Forex reserves to be raised to $19b by Dec end, says Dar

Minister for Finance Senator Ishaq Dar said late on Thursday that the country ‘s economy was on the path of stabilization, adding that foreign exchange reserves would be enhanced to $19 billion by the end of this year.

He stated this while addressing the post budget 2015-16 conference of Institute of Cost and Management Accounts of Pakistan (ICMA) at a local hotel. Economic experts, chartered accountants and leaders of the business community also attended the conference. Former finance minister Dr Hafeez A Pasha and ICMA President Kashif Mateen Ansari also spoke on the occasion.

Finance Minister Ishaq Dar said that reserves of $19 billion would be the highest ever reserves in the history of the country. He added that international credit rating agencies were improving the ratings of the country, adding said that international rating agency Moody’s has upgraded Pakistan to B-3 category due to economic growth and stability in the country.

He said that in 2012, Moodys lowered Pakistan’s crediting to negative due to deteriorating economic conditions and poor economic indicators.

Dar said that the present government came into power in 2013, the country’s economy was in shamble and on the verge of financial default. He added that before coming into power, the PML-N planned a roadmap aimed at revamping national economy and bringing economic stabilisation through austerity measures.

Dar said in June 2013, the government had a clear roadmap of three objectives. These were to prevent Pakistan from default in 2014, achieving macroeconomic stability by June 2015 and promoting an inclusive economic growth for creation of job opportunities and providing resources to alleviate poverty from third year onward.

“We formulated policies and programmes to achieve these objectives and never hesitated in taking difficult decisions, no matter how unpopular but were critical for the economic revival. The economy has now stabilized and is poised to grow at an accelerating rate,” he remarked.

The minister said the economic growth during the outgoing year was provisionally recorded at 4.24% compared to the revised estimate of 4.03% last year.

He said Per Capita Income, which stood at $1384 last year, had  increased to $1512, showing growth of 9.3% while inflation was recorded at 4.6% for July-May 2014-15, the lowest in 11 years.

“FBR revenues were up by 16.4% during 2013-14 and have risen by nearly 13% in the first 11 months of 2014-15 and are expected to close at 15% by the year end.”