Pakistan becomes 18th largest world economy: Dar

WASHINGTON: Finance Minister Mohammad Ishaq Dar on Sunday said Pakistan had become the 18th largest economy of the world whose foreign exchange reserves had risen to $17.67 billion.
The foreign exchange reserves are expected to hit a historic high this year due to the growing international confidence in Islamabad’s economic direction, he told the Washington-based Pakistani journalists.
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.”
He said the economic growth rate had registered an increase in addition to a marked decrease in inflation.He was flanked by Pakistan’s Ambassador to the 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 dozen 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.
Dar cited a series of macroeconomic indicators, including the GDP growth, low inflation, successful return of the country to the international bond Sukuk and equity markets which, together with an unprecedented completion of six levels of homegrown reforms with the IMF, have tremendously enhanced world financial institutions’ confidence in Pakistan’s economic prospects.
Dar said the Operation Zarb-e-Azb will cost $1.75 billion while the country required $800 million for the repatriation of Temporarily Displaced Persons (TDPs).The minister said the government intended to privatise 35 entities and will pay loans through the privatisation of HBL.
He said the shares of distribution companies will be sold in the next phase. He said remittances were likely to increase by 15 percent this year.Regarding the Chinese President Xi Jinping’s visit to Pakistan, Senator Dar said the two countries would benefit enormously from the economic cooperation, which will see Beijing investing billions of dollars in infrastructure projects with the involvement of 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.Responding to a question, the finance minister said Pakistan had a clear-cut position on territorial integrity of Saudi Arabia and the defence of the two Holy Mosques as contained in the parliamentary resolution on the question of Yemen war. “Pakistan will stand shoulder to shoulder with Saudi Arabia in the event of a threat to its territorial integrity.”
Dar said the resolution was misunderstood by some in the Arab world and saw no negative repercussions on account of this for Pakistani expatriates, saying the highly talented Pakistani human resource had contributed critically to the development of the Gulf region.
“There should have been no confusion about Pakistan’s position. We have condemned the Houthis and supported the restoration of the elected government of President Hadi. Pakistan, along with Turkey, plays a reconciliatory role and wants to bring them to the negotiating table.”