ISLAMABAD: The World Bank on Saturday offered Pakistan its support to realise the dream of ‘Pakistan Infrastructure Bank’ as well as to help the country improve its economic data complication system.
Country Director Patchamuthu Illangovan at the World Bank, during a meeting with finance minister Ishaq Dar, apprised him of the work being done by the Bank’s team to support the efforts of the government for improving data collection methodologies and rebasing the national accounts to present a more accurate picture of the economy.
Dar and Illangovan reaffirmed the commitment to further strengthen the partnership between Pakistan and the World Bank.
Plans for establishing the Pakistan Infrastructure Bank (PIB), in cooperation with the International Finance Corporation, were also discussed during the meeting.
“Once established, PIB will complement the government’s infrastructure initiatives by enhancing private financing and investment for infrastructure projects in the country,” finance minister said in a statement.
Finance minister’s schedule of engagements during his forthcoming visit to Washington for participation in the International Monetary Fund (IMF) and the World Bank spring meetings was also discussed during the meeting.
Minister Dar said the government is making efforts to consolidate the economic gains made in the last three and a half years, and achieve higher, sustainable and inclusive economic growth.“The government is committed to continuing the implementation of reforms in different areas of the economy,” he said, referring to the recently concluded Article-IV consultations with the IMF.
The IMF staff, at a meeting with minister Dar in Dubai early this month, said Pakistan’s economy has improved, but is facing challenges in the energy sector.
The IMF urged the finance ministry to continue the reforms promised under the Fund’s $6.7 billion loan progamme in order to achieve economic stability and growth. The country has graduated from the three-year programme.
It said economic growth in the current fiscal year is expected to reach five percent and current account deficit at 2.9 percent, while fiscal deficit was forecast at 4.1 percent of GDP. The inflation was projected at 4.3 percent. The Asian Development Bank, however, said the country would be able to achieve the budget deficit target of 3.8 percent of GDP for the current fiscal year, but it cautioned the government against overspending ahead of elections.
Manila-based lender, in its Asian Development Outlook 2017, forecast the current account deficit at 2.1 percent of GDP in 2016/17. The country’s growth is expected to edge up to 5.2 percent in FY17 and 5.5 percent in FY18. The forecast was same as the previous predictions in the last year’s outlook.
ADB outlook further projected Pakistan’s inflation at four percent in FY17 on rebound in oil prices, higher domestic demand and expanded domestic borrowing from the central bank.