ISLAMABAD: Country Director, the World Bank, Rachid Benmessaoud, met Federal Minister for Finance Senator Ishaq Dar here on Wednesday to discuss important matters regarding future development roadmap of the country. Benmessoud formally informed on behalf of the WB Management that Pakistan has again become eligible for availing the International Bank for Reconstruction and Development (IBRD) funding after a lapse of three years.
IBRD funding facility was suspended in March 2012, because at that time Pakistan could not fulfil the required conditions regarding macro-economic stability. As Pakistan is now maintaining foreign exchange reserves of more than 2.5 months of projected imports and has satisfied other criteria of WB under the Country Partnership strategy (CPS), it will now be able to avail $2bn worth of IBRD funding during the four year period of Fiscal Years 2015-2019.
Benmessoud appreciated the continuous improvement in the macro-economic indicators including significant growth in FBR revenue as well as GDP, low inflation, cut in budget deficit and improving foreign exchange reserve position, which has played a pivotal role in restoration of this facility.
When the government assumed responsibilities, the State Bank of Pakistan reserves were very low and after making repayments of foreign loans obtained by the previous governments, the SBP reserves touched $2.82 billion in February 2014. But corrective measures taken by the country's leadership brought the economy back on track and on February 11, 2015 the reserves touched $16 billion including over $11 billion with SBP.
While talking to Benmessaoud and thanking him for this positive news, the Finance Minister said: "Our team has set a new target and that is to take our foreign exchange reserves to $17 billion and with the help of the Almighty InshAllah we shall make every possible effort to achieve this target".
Benmessaoud appreciated the efforts of the present government for uplift of the economy and felicitated the Finance Minister for his untiring efforts aimed at improving the economy and building a positive image of the country. He said, "The WB team was happy to cooperate with Pakistan and its leadership keeping in sight their commitment to development."
The current IBRD facility will be utilised for priority infrastructure projects, said the Finance Minister. This facility will help in realising the vision of the Prime Minister for the economic development of the country. He thanked Benmessaoud for his co-operation with Pakistan in its efforts for economic development. The Prime Minister has congratulated the Finance Minister on this achievement and appreciated his hard work and commitment.-PR