January 9, 2003	Thursday	Ziqa’ad 5, 1423

KARACHI, Jan 8: Pakistan’s central bank said on Wednesday the country was likely to hit six per cent economic growth by the financial year 2004-05.

“We are moving toward the trajectory growth path of six per cent slowly and gradually,” Dr Ishrat Husain, governor of the State Bank of Pakistan, told Reuters in an interview.

Pakistan aims to achieve 4.5 or 4.6 per cent economic growth in fiscal 2002-03, while for the next fiscal year it hoped to exceed five per cent growth.

Dr Ishrat said the new civilian government should remain committed to the economic reforms initiated three years ago by the military-led government.

“The government should keep an eye on fiscal discipline, fiscal deficit to avoid falling in the debt trap once again,” he said and added the central bank would ensure stability in exchange rates.

“We will continue to mop up when there is an excess dollar supply and to inject when there is a shortage,” he said. “The central bank only comes in for stability of the exchange rate...we don’t like to have volatility, where the exporters cannot plan.”

He also said the country was building strategic oil and food reserves ahead of a possible war in Iraq.—Reuters