Pakistan assures support for establishing Asia Infrastructure Bank

ISLAMABAD: Finance Minister Muhammad Ishaq Dar on Monday assured full support to the Chinese government for the establishment of Asia Infrastructure Bank. A statement issued by the Ministry of Finance said Ishaq Dar held a bilateral meeting with Chinese Finance Minister Lou Jiwei during the 47th Annual Meeting of the Board of Governors at Astana on Monday.

The minister also appreciated the proposal for its establishment as it is likely to contribute to the development of infrastructure needs of the region.The minister appreciated the Chinese contribution to the economic development of Pakistan and conveyed the best wishes from the prime minister of Pakistan to the Chinese leadership.

Appreciating the Chinese support for building the economic corridor from Kashgar to Gwadar, both sides agreed to work on an integrated plan for overcoming the difficulties likely to be encountered in the planning and implementation of the economic corridor.

Ishaq Dar assured full support for the initiative of establishing the economic corridor as it will not only reduce the transportation costs, but also result in the development of local regional economies through increased connectivity through enhanced levels of movement of people and goods.

In a meeting with a US delegation led by Marisa Lago, Assistant Secretary International Markets and Development, on the occasion of 47th annual meeting of Board of Governors of Asian Development Bank, Finance Minister Mohammad Ishaq Dar on Monday said that Pakistan was expecting the World Bank to consider Dassu Hydro Project and would appreciate the US support in this regard.

Dar said Pakistan was goingahead with Diamer Bhasha Dam Project which would serve the dual purpose of generating electricity and acting as a water reservoir for both agriculture and flood controls.

The finance minister briefed the US delegation about the structural reforms and stabilization measures undertaken by the present government since its coming into power in June 2013.He informed the delegation that through prudent macroeconomic management austerity measures resorting to external sources of funding and retiring domestic debt obligations the government had been successful in putting the economy on the stable growth trajectory.

The minister suggested the Asian Development Bank (ADB) to adopt innovative approaches for addressing the newly arising challenges through reviewing ADB’s processes, rewarding innovative approaches and by adopting result based lending modalities.

The minister represented Pakistan during the Governor Round Table Conference, in the 47th annual meeting of the ADB Board of Governors at Astana today, said a statement issued by the Ministry of Finance.The theme of the conference was to suggest a role for ADB in handling the challenges currently faced in the Asia and Pacific economies due to different levels of economic development.

Govt to spend $34 billion for key infrastructure development: Dar

 

ISLAMABAD: Federal Minister for Finance, Senator Mohammad Ishaq Dar on Tuesday said that the government would spend $34 billion in the next four years in various sectors of economy particularly for the expansion of motorways, power transmission lines and development of energy sector.
Talking to Minister of Finance of the Canadian Ontario Province, Charles Sousa, who called on him, Dar said that his government was determined to pursue very aggressive infrastructure development program in the country to help accelerate economic growth.

“The government is determined to pursue the policy of transparency, good governance and zero tolerance for corruption besides fulfilling its election manifesto by prioritising four ‘E sectors’ that include Education, Economy, Energy and Eradication of Extremism,” Dar said.

The finance minister also briefed Sousa about the introduction of 3G and 4G technologies in a transparent process, which would attract massive investments in the telecommunication sector. He expressed his determination to correct the existing energy mix in Pakistan as currently, 75 percent source of energy is furnace oil, due to which per unit cost has become exorbitantly high. Hence, the government intends to give priority to clean energy, he said.

Dar expressed voiced hope that the Canadian companies would invest in hydro projects as they have tremendous expertise in this field. He stated that the government has signed a 2,000MW nuclear power plant agreement with China and was negotiating for additional 3,000MW plant on BOT mechanism. While speaking about the security situation of the country, the Finance Minister underscored the need for giving dialogue a last chance.

The minister said that he will be presenting his second budget in June, 2014, adding although Pakistan’s GDP has been growing at three percent for the past few years, this year the growth is expected to be four percent. However, the target of 6% growth is likely to be achieved in the next few years owing to various economic reforms being undertaking by the present government, he added.

