World Bank's Country Director for Pakistan, John Wall said here late Monday that Pakistan had successfully laid the groundwork for a 'sustained growth and poverty reduction' in the country.
He was speaking at a reception hosted by the Pakistan Society in honour of Governor State Bank Dr Ishrat Hussain here which was attended by Pakistan's High Commissioner to Britain Dr Maleeha Lodhi, bankers and businessmen including Steve Chesan senior Portfolio Manager Moore Capital Management, Jeremy Thort Director Bankirxj Association and Iain Pickard Marsh Marsh Insurance, Chief Insurance Operating Officer.
John Wall praised President Musharraf's government for its success in restoring the investors' confidence and billed it a 'great success' adding there had been a tidal change in the past five years from the situation inherited by it.
"Improving investors confidence was one of the major goals of this Government that has been met with great success," said Wall and added there had been progressive rise in Pakistan's external credit ratings.
He said there had been rapid rise in imports of investment and intermediate goods that was pushing the import growth rate to 33percent or more.
Referring to the steps taken by the Government, Wall said GDP had grown to over 6 per cent and foreign exchange reserves grew from negligible to more than four months of imports. Domestic borrowing interest rates had fallen from 16 percent or more to less than 10 percent. Public debt had fallen from around 100 percent to about 60 percent. The official said that continuity of the policy during last five years had reduced trade protection and had improved the business environment while the low interest rates had resulted in an increase in both domestic and foreign investment.
He praised the privatisation policy of the Government and said the commercial banks were growing both their business and their profits with astounding results.
Wall said the deregulation of the telecom sector and sale of PTCL had produced an explosion of players; mobile phones, cable television, radio stations, Internet service providers and many others.
Sustaining GDP growth of above 6 percent per annum and reducing poverty from 35 percent to 13 percent in the next 10 years would bring about a social transformation that would throw Pakistan into a fit of modernisation, he added.
John Wall also praised Punjab's educational reforms saying it was getting good results in terms of dramatic enrolment by a comprehensive program of rehabilitation of schooling and providing better incentives.