ISLAMABAD: Finance Minister Senator Ishaq Dar on Saturday said that forex reserves have increased to $12 billion and will reach $15 billion by September 30.
He was talking to prominent UK fund managers, including Chief Executive Officer (CEO) London Stock Exchange Xavier Rolet, who called on the minister, says a statement of the Finance Ministry.
The minister apprised them that the country’s macro-economic indicators have shown steady improvement as a result of the stabilisation and structural reforms undertaken by the government.
He also informed the delegation that the capital market in Pakistan grew by over 40% since the government took over and apprised them that the country was open to business and offered attractive investment opportunities with high returns.
Dar said the response of international investors was overwhelming and the subscription was 14 times over the amount originally intended.
He mentioned that with the launch of the Euro bond Pakistan has returned to the international bond market after seven years of absence.
He said Pakistan’s recent dollar bond received bids totalling $7 billion, reflecting the strong demand for Pakistan’s sovereign paper.
The minister also informed that Pakistan will issue an Islamic bond denominated in dollars for Islamic banking institutions and funds.
He informed the group that after initiating home grown economic reforms with successful implementation, Pakistan’s standing in the international markets has improved considerably.
While talking about the energy crisis, the minister told the delegation that the government was launching various energy projects and taking necessary steps to add around 10,000 megawatts generation to the national grid which
will eliminate the energy shortfall in the next four years.
He said the government has already managed to clear the circular debt of Rs500 billion within 45 days of taking oath. He added that the World Bank has approved two concessionary loans to Pakistan after a period of five years and will provide $1 billion for energy and development reforms.
He said the government has secured the necessary financing for the construction of the Dasu Hydropower Project. The financing of the Diamer-Bhasha Dam is in progress and the government has already started acquisition of land from its own resources for this project.
The minister also highlighted the opportunities in the telecommunication sector and informed the group about the recent auction of 3G and 4G licences which has fetched over $1.1 billion recently in a transparent manner.
Speaking about the privatisation agenda of the government, Dar informed the delegation that financial advisers have already been appointed through due process for the disinvestment of shares of United Bank Limited, OGDCL and PPL through London as well as Pakistan’s stock exchanges.
On the occasion, the UK fund managers appreciated the positive steps taken by the Pakistani government to put the economy back on track.
Rolet informed the minister about the institutional appetite of British companies towards Pakistan after the phenomenal growth in its capital market.
While praising the reform initiatives of the present government, he said Pakistan’s economic success story is gaining momentum and now needs to be told in a right way to the right people. He mentioned the ongoing collaboration between the London and Karachi stock exchanges with praiseworthy results.
He added that the London Stock Exchange is looking at ways to maximise partnership opportunities with Pakistan’s corporate sector.
Rolet congratulated Dar on the impressive success of Pakistan’s Euro bond issue in the international market.
