Pak­istan fi­nance min­is­ter up­beat on re­mit­tances

Enterprise - - Contents -

It is es­sen­tial that devel­op­ment in­sti­tu­tions like the Is­lamic Devel­op­ment Bank (IDB) should not only pro­vide en­hanced fi­nan­cial flows but also ren­der the nec­es­sary pol­icy ad­vice to mem­ber coun­tries to en­sure pre­ven­tion of po­ten­tially desta­bi­liz­ing im­bal­ances in future, said Pak­istan Fi­nance Min­is­ter Sen­a­tor Ishaq Dar.

Ishaq Dar was ad­dress­ing in 39th meet­ing of f The IDB board of f gover­nors in Jed­dah.

The min­is­ter said that the role of the IDB be­comes ever more im­por­tant to move ahead and to help mem­ber coun­tries re­form their gover­nance struc­tures, re­move struc­tural dis­par­i­ties through growth and devel­op­ment in an eq­ui­table and sus­tain­able man­ner.

This also ne­ces­si­tates that the IDB man­age­ment must re­flect on con­tem­po­rary global economic re­al­i­ties if it has to re­main as effective into the future as it has proved in re­cent times, he added.

He ap­pre­ci­ated the IDB’s ef­forts in gen­er­ously sup­port­ing Pak­istan in its ef­forts to put the econ­omy on a high growth tra­jec­tory by bring­ing about nec­es­sary struc­tural changes for a sus­tained and in­clu­sive growth.

He re-af­firmed the gov­ern­ment’s re­solve to fur­ther strengthen its close co­op­er­a­tion with IDB and fel­low mem­ber coun­tries.

He said joint ef­forts by gov­ern­ments could go a long way in bring­ing about pros­per­ity and peace in the Mus­lim world.

The min­is­ter also said that Pak­istan’s gov­ern­ment was fo­cus­ing on economic and so­cial progress to strengthen the econ­omy and en­hance its in­clu­sive­ness.

He said Pak­istan has ex­pe­ri­enced a tri­umphant re­turn to democ­racy. The new gov­ern­ments at na­tional and sub-na­tional lev­els that took of­fice af­ter the gen­eral elec­tions is 2013 have gen­er­ated hope, ex­pectancy and economic ac­tiv­ity in the coun­try.

Ishaq Dar said that his gov­ern­ment had adopted strate­gies to over­come the coun­try’s macroe­co­nomic chal­lenges.

The in­cum­bent gov­ern­ment is now in its sec­ond year and has em­barked upon re­forms agenda in economic and fi­nan­cial sec­tor which in­cludes: (i) Re­struc­tur­ing of public sec­tor en­ter­prises (ii) power sec­tor re­forms (iii) debt man­age­ment strat­egy ( iv) fis­cal aus­ter­ity to re­duce fis­cal deficit ( v) tight mon­e­tary pol­icy to check in­fla­tion ( vi) build­ing for­eign ex­change re­serves to sta­bi­lize the ex­change rate (vii) pro­mot­ing ex­ports ( viii) in­cen­tiviz­ing home re­mit­tances ( ix) strength­en­ing so­cial safety nets to mit­i­gate im­pact of sta­bi­liza­tion mea­sures through prime min­is­ter’s youth loan (x) pro­mot­ing growth and rais­ing do­mes­tic rev­enues (xi) Ra­tion­a­lyz­ing sub­sidy regime to re­duce pres­sure on the bud­get and (xii) Tax ad­min­is­tra­tion and pol­icy re­form to mo­bi­lize do­mes­tic re­sources’.

He said Pak­istan’s econ­omy would grow by over 4 per­cent this year. At the same time, in­fla­tion will re­main in sin­gle dig­its.

Growth in both agri­cul­ture and in­dus­try has re­vived. Fis­cal per­for­mance is also im­prov­ing with the deficit brought down to be­low 6 per­cent from 8.8 per­cent when the gov­ern­ment took of­fice.

This has been achieved due both to aus­ter­ity in ex­pen­di­tures and an out­stand­ing rev­enue col­lec­tion per­for­mance which recorded an in­crease of 16.4 per­cent in the first eleven months of the fi­nan­cial year, said the min­is­ter.

“On the ex­ter­nal side, ex­ports have main­tained pos­i­tive growth while re­mit­tances have also reached a record high of $14.33 bil­lion in the first eleven months reg­is­ter­ing 12.39 per­cent growth. In May 2014, re­mit­tances ex­ceeded $1.4 bil­lion — once again a record high,” the min­is­ter added.

He said: “We are sure that in the wake of IDB’s vi­sion for 1440 Hijri, the bank will be­come a world-class devel­op­ment in­sti­tu­tion, in­spired by Is­lamic prin­ci­ples and pos­sessed with the ca­pac­ity to pos­i­tively trans­form the devel­op­ment sta­tus of the Mus­lim world. In its tran­si­tion to­ward 1440 Hijri vi­sion, the bank must op­er­ate on the Is­lamic no­tion of devel­op­ment that is much wider and is cen­tered on the com­pre­hen­sive devel­op­ment of mem­ber states and their pop­u­la­tion.”

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.