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Pakistan pursuing rational economic policies: PM

June 13, 2014

Prime Minister Muhammad Nawaz Sharif Thursday said rational economic policies had developed the confidence of foreign donor agencies in Pakistan.

"Our vision of making Pakistan a self-sustaining and self-sufficient economy will soon be realized," said the Prime Minister while appreciating efforts of Finance Minister and Ministry of Finance in its efforts to realize the $ 700 million Assistance for Pakistan by World Bank.

The World Bank in its meeting on 11th May had approved a total of $ 700 million worth assistance for Pakistan's two projects - 4500 MW Dasu Hydropower Project (US $ 600 million) and Sindh Water Irrigation Project (US $ 100 million).

A statement from the PM House quoted the Prime Minister as saying that the confidence of World Bank was also evident from the already approved $ 1 billion for budgetary support to Pakistan.

"The World Bank's support and commitment with Pakistan reflects their confidence in the leadership and vision of our government," he said.

The Prime Minister said the Dasu Hydropower Project would not only improve the water storage and irrigation system of Pakistan, but also provide 4500 MW power to the power starved economy.

He said the country had embarked upon a journey of development and its economic policies had shown positive results.

"Our economic policies have resulted in raising the foreign investors' interest in Pakistan and in last one year the foreign investment has gained substantial increase," the Prime Minister said.

"We will fulfill the promises made with the nation to make Pakistan self-sufficient in energy and water resources."

He said the Government of Pakistan was working with the USAID to organize an international investors' conference for Diamer Bhasha Dam in September this year in Washington DC.

The Prime Minister said the government had initiated several energy projects to overcome energy shortage in the country and mentioned the short and long term policies in this respect.

He said the short term projects would be completed in next 4-5 years while the completion time of long term projects was 10-12 years.

"We have not only planning to overcome the shortage, but also planning to meet the growing need for the future," he said.

The Prime Minister also referred to the World Bank report on "global economy prospects", which has termed Pakistan's economy as stabilized and reported that after several years of decline, the investment rate was projected to rise. He said the report had given unbiased study of Pakistan's economy and had discarded the impression of few, who rejected the government's figures of growth.

The World Bank loans are purely concessionary and cheap in nature with repayment schedule spanning over a period of 25 years, including five years grace period, with no interest and a nominal administrative charges of 2% per annum.

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Source: Balochistan Times (Pakistan)

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