Amid growing international confidence in Islamabad's economic direction, foreign exchange reserves have risen to $17.67 billion and are expected to hit a historic high this year, Finance Minister Mohammad Ishaq Dar said. Currently, the State Bank of Pakistan holds $12 billion, while private banks have the rest of the total reserves.
"Our next target is to cross the past highest level of $18.29 billion in reserves this year "we have not had the luxury of a front-loading IMF facility as was the case when that level was achieved" but we have built up reserves on the basis of a range of policy measures and macroeconomic stability," Senator Dar told Washington-based Pakistani journalists.
He was flanked by Pakistan's ambassador to the US Jalil Abbas Jilani and Finance Secretary Dr Waqar Masood Khan. Parliamentary Secretary for Finance Rana M Afzal, Governor State Bank Ashraf Mahmood Wathra and Secretary Revenue were also part of the high-level Pakistani delegation that attended the Spring 2015 IMF-World Bank meetings.
The finance minister was speaking at the end of a hectic three-day visit to Washington, during which he had around three dozens meetings including with the IMF and World Bank leaders and top US Treasury, State Department, USAID, OPIC, US-Pakistan Business Council officials and investors.
Senator Dar also revealed that the seventh review of Pakistan's economic performance under the IMF programme would take place from May 1 to 9 in Dubai.
Dar cited a series of macroeconomic indicators including GDP growth, low inflation, successful return of the country to the international bond, Sukuk and equity markets, which, together with unprecedented completion of six levels of home-grown reforms with the IMF have tremendously enhanced world financial institutions' confidence in Pakistan's economic prospects.
Regarding Chinese President Xi Jinping's visit to Pakistan, Senator Dar said the two countries would benefit enormously from the economic co-operation, which will see Beijing investing billions of dollars in infrastructure projects with the involvement of the private sector. He said the motorway project would connect Peshawar with Karachi. The finance minister also had a meeting with his Chinese counterpart on the sidelines of the Spring gathering. Responding to a question, the finance minister said Pakistan has a clear-cut position on territorial integrity of Saudi Arabia and defence of the Holy Mosques as contained in the Parliamentary resolution on the question of Yemen war. "Pakistan will stand shoulder to shoulder with Saudi Arabia in the event of a threat to its territorial integrity."
Dar said the resolution was misunderstood by some in the Arab world and saw no negative repercussions on account of this for Pakistani expatriates, saying the highly talented Pakistani human resource has contributed critically to the development of the Gulf region.
"There should have been no confusion about Pakistan's position--we have condemned the Houthis and support restoration of the elected government of President Hadi --Pakistan, along with Turkey, has a reconciliatory role and wants to bring them to negotiating table."
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