Economic roadmap endears government to IFC, others: facility for oil import expected

A delegation representing IFC and other financial institutions including Citibank and Habib Bank Limited called on Minister of Finance, Revenue, Economic Affairs, Statistics and Privatisation, Muhammad Ishaq Dar at Pakistan High Commission in London. Pakistan High Commissioner to UK Wajid Shamsul Hasan was also present. The Finance Minister highlighted his government's macroeconomic roadmap and the ways through which economic challenges are being handled, according to a message received here from London on Friday.
The two sides agreed in principle after detailed discussions, subject to due process, regarding the IFC-led consortium's revolving trade finance facility of $500 million for import of oil into Pakistan. With IFC to be the main contributor, the said facility will be enhanced gradually to US $1 billion. The Finance Minister appreciated that this is a rare instance that IFC has agreed to become part of a trade facility for public sector. This reflects the confidence that IFC and other consortium members have in the present Government's economic roadmap for bringing macro-economic stability in Pakistan. After hard discussions, the two sides agreed that the said facility will be subject to the cost of about 4 percent above Libor, which is probably the lowest for such a facility available in the market.
The Finance Minister also shared with the visiting institutional representatives details of the privatisation initiatives regarding 31 public sector entities which are currently being perused by Government of Pakistan. He indicated that the government choice route is a strategic partnership with the private sector investors for transforming these state owned enterprises from huge loss making scenario into profitable ones.
The Finance Minister further emphasised that in the entire process, rights of employees of SOE's will be fully protected. The Finance Minister was also briefed regarding the e-government initiatives taken by the Citi Bank especially in the national saving organisations. The Minister, while appreciating their efforts, assured the Bank about the Government support in order to facilitate the common man savings holders and especially the pensioners through such reforms.