Our Washington Correspondent
Miftah Ismail, Adviser to the Prime Minister on Finance, Revenue and Economic Affairs:”I think with the new power plants coming with the help of China Pakistan Economic Corridor – with other economic activities coming into play next year I am confident to see growth,” he said in an interview with American Media at the International Monetary Fund (IMF) and World Bankspring meetings in Washington D.C. on Friday.
The Pakistan government is targeting a greater than 6% GDP growth next year. Although sceptics have pointed out this is unlikely due to widening deficits, Miftah defended the plan. He explained, Pakistan has 5.8% growth this year and last year was revised upward to 5.4%, Pakistan believes the projected target 6.25 % growth is realistic.
The Pakistan government is expected to launch the next fiscal year’s budget 2018 – 2019 in the coming weeks before the general elections.
Whilst in Washington D.C., Miftah,held a series of meetings with IMF, World Bank and US officials. The governments fiscal policies were discussed with the teams. Previously the IMF and World Bank have recommended the government revise its fiscal policies as they believe the Pakistani currency was overvalued.
The government has devalued the currency twice,since December 2018, both times at around 5%. Miftah defended this decision, “Given the exports were going down and imports were going up very import was going up way too fast – I thought the trade deficit was becoming very high.” However, Miftah said he did not anticipate any further devaluation following the election. He said,”In the month of march our exports were up 24% our exports were up year on year” he added,inflation has remained below 4% in Pakistan. Pakistan is raising $450 million through syndicated loans. Bonds were sold towards the end of last year;Miftah envisions selling Panda bonds in China later this year before returning to the international market.
Miftah, acknowledged that the current account deficit and financing gap were issues that need to be addressed. He said “they are speaking and arranging loans from commercial banks.”
In meeting’s with U.S. official matters discussed included Pakistan’s placement on “a grey list’ by the Financial Action Task Force (FATF), a watch list of the countries whom financial systems have strategic deficiencies in combating money laundering and terror financing.
Speaking about the placement in June 2018, Miftah said, “Pakistan would do whatever needs to be done to be removed from the grey list and work with the international community.” He added “Pakistan will not allow any financing or money laundering of terrorism on its territory.” Miftah, also met with the Afghan Finance Minister Eklil Ahmad Hakimi, the two officials agreed to form working groups to address the adverse impact of security on bilateral trade between the two countries. Last year Kabul postponed the Afghanistan-Pakistan Transit Trade Coordination Authority (APTTCA), a high-level forum established to facilitate the implementation of a revised transit treaty.
In November 2017, the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) urged the leadership of Pakistan to address the negative impact of disputes on bilateral trade between the two countries.
Published in Daily Times, April 22nd 2018.
