Treasury team headed by Mr Michael Kaplan Deputy Assistant Secretary US Department of Treasury called on Pakistan delegation headed by Finance Secretary Dr Waqar Masood Khan. Finance Secretary briefed US side about the 10th review of IMF program which was cleared by IMF Board without a waiver. Finance Secretary gave the overview of macroeconomic indicators with special mention of the improved revenue collection which has helped the government in bringing fiscal deficit down to 4.3% from 8.2% in 2013. He informed the Treasury team that the government was committed to continue with reform process and keep check on fiscal deficit without compromising on the development expenditure. He observed that due to improved investment climate the Foreign Direct Investment has gone up by 15% and while large scale manufacturing is showing a growth of 4.2% which is highest in last 5 years.
The Governor SBP apprised the Treasury team that the inflation is under 5% while interest rates are at 6% and both the indicators are lowest in last ten years. He said that due to improved investment climate the private sector lending had gone up by over 100% over last year. He said that with $21 billion of foreign exchange reserves SBP is prepared to meet the increased demand from private sector for capital investment.
Michael Kaplan, Deputy Assistant Secretary Treasury Department appreciated the performance of Pakistan economy during last 3 years. He commended the government on continuing with structural reforms and expressed hope that the government will continue to exercise fiscal discipline after the completion of IMF Program.
April 17, 2016