ISLAMABAD, Nov 26: Minister for Finance Shaukat Aziz on Monday said that there was no delay in IMF’s poverty reduction and growth facility programme, and that it was on track.

Speaking at an Iftar-dinner hosted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here on Monday, Aziz said Pakistan had impressed upon the developed and donor countries that Pakistan was affected by the September 11 incident as its exports have been reduced and investment was less.

He said Pakistan had covered the financial gap till June 2002. A number of countries and multilateral institutions had given their indications that they would extend more aid to Pakistan, which would go to social sector programmes.

He said various post-September 11 policies adopted by the government were in national interest and in line with Pakistan’s priorities.

He said as a result of the policies adopted by the government the microeconomic indicators were positive, the fiscal deficit has been reduced, inflation was under control and foreign exchange reserve has increased to 4.35 billion dollars.

The country for the first time successfully completed the IMF programme. He said there were no strings and restrictions in assistance from donors as they had full faith in the present government.

The finance minister said during negotiations with donors countries Pakistan demanded one time fiscal support, lifting of sanctions and new aid, market access and debt relief.

Regarding debt relief, Aziz said, this would be finalized in the next two months and in such a way that “our debt position will improve and become more sustainable”. Pakistan will get major debt relief and relief in debt burden. He said in the short term “we are facing difficulties but in the medium and long term there will be better conditions.” He said some countries had opened up their export credit schemes for Pakistan.

Aziz said the government was working hard to reduce interest rates of the banking sector, which would provide more space to the business sector. He said the president would soon be meeting with the members of the private sector. The government was working to reduce the war risk insurance cost.

The finance minister said the private sector and chambers had a major responsibility to take up the challenge and face it fair and square and help build a stronger and better Pakistan for a great future of coming generations.

“We must not get panicky from temporary difficulties and face them with courage and determination,” he said.

President of the Federation of Chambers of Commerce and Industry Iftikhar Ali Malik in his address of welcome requested for the formation of a committee of senior government officials and businessmen to sort out the problems of the business community. He assured that the businessmen would try their best to increase exports following encouraging steps taken by the government and provision of increased market access by a number of developed countries.