On the occasion, Sousa expressed the hope that by following robust and vigorous economic agenda, the government would certainly overcome economic difficulties, which would, in turn, pave the way for more foreign investments, both by expatriate Pakistanis and foreign companies. He stated that the better economic condition was the best way to give hope to the people, which would help reduce illiteracy and extremism.

Sousa appreciated Pakistan’s positive role in the post 9/11 war against terrorism and deplored criticism against Pakistan in this regard. He said that the Ontario government was pursuing a practical ‘energy mix’ policy adding the 50 percent source of energy was nuclear, followed by hydro and gas while the green energy constitutes only 6 percent.

Sousa stated that the Ontario government greatly admires Pakistani businessmen, entrepreneurs, doctors, engineers, accountants and other professionals, who have been making valuable contributions to the Canadian economy and society.

He said that he will be presenting his second budget as the Finance Minister and to boost the economy and employment the government is proposing to spend C$11.3 billion more than the previous year.

International investors urged to grab huge potential and opportunities in energy and infrastructure sectors

ISLAMABAD: Federal Minister for Finance, Senator Mohammad Ishaq Dar Friday urged international investors to grab huge potential and opportunities in Pakistan's energy and infrastructure sectors.

He was talking to Philip Barton, British High Commissioner to Pakistan accompanied by Richard Montgomery, Head of UK Department for International Development, Pakistan who called on the Minister here at the Finance Ministry.

The Minister informed the delegation that Pakistan's economy is performing much better as all the economic indicators are on the positive side.

The GDP is growing up and the rate of inflation is going down.

Dar said that during the last seven months of the current fiscal year there has been 17% growth in taxes collection whereas it was less than 3% last year.

"We are confident to meet our targets for the current fiscal year", he remarked.

He added that "we will be sticking to disciplinary mechanism on expenditure side and enhance our allocation for developmental activities and disbursements to poor people through social safety networks".

He emphasized that there is a great potential for trade expansion with the United Kingdom in the light of Prime Minister's vision for consistency in economic policies and creating an atmosphere where foreign investors can invest in energy, hydrocarbons and infrastructure projects.

The Minister also briefed the High Commissioner about his recent visit to Afghanistan and development projects including Torkham-Jalalabad Highway and Kidney Hospital, undertaken by Pakistan.

He said that these are the signature projects between Pakistan and Afghanistan which are close to our hearts.

He said that the visit went very well in general public of that brotherly country.

The Minister concluded that the best way the United Kingdom can help is to encourage the international investors to grab the huge potential and opportunities available in Pakistan in energy and infrastructure sectors.

The High Commissioner said that making Pakistan more prosperous is key to our relationship.

He said that we are very keen to work with Pakistan on enhancing our commercial and economic relations.

He said that the Pakistani Diaspora in United Kingdom is of a great value for us who consider Pakistan as their second home. He said that we are impressed with the transparency and merit oriented policies, the government is pursuing.

He added that in a democracy, fundamental policy of the government is to collect taxes and allocate resources for development.

He also appreciated Minister's visit to Jallalabad, despite security issues on the day when a terrorist act happened in Kunar province.

He expressed his Government's resolve to work with Pakistan in bringing peace and prosperity to the region.

Moreover, the High Commissioner added, that we are of firm belief that CASA-1000 and energy corridor between Pakistan- Afghanistan and Central Asian Republic States will promote regional trade and the United Kingdom is willing to help in these projects.

He also assured the Finance Minister that United Kingdom is looking forward to help Pakistan in meeting their economic problems and to bring in foreign investment.

Mr. Montgomery said that UK AID is working with the State Bank of Pakistan, Pakistan Poverty Alleviation Fund and other public and private banking sector for providing agricultural financing including micro-enterprise loans and savings services to the rural low income clients in Pakistan.

He said that the initiative will help spur innovative practices to increase financial services in the agriculture sector.