World Bank expected to approve $700 million for Dasu, irrigation projects: Dar

Finance Minister says tax revenue has increased by 17% while exports have witnessed an increase of 6% this year.

Finance Minister Ishaq Dar said on Monday that the following discussions with the World Bank, the financial institution is likely to approve $700 million in May for the Dasu hydel project and irrigation projects in Sindh, Radio Pakistan reported.

Talking to media in Washington, Dar said major financial institutions now agree with Islamabad that Pakistan's GDP growth would surpass their earlier projections.

Dar said the country now has access to $1 billion for the current year under its International Development Association and the World Bank is likely to approve the funds at its meeting next month.

With World Bank support, Dar said Dasu Dam, Diamer-Bhasha Dam and 19 other flagship projects have been envisioned for the next four years.

Tax revenue up by 17%

Separately, in a meeting with British Secretary of State for International Development in World Bank Justine Greening in Washington DC, Dar said tax revenue has increased by 17% while exports have witnessed an increase of 6% this year with Standard Regulatory Orders yet to be eliminated.

Dar said that capital market transactions between $2-&2.5 billion have been planned by the end of September 2014 and it includes OGDC and PPL.

Meeting with financial rating agencies

In a meeting with financial rating agencies including Standard and Poor, Moody’s, the agencies hinted that if Pakistan continues to improve its economic performance, it is expected that Pakistan’s rating would be improved.

Dar informed the agencies that in the medium term, Pakistan’s GDP is expected to increase from 3.6% to 7% and the tax to GDP ratio is expected to improve from 8.5% to 13%.

He further said that the government aims to curb inflation to 8%.