November 4, 2001	Sunday	Shaba’an 17, 1422

KARACHI, Nov 3: The State Bank of Pakistan Governor Dr Ishrat Hussain on Saturday said that Pakistan was negotiating to re-profile its foreign loans with the US and other countries.

Speaking at a seminar on “lifting of sanctions on Pakistan—challenges and prospects of our economy” organized by the Economics Society of the Bahria Institute of Management and Computer Sciences, Karachi, the SBP Governor explained that re- profiling of debt was a better deal than the rescheduling of loans.

In re-profiling, he pointed out, the repayment capability of the borrower was taken into consideration. Once granted, the borrower country, is allowed to continue to make the suitable re-payment for a longer period on yearly basis.

He asserted that re-profiling was more helpful for the borrower as compared to rescheduling in which the repayment is deferred to a future date, which ultimately inflates the future amount.

The governor announced launching of an SBP scholarship scheme for the meritorious students for higher studies.

Sirajuddin Aziz, Executive Incharge, Treasury and International Banking Division, Bank Alfalah, in his presentation said that after lifting of sanctions the US was expected to cast vote in favour of Pakistan in the institutions like International Monetary Fund, the World Bank, the International Finance Corporation and the Asian Development Bank.

The private sector in Pakistan, he said, was now in much more comfortable position to get financial assistance after being assured of getting cover from EXIM bank and OPIC of the US.

A.B. Shahid, Managing Director and Chief Executive, Pak Gulf Leasing Company said that sanctions were not the only hurdle in Pakistan’s economy. Pakistan economy, he said, was impacted by the ISO certificate requirements also.

He termed the requirements of installing environment-friendly production processes, elimination of child labour had impacted export industries, and would continue to affect Pakistan’s economy.