Accelerating growth: Pakistan to receive $1b in coming weeks, says Dar

The minister said that it is the first time Pakistan will complete the IMF Macro-economic Stabilisation Programme

KARACHI: Pakistan would receive $1 billion from international financial institutions (IFIs) in the coming weeks, said Finance Minister Ishaq Dar on Friday.

Speaking to bank presidents at the State Bank of Pakistan (SBP), Dar said it was time to accelerate the growth momentum of the economy after significant improvement in economic parameters recorded over the last three years.

He said foreign exchange reserves would further improve and he expected them to touch $23 billion by the end of the fiscal year.

The finance minister said that it is the first time Pakistan will complete the IMF Macro-economic Stabilisation Programme. “Despite several hurdles, it is the first time in the history of Pakistan that the country has completed maximum reforms under the programme,” he said.

While elaborating fiscal improvements, he stated that the budget deficit has improved to 4.3% from 8.8% three years ago without compromising on development budget. The process of fiscal consolidation continues to lower the deficit going forward, he said.

“As a consequence, government borrowing requirements from the banking system are reduced and creating space for the banks to lend to the private sector,” the finance minister said.

He urged banks to take advantage of this space and increase credit to the private sector, particularly to the small and medium enterprises (SME), microfinance and housing sectors. To promote mortgage financing in the country, Dar stressed the importance of having foreclosure laws, saying that without such laws housing finance could not be promoted.

Published in The Express Tribune, June 25^th, 2016.

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