US Federal Reserve Board's Chairman, Allan Greenspan on Monday appreciated "the hard work", Pakistan is putting-in towards economic development.
"Pakistan has successfully tried to wean itself away from the International Monetary Fund (IMF) and graduated for the international market", Greenspan said this during a call on by the State Bank of Pakistan (SBP) Governor, Dr Ishrat Husain, held with him. The Ambassador Ashraf Jehangir Qazi was also present in the meeting.
The Chairman, Greenspan appreciated the comprehensive economic reforms undertaken in Pakistan since President General Pervez Musharraf took over the government, and hoped that the new government would further strengthen and broaden these reforms.
On the occasion, the SBP Governor briefed Greenspan of the progress attained by Pakistan during the last four and a half years.
He disclosed that a 32-member joint mission of the World Bank (WB) and IMF officials visited Pakistan recently to see for themselves "the extremely positive" economic indicators achieved by the Pakistan.
They concluded a financial sector assessment of Pakistan and found Pakistan's banking system "extremely sound and progressive.
Dr Ishrat also referred to the paradigm shift in many sectors of the economy. At the micro-economic level, he said Pakistan had done extremely well, and the same had been international acknowledged.
In banking sector, the shift in arrangement was a result of effected banking reforms, including privatisation of the major banks, he said and added 65 percent banking was in the private sector.
Because of reforms there was a healthy competition and the baking cost for clients had gone done remarkably, while the quantum of performing loans had decreased substantially, and a record rate of loans had touched 95 percent.
Dr Ishrat Husain said the interest rate had lowered, because bankers of the international standing were now heading banking sector.
The Governor also stated that the international confidence in Pakistan's economy was shown by the success of recent issuance of the Eurobonds, which were oversubscribed four times ie for bonds of 500 million dollar, the subscription generated was 4 billion dollars.
Greenspan is treated as a high-grade icon in monetary and fiscal policies and administration. He controls US monetary policy by influencing short-term interest rates and, in turn, the cost of credit to American companies and consumers.
In his meeting with the UK Minister for International Development, Hillary Benn, the Finance Minister discussed increased assistance being provided by Britain to Pakistan, and its further expansion.
They appreciated Pakistan's economic reforms, which has led to attainment of higher growth and congratulated Pakistan for adopting course of prudent fiscal and economic policies, which are effective and efficient, besides being bold and far-sighted.
Speaking at a working luncheon at the renowned Brookings Institution on April 23, Economic Affairs Minister said, building economy from the foundations was tough task, but it was being shouldered efficiently.
In respect of the reforms' agenda, he said "we can make real difference; in fact, we have done very well in certain respects, while we are moving alright on others."
He said, 85 percent of the banking system was in the private sector. Pakistan had been able to further growth rate to 6 percent, which would be in the periphery of 8 percent in the next three years.
He also referred to the launching of the Eurobonds.
Of 9/11, he said, Pakistan lost a large number of trading orders, consequent to having become the frontline state against global terror.
Professor Stephen Cohen, addressing a gathering of Pakistani-Americans at the Embassy auditorium on April 24, commended Pakistan's economic performance and said, efforts were being made to attract more and more investments in the country.
Ambassador Ashraf Jehangir Qazi said Pakistan had been able to achieve a take off point because of the miracles done by the planners and capable team of the economic managers led by Shaukat Aziz.
He referred to the tributes, paid to Shaukat Aziz by US deputy Defence Secretary Paul Wolfowitz, who as chief guest at the Pakistan day function on March 23, at the Pakistan Embassy said that Aziz was doing marvellous.
On the occasion of his address to the JP Morgan seminar on April 25, US investors congratulated Pakistan over the issuance of the Euro Bonds, and lauded the significant economic progress made over the last four years.
During the visit, he held meetings with the deputy Defence Secretary Paul Wolfowitz; Praful Patel, WB vice president; attended G-24 meeting, met Ambassador Ashley Wills of USTR, met Congressman Jim Kolbe and Senator Ted Stevens, chairman, Senate Appropriation Committee.
He also held a meeting with John Snow, US Treasury Secretary; met WB president James D. Wolfensohn, Allan Larson, under secretary of State, Philip Merrill, chairman, EXIM Bank, Andrew Natsios, administrator USAID; attended IMFC meeting, and Development Committee meeting of the WB.
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