aziz said that Airblue would further promote tourism in the country.

The chief executive officer of Airblue, Shahid Khaqan Abbasi said that the airline would use an e-ticketing system, and would be the first airline in the region to use e-commerce in the industry.

“Though Airblue would have a flexible fare structure, the fares in general would not be cheap. We are focused on service, which we believe matters in the airline business,” said Mr Abbasi.

“Aviation is a heavily regulated sector in Pakistan and our demand is only for a prudent aviation policy and regulatory system. We would not demand any tax concessions or exemptions,” said Mr Abbasi. Mr Abbasi said that there exists a niche in the market for a new airline and Airblue is here to tap that potential. He said that Airblue was a public limited company and would soon make an IPO. [staff report]