Government to focus on production, infrastructure growth after achieving economic stability: Hammad

Federal Minister for Economic Affairs, Muhammad Hammad Azhar on Thursday stated that after achieving economic stability, the government's priority is growth of production sectors and infrastructure.

Speaking at Pakistan Business Forum workshop, organised by Asian Infrastructure Investment Bank (AIIB), the minister said that Pakistan's economy is out of economic crisis and quantum of exports is increasing in the current fiscal year as compared to the last fiscal year.

He further said that Pakistan is an emerging economic country whose majority of the population is based on youth. The AIIB can fulfil Pakistan's needs with respect to infrastructure and social sector.

He further said the Prime Minister was presented a portfolio of development projects and he expressed satisfaction. The PM is taking personal interest and a monitoring cell for development projects is working directly under him. He further said that Pakistan needs huge infrastructural development investment for sustainable development in the country.

Pakistan is the 6th largest populated country in the world with 200 million people and it has huge chunk of youth and untapped resources, said the minister.

He said that the country wants to bridge the gap between infrastructure and social sector development to achieve the government's economic agenda. He said that AIIB is supporting different projects of roads, energy, sanitation and mass transit.

He said AIIB has approved different projects amounting to $511.81 million for the infrastructural development in Pakistan, which will contribute a lot in national economy.

The government is mainly focusing on remote areas for providing equal development opportunities to all regions for sustainable growth in the country.

He said because of the prudent economic policies of the current government, "We have achieved the agenda of economic stability and are going for higher growth."

Hammad said during the last few months, Pakistan has achieved the surplus shown in CoD of the country. He said the tax revenues have also increased by 15 percent as compared to the same months of previous year.

He said number of tax return filers has also increased as compared to past history. He said Pakistan Stock Exchange has also shown bullish trends. He said AIIB has approved $511.81 million for four projects for the infrastructural development in Pakistan.

According to a statement uploaded on the Bank's website, the AIIB has committed US$112 million to improve transport and water services in Karachi. Residents across Karachi will have greater access to basic services following recent investments by the Asian Infrastructure Investment Bank (AIIB) to improve the city's transport and water services.

AIIB's President Jin Liqun approved a $71.81 million loan for a project that will provide an efficient and sustainable public transport system in Pakistan's economic hub. The Karachi Bus Rapid Transit (BRT) project includes the construction of the Karachi Red Line BRT Corridor and associated facilities, as well as the establishment of BRT operations. An estimated 1.5 million people living within a one-kilometre radius from the BRT corridor and off-corridor services will directly benefit once the project is completed. The city's air quality is also expected to improve, and greenhouse gas emissions will reduce as passengers switch from private cars and motorcycles to the new BRT system.

AIIB's latest investment in the mega city comes on the heels of a US$40 million loan approved by its Board of Directors in October to improve Karachi's water services, bringing the Bank's overall financial commitment to Pakistan to US$512 million.

This loan is geared toward upgrading the Karachi Water and Sewerage Board's (KWSB) efficiency and sustainability. Once fully operational, an estimated two million residents will benefit from better customer service.

KWSB provides Karachi 650 million gallons of water per day, only about half of the city's total needs. Due to inadequate water availability, rationing and leakages are widespread.

Key components of the Karachi Water and Sewerage Services Improvement Project include strengthening KWSB's technical and managerial capacity and operational performance, rehabilitating existing infrastructure and supporting contract management.

The project will pay special attention to ensure that women and children get benefit from the improved services.

Since AIIB began operations in 2016, four projects spanning key economic sectors have been approved in Pakistan. The AIIB has also provided a Special Fund grant of US$0.5 million for the preparation of the Lahore Water and Wastewater Management project.

"The AIIB has a steadily growing investment portfolio in Pakistan, which is closely aligned with the country's national development priorities," said AIIB Vice President and Chief Administration Officer Luky Wuryanto. "The Bank will continue to strengthen efforts to improve institutions, services and infrastructure, which will certainly have a positive impact on economic growth and people's livelihoods."

Pakistan is a founding member of AIIB. Since AIIB started its operations in 2016, two projects have been approved in Pakistan totalling US$400 million; Tarbela Hydropower Extension Project (US$300 million) and National Motorway M-4 Project (US$100 million).

At this stage, four projects are in the pipeline at various stages of development; Karachi Water and Sewerage Services Improvement Project (US$40 million), Karachi Bus Rapid Transit Project (US$100 million), Lahore Water and Wastewater Management Project (US$400 million), and Rawalpindi Ring Road Project (US$402 million).