World shows confidence on Pakistan’s financial stability

ISLAMABAD: Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh on Tuesday said that the world’s leading financial institutions had given Pakistan their vote of confidence and acknowledged the improvement over the past five months in its economic indicators.

While talking in a press conference in Islamabad alongside Federal Minister of Economic Affairs Hammad Azhar, Federal Board of Revenue (FBR) Chairman Shabbar Zaidi, ” Sheikh said The World Bank president came and appreciated Pakistan’s performance and instructed that better ties with Pakistan be formed.”

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He said, the Asian Development Bank, the foremost entity with whom we are linked to economically right now, also recognised the improvement in the performance of Pakistan’s economy and declared a $3 billion increase in its programme.

“Similarly, IMF (International Monetary Fund), viewed as the world’s largest financial lender and whose fundamental task is to form an opinion regarding the various economies across the world.

The finance advisor said the IMF board was subsequently recommended to “immediately disburse the next installment of the aid package to Pakistan amounting to $500 million”.

He said the most important fact, for which the press conference had been called, was to discuss Moody’s rating for Pakistan which had moved from “negative” to “stable”.

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“This report has shown the world that the reforms brought about by Pakistan in its economy are being appreciated by the world’s leading financial institutions.”

Discussing how Pakistan’s economy is being viewed by “those who hold authority over the world’s capital”,

The finance advisor said that an unprecedented $1bn portfolio investment had been made.

So Pakistan’s exchange rate is now being viewed as stable and people foresee a good return on their investment.

Sheikh said that Foreign Direct Investment — investment made directly in the economy — had witnessed a 236 per cent increase compared to last year. As of October, this investment was $650m, he said.

Furthermore, he said that our local investors’ confidence can be assessed from the fact that our stock market had crossed 40,000 points.

The advisor also called attention to the fact that Bloomberg had announced that among the world’s stock markets.

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Pakistan’s stock market had performed the best in dollar terms over the past three months.

The finance advisor also said that the country had experienced a 16 per cent increase in tax revenues over the past five months and government expenditures were being tightly controlled.

“No supplementary grant is being given and neither is someone being allowed any needless expenditures.”he said

Sheikh said that the State Bank of Pakistan’s reserves had also not only remained stable, but had risen in the past few months.