Bankruptcy risk escape big gain for Pakistan: WB

Dr Kim says security situation in country has improved; PM appreciates WB support in Pakistan’s economic growth; work on reforms agenda to be expedited

ISLAMABAD: The president of the World Bank, Dr Jim Yong Kim, said on Tuesday that avoiding the risk of bankruptcy was a huge achievement of the Pakistan government. He also said that the security situation in Pakistan had improved.

Talking to Prime Minister Nawaz Sharif at the PM House, Dr Jim Yong Kim expressed full support for the government’s tough economic decisions and said that the World Bank supports the structural reform agenda. “I can recall our first meeting when I had shared my worries about Pakistan’s security, energy and macroeconomic stability. Let me state that under your leadership, Pakistan has witnessed phenomenal improvements in all three sectors and we support your endeavours,” Dr Jim assured the prime minister.

He applauded the prudent economic policies of the present government, saying that Pakistan’s economic outlook has become stable which is the result of the ardent efforts of the country’s financial team. “Pakistan is now on the path of increased economic growth and prosperity,” he added.

The president of the World Bank said the country’s important strategic location between the world’s two largest consumer markets offers unique opportunities to Pakistan for further economic development.

Dr Jim admired the government’s projects aimed at achieving better regional connectivity and cooperation.Prime Minister Nawaz Sharif stated that the government was making all-out efforts to bring improvements in every sector of the economy, including the development of mega-hydro power projects, rail and road infrastructure, education and health. He said the security situation had improved in the country, adding that work on the economic reforms agenda will be expedited.

The prime minister reminded the World Bank chief that his government believes in a liberal and private-sector driven economy. “Our efforts are aimed at ensuring an ideal business environment for theprivate sector as governments are not meant to do business. When private sector is adequately facilitated, the business benefits reach the entire country; when the governments start doing businesses then huge losses in the shape of subsidies are incurred,” emphasised the prime minister.

The prime minister appreciated the support of the World Bank in Pakistan’s economic growth and resuming lending policy after the assumption of office by the present government. The policy based loans would go a long way in helping the government implement its reform agenda and further improve the business environment in Pakistan, added the prime minister.

The premier said the assistance of the World Bank for the Dasu Hydropower Project and Tarbela-IV Extension Project will help the government in improving the energy mix and reduce dependence on expensive fuels.