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Friday March 29, 2024

Pakistan to banish circular debt, Dar assures WB

ISLAMABAD: Finance Minister Ishaq Dar said that the government has prepared a three- year plan to erase the monster of circular debt and now Central Power Purchasing Agency (CPPA) would be made operational that would pave the way for approval of $1 billion loan for energy sector including $500 million

By our correspondents
August 04, 2015
ISLAMABAD: Finance Minister Ishaq Dar said that the government has prepared a three- year plan to erase the monster of circular debt and now Central Power Purchasing Agency (CPPA) would be made operational that would pave the way for approval of $1 billion loan for energy sector including $500 million from the World Bank.
“There are pending issues including making CPPA operational and issuing market rules and now the Wapda’s meeting has been convened to resolve these issues. The government has prepared three year plan to tackle the circular debt and now it is expected that $1 billion loan for energy sector including $500 million from the WB will be approved very soon,” Finance Minister Ishaq Dar told couple of reporters outside the Q Block (Finance Ministry) after holding meeting with the WB’s visiting Managing Director Sri Mulyani Indrawati on Monday evening.
The visiting WB’s MD preferred not to talk with the media and contended only as saying that she will issue press statement on the conclusion of her visit to Pakistan on Tuesday (today). However, during the meeting the WB’s MD highlighted concerns about transparency and continuity of reform process and advised the government not to change the goal posts in order to achieve apparent and desired results. Three major areas of WB’s concerns including privatisation in transparent manner, revenue mobilisation and woes of energy sector that required consistency and continuity in order to resolve this crisis permanently. Upon insistence of the WB, the government revised its plan to tackle the circular debt and submitted again before them. The WB’s MD praised the plan but asked the government to ensure implementation on it in transparent manner as it is also linked with successful privatisation of power distribution companies (Discos).
The Finance Minister Ishaq Dar told the media that Pakistan floated the idea of regional connectivity by ensuring linkages with Afghanistan to beyond Central Asian Republics (CARs). Just like on the pattern of CASA-1000 MW regional connectivity, all other linkages will also be established with Afghanistan and other CARs, he added.
The minister said that the government had done 90 percent work on Development Policy Credit (DPC) for energy from the WB worth $500 million and pending issues remained making CPPA operational, issuing of market rules and implementing 3 year plan to tackle the circular debt. According to statement issued by Finance Ministry after the meeting on Monday, Managing Director World Bank Sri Mulyani Indrawati along with her economic team met the Federal Minister for Finance Senator Mohammad Ishaq Dar this evening at the Finance Division.
Ms. Mulyani and her team discussed with the minister important issues related to Growth and Energy DPCs of the World Bank and the progress so far being made to reform the economy of Pakistan. The minister acknowledged the support of Ms. Indrawati as a great friend of Pakistan and the cooperation of the World Bank on Growth, Energy, enhancing the educational facilities in Pakistan and in important projects like Dasu.
Ms. Indrawati commenting on her visit said that this is her 2nd visit to Pakistan and it has been very productive. “The prime minister, the finance minister and all the Government departments with whom we are working have extended us full support and we acknowledge their support”, said the MD. In Pakistan, the last two years had gone really well in terms of economic development. Pakistan had made head ways in promoting regional connectivity and extending trade ties with the countries in the region, also said Ms. Indrawati. She also appreciated the positive suggestions received from the Pakistan Government in preparing the policy framework for Pakistan. She said tomorrow through her press statement she will also share the positive outcomes of her visit.
Ms. Indrawati also appreciated the efforts of the government in enhancing the support of the poor families through the Income Support Programme. She also said that with the Census being held the next year, the system of identifying the poorest of the poor will further be improved. The finance minister also thanked the World Bank team for helping in restoring the lives and livelihoods of the TDPs affected by the ongoing crisis in Fata and by the recent floods in the country.
On the issue of cooperation in improving health facilities in Pakistan, the Minister said, “We hope that the World Bank will support along with other development partners in the eradication of polio and immunisation of each and every child of the country”.