close
Thursday March 28, 2024

WB reposes trust in Pak economy, revives $2 bn loan facility

Dar vows to enhance forex reserves to $17 bn

By our correspondents
February 26, 2015
ISLAMABAD: Pakistan has again become eligible for the International Bank for Reconstruction and Development (IBRD) funding after three years.
The IBRD funding facility was suspended in March 2012 because at that time Pakistan could not fulfill the required conditions on macro-economic stability. As Pakistan is now maintaining foreign exchange reserves of more than 2.5 months of projected imports and has satisfied other criteria of the World Bank (WB) under the Country Partnership Strategy (CPS), it will now be able to avail itself of $2 billion worth of IBRD funding during the four-year period of fiscal years 2015-2019, Country Director World Bank, Rachid Benmessaoud, stated in a meeting with Federal Minister for Finance Senator Ishaq Dar on Wednesday to discuss important matters on the future development roadmap of the country.
Mr Benmessoud appreciated the continuous improvement in the macro-economic indicators, including a significant growth in FBR revenue as well as GDP, low inflation, cut in budget deficit and improving foreign exchange reserve position of the country, which had played a pivotal role in restoration of this facility. When the present government assumed responsibilities, the State Bank of Pakistan (SBP) reserves were very low and after making repayments of foreign loans obtained by the previous governments, the SBP reserves touched $2.82 billion in February 2014. But corrective measures taken by the country’s leadership brought the economy back on track and on February 11 this year, the reserves touched $16 billion, including over $11 billion with the SBP.
While talking to Mr Benmessaoud and thanking him for this positive news, Minister for Finance Ishaq Dar said, “Our team has set a new target and that is to take our foreign exchange reserves to $17 billion and with the help of Almighty, will make every possible effort to achieve this target.”
Mr Benmessaoud appreciated the efforts of the government for uplift of the economy and felicitated the finance minister for his untiring efforts aimed at improving the economy and building a positive image of the country.
He said, “The WB team is happy to cooperate with Pakistan and its leadership keeping in sight their commitment to development.”
The current IBRD facility will be utilised for priority infrastructure projects, the finance minister said and added that this facility would help in realising the vision of the prime minister for the economic development of the country. He thanked Mr Benmessaoud for his cooperation with Pakistan in its efforts for economic development.The prime minister also congratulated the finance minister on the achievement and appreciated his hard work and commitment.