WASHINGTON: Painting a rosy picture of Pakistan’s economy – “exports have risen by 30%” – Finance Minister Hafeez Sheikh, at the tail end of his official visit to the US capital, said Pakistan felt it did not need to take a loan, and would continue on its path of homegrown economic reforms despite the end of the IMF loan programme.
Pakistan has shown good economic performance, Sheikh said while addressing a press conference at the Pakistan Embassy in Washington. However, Value Added Tax (VAT) was not imposed because parliament opposed it, and the fiscal deficit target was not met due to the floods and the rise in oil prices. “Our thinking was why should we take further loans? Our economic situation, especially our balance of payments, was such that we can run our country in a good way.”
The IMF programme will end on September 30 this year. Additionally, a team from the IMF will visit Pakistan in November.
The finance minister told Pakistani journalists at the press conference that he had met with Deputy Secretary of State Tom Nides and USAID Director Raj Shah, where he had discussed economic cooperation. He added that there had been some progress on creating an enterprise fund so that US companies could invest in Pakistan. Sheikh said he desired increased market access and decreasing tariff rates in the global market for Pakistani products, adding that British Prime Minister David Cameron and German Chancellor Angela Merkel had been very cooperative in this regard for access to the European Union’s markets.
In response to a question on US assistance to Pakistan, Sheikh said Pakistan had received $1 billion last year from the United States, of which half was from the Kerry Lugar Berman bill funds.
While discussing his meetings with World Bank officials, Sheikh said the bank had agreed to give $300 million over the next three years to the Higher Education Commission. Additionally, the International Finance Corporation, a member of the World Bank group, had decided to invest $150 million in small to medium enterprises in Pakistan.
Published in The Express Tribune, September 28th, 2011.
COMMENTS (24)
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@Thomas:
That is a very narrow minded and counterproductive views to have. India CAN benefit hugely by trading with Pakistan where it makes good economic sense to do so!
I thought the Higher Education Commission was being devolved?
With over 50% of the budget towards military, how can you grow?
Do not get your hopes up guys. Economists are not always good Security Analysts.
Due to escalating tentions and continued Pakistani support to the Haqqanis, US will probably impose covert sanctions on Pakistan. US will only stop short of labeling Pakistan "A Terrorist Supporting Nation".
This guy didn't mention where did Pakistan export to! I bet its the US. What if tomorrow US comes and says "You cannot export to our Country, unless you stop the export of Terrorists".
Pakistani economy is in a bad shape. Just wait a few more months, when things will start unravelling.
@Grace: ,
I agree with you. India should never trade with pakistan. India is doing just fine without, India don't need to trade with pakistan.
Your industries need gas and power to function:-------provide them Your industrialist need peace and security to invest in industry:- --- ensure it
The prospect of trade is growing dimmer after Pakistan has alienated almost the entire world in a quest for a strategic foothold in the region. The only nation prepared to "trade" with Pakistan is China and we all know what that means - buy more stuff from China. The dragon does not buy anything except raw materials from other nations. Pakistan should turn to its Eastern neighbors for salvation and forget this "strategic" stuff. Pakistan is not too good at it.
The minister said that Pakistan was seeking a chance to be allowed to compete with the rest of the world
"Seeking a chance to allowed"
WHO IS STOPPING YOU TO COMPETE ?
You are competing in one area only and that is Law intensity warfare, there is another word for that But editor will cut my post ,If i used that
Its amusing...a country with load shedding of 12 hours in urban and 22 hours in rural areas wants to participate in international trade.
Any way Hon'ble Finance Minister has declared that Pakistan does not want any aid....and will also not be getting any....for flood relief or for its Military.
"Pakistan doesn’t need to trade with India until it renounces state terror in Kashmir"
@ grace : for your kind information, currently your commerce minster along with 80 business delegate are touring india in mumbai and delhi, asking for trade concession and some import tax cuts on certain products. if you want i can "GRACEFULLY" convey your message, and provide them free return ticket back to pakistan.
"As for the West, they owe Pakistan big time for fighting to end Soviet rule in Afghanistan and end the Cold War"
@ grace : again, you are speaking as if you are doing favour to the world. damm you ! what you do is for the sake and future of your nation. why d hell pakistanis dont understand this simple thing ?
Who is restricting PAK to trade and who is preventing PAK to compete in global market?
It is only Pakistan that is erecting her own barriers by seeking special privileges at the expense of other nations. Why should bangladesh or india or china or Thailand or morocco textile merchants should sacrifice their hard work for PAK, if PAK does not know how to produce them in cost effective manner?
Provide uninterrupted electricity and gas to the PAK industry and PAK will compete automatically. If PAK can produce armaments cheaply, why can't she produce value added trade goods similarly.
Send the mangoes to US for irradiation, don't give excuse that it is not cost effective. Indian mangoes get the same treatment. They are not complaining of barriers.
Saray jahan say accha Yeh Chinese-stan hamara, hamara saray jahan say achha
This mantra is as old as the hills. Yet everything we do from a policy perspective discriminates AGAINST exports! In other words, there is an anti-export BIAS in the trade regime. This is not a fanciful idea. The bias can be calculated.
@Bubble: I agree. Leave Pakistan alone
This is how MBA graduates beg in international market... US, Canada and Europe have offered us much greater market access, lowered trade barriers and favored our trade than many poorer nations in last ten years. 90% of these agreements are not published by our Govt. But our major failure highlights that we have nothing of value to sell to these countries. We are so busy buying military toys, and maintaining strategic assets to use against neighbors, that our industry has crippled and left us incompetent internationally. Who will trade with such a violent country? What product can we sell cheaper or better quality in international market than bigger players like China or India?
To all of the "undercover indians" GET A LIFE.
Dont you have anything better to do than to poke your nose in the affairs of my country.
If Pakistan wishes to see an increase in its exports of goods and services it should recognize the fact that this cannot include nuclear technology and terrorism. Wake up Mr. Minister.
Who is stopping Pakistan from doing trade with other countries? In this globalized world Pakistan can sign Free-Trade-Agreement with any other country. Pakistan neither needs blessings from a superpower nor it needs an all-weather friendship for doing trade.
Pakistan doesn't need to trade with India until it renounces state terror in Kashmir. Pakistan has a world of possibility in Central Asia and the Middle East. As for the West, they owe Pakistan big time for fighting to end Soviet rule in Afghanistan and end the Cold War. They should offer debt forgiveness to Pakistan as a small measure of the debt that they owe Pakistan.
This guy has the same talking point everyday.
No one does trade with the enemies. Pakistan should either set its priorities right, and decide whether it wants to be integrated and associated with the modern world, or continues to partner with the people still living in the middle ages.
Without this, the civilized world says to Pakistan, NO BUT THANK YOU.
Then like other countries, Pakistan should not use terrorism as tool for pursing foreign policy.
Besides what matters is that Pakistan gets a better deal (whatever that may be) as compared to India!!
if you create genuine VALUE, even your enemies will want to trade with you