Finance Minister Ishaq Dar Friday said that economic parameters have recorded significant improvement over the last three years and it is time to accelerate the growth momentum of economy. He was addressing the Presidents of banks in a meeting held at State Bank of Pakistan. He highlighted that foreign exchange reserves position has improved significantly over last three years and appreciated the role of SBP and banks in this improvement.
He further mentioned that reserves will improve further and by the end of the current fiscal year may touch USD 23 billion mark. "We are expecting another US $1 billion from IFIs in coming week," he said. Appreciating the contribution of home remittances, the minister lauded the role of banks. He disclosed that with respect to the reimbursement of TT charges, the government will release Rs 3 billion from the budgeted allocation of 2015-16.
The Finance Minister said that it is the first time Pakistan will complete IMF macroeconomic stabilisation program. Despite several hurdles it is the first time in the history of Pakistan that the country has completed maximum reforms under the program. He said Pakistan is not intending to go to another IMF program. While elaborating fiscal improvement, he stated that the budget deficit has improved to 4.3 percent from 8.8 percent three years ago without compromising on development budget. The process of fiscal consolidation continues to lower the deficit going forward. "As a consequence, the government''s borrowing requirements from the banking system have reduced and therefore creating space for banks to lend to the private sector, the Finance Minister remarked.
He urged banks to take advantage of this space and increase credit to private sector particularly to the SME and microfinance sectors as well as to the housing sector. To promote mortgage financing in the country, he stressed importance of having foreclosure law and said that without such laws housing finance could not be promoted.
He lauded SBP efforts in the financial sector. He said monetary policy has played a great role in achieving economic turnaround. Further, he said SBP efforts with regard to financial inclusion have earned international recognition. Earlier, the Governor SBP, Ashraf Mahmood Wathra welcomed the Finance Minister. "We are grateful that you took time out of your busy schedule, as we all know that Dar sahib has been shouldering various other responsibilities besides his own portfolio in recent times.