SLAMABAD: World Bank Vice President for the South Asia Region Annette Dixon has called on Federal Finance Minister Ishaq Dar and discussed economic issues with him.
Annette Dixon said that World Bank would continue to support Pakistan in its efforts for economic development. “We share with you the common vision of alleviating and eliminating poverty, and bringing prosperity to Pakistan,” she added.
Dixon pledged to help out the internally displaced persons (IDPs) and ensure their resettlement. Dar said the government was committed to help restore the lives and livelihoods of IDPs affected by the ongoing crisis in Fata which caused more than 300,000 displaced households.
The return of Fata IDPs had already started from 15th March, 2015 and in the first phase 113,000 families would return to their homes.“We appreciate the World Bank for joining hands with the government and offering financial support of $75million for Fata TDPs. Both the Operation Zarb-e-Azb and the rehabilitation of TDPs would likely require 1.7 billion dollars.”
Annette Dixon took up the issue of increasing the tax to GDP ratio of Pakistan. Dar remarked that there existed a strong political will to enhance revenues and, therefore, the government had initiated key administrative and policy measures to improve Tax-GDP ratio which included rationalization of concessionary regime (SROs), tariff reforms, broadening of tax base, tax payers facilitation and a number of other steps.
The visiting senior WB official had in-depth exchange of views with the minister on progress regarding World Bank-funded projects and appreciated the headway made in different spheres, particularly lauding the macro-economic management by the present government which had helped realize economic stability in the country.
“We share with you the common vision of alleviating and eliminating poverty, and bringing prosperity to Pakistan. We would continue our support to Pakistan in its efforts for economic development, she remarked.
Giving an overview of the sate of economy, the finance minister said Pakistan had successfully completed six reviews with the IMF, made a successful return to the world financial market through Euro bonds, launched Sukuk and achieved the criteria to be eligible for IBRD economic packages.
All the important economic indicators were positive, he said and added that it was all the result of strict economic reforms agenda that the government had followed ever since assuming responsibilities back in 2013.
The finance minister pointed out that international rating agencies had accorded stable rating to Pakistan’s economy and Moody’s had recently enhanced its rating for Pakistan from stable to positive.
The minister added that the government had set 4Es – Energy, Economy, eliminating Extremism and Education – as its priorities and the World Bank’s Country Partnership Strategy (CPS 2015-19) was aligned with the government’s economic development priorities i.e. transforming the energy sector; supporting private sector development; reaching out to the vulnerable/poor and leveraging regional markets.
Dar appreciated the World Bank’s support in energy sector, especially mentioning Dasu Hydropower Project and CASA-1000. He also acknowledged the bank’s support of US$1 billion for Development Policy Credits (DPCs-I) for Fiscally Sustainable and Inclusive Growth, and Power Sector Reform. He added that the government had met all the prior actions for the Growth DPC-II, and had made significant progress on various prior actions agreed to in Power DPC-II; and remaining reform actions would soon be completed.The minister was informed that for the next tranche of DPCs on growth and power the Operations Committee meeting would be held on 10th April.
