Amid growing international confidence in Islamabad’s economic direction, Pakistan’s foreign exchange reserves have risen to $ 17.67 billion and are expected to hit a historic high this year, Finance Minister Ishaq Dar said.
Currently, the State Bank of Pakistan holds $ 12 billion while private banks have the rest of the total reserves.
“Our next target is to cross the past highest level of $ 18.29 billion in reserves this year. We have not had the luxury of a front-loading IMF facility as was the case when that level was achieved but we have built up reserves on the basis of a range of policy measures and macroeconomic stability,” Senator Dar told Washington-based Pakistani journalists.
He was flanked by Pakistan’s ambassador to US Jalil Abbas Jilani and Finance Secretary Dr Waqar Masood Khan. Parliamentary Secretary for Finance Rana M Afzal, Governor State Bank Ashraf Mahmood Wathra and Secretary Revenue were also part of the high-level Pakistani delegation that attended the Spring 2015 IMF-World Bank meetings.
The finance minister was speaking at the end of a hectic three-day visit to Washington, during which he had around three dozens meetings including with the IMF and World Bank leaders and top US treasury, State Department, USAID, OPIC, US-Pakistan Business Council officials and investors.
Senator Dar also revealed that the seventh review of Pakistan’s economic performance under the IMF programme would take place from May 1 to 9 in Dubai.
Regarding Chinese President Xi Jinping’s visit to Pakistan, Dar said the two countries would benefit enormously from the economic cooperation which would see Beijing investing billions of dollars in infrastructure projects with the involvement of the private sector. He said the motorway project would connect Peshawar with Karachi. The finance minister also had a meeting with his Chinese counterpart on the sidelines of the Spring gathering.
Moreover, Dar said operation Zarb-e-Azb will cost $1.75 billion and Pakistan requires $ 800 million for repatriation of Temporarily Displaces Persons (TDPs).
In the meanwhile, talking to IMF Deputy Managing Director Mitsuhiro Furusawa in Washington, Dar reiterated the government’s commitment to continue reform agenda to put economy on a sound footing.
The minister said the 6th IMF review had been completed without a waiver after Pakistan’s fulfilment of the performance criteria. He especially mentioned the build-up of foreign exchange reserves, decline in inflation and discount rate and reduction of fiscal deficit and current account deficit.
The IMF Deputy Managing Director congratulated finance minister on successful 6th review of IMF programme. He expressed the hope that Pakistan would continue its economic policies and reform agenda.
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