May 13, 2003	Tuesday	Rabi-ul-Awwal 10, 1424

Please Visit our Sponsor (Ads open in separate window)

ISLAMABAD, May 12: The International donor agencies and bilateral supporters have urged Pakistan to improve governance and ensure better law and order situation for achieving sustained economic growth.

“We have expressed our concerns on issues relating to governance and law and order required for efficient government,” said John Wall, the country director of World Bank for Pakistan and Afghanistan.

Speaking at a joint news conference with Economic Affairs Division Secretary Dr Waqar Masood Khan and Asian Development Bank’s senior representative in Pakistan Marshuk Ali Shah, Mr Wall said on Monday that political stability was essential for improving broad economic indicators in Pakistan.

He expressed the fear that in case of renewed tension with India things could be difficult for Pakistan and it was in the interest of both countries to give up hostilities.

“Since 1965 war, neither country fully recovered,” he observed.

In reply to a question, the World Bank official said the Pakistan Development Forum meeting started earlier in the day had been told that education sector reforms would be implemented to increase the literacy rate. He did not see any problem in increasing literacy rate in the NWFP due to the MMA government there.

“We don’t think religious education at Madressah is a threat to anyone,” he remarked.

Expressing concern over Pakistan’s debt problem, he said domestic debt was a more serious issue than the external debt. “Debt indicators are very high and still at the HIPC (highly indebted poor countries) level.

Yet, he pointed out, Pakistan was now in a position to achieve 6 per cent growth rate in coming years. “While we have our concerns over power sector reforms, we do appreciate the implementation of the banking sector reforms,” Mr Wall said.

The ADB representative said Pakistan was at the crossroads to achieve regional stability and improve economic management. He said the human resource development, health, education and devolution were the main issues which were discussed at the PDF meeting.

Asked whether donors were worried about the reform agenda after the political government took over, Mr Wall hoped that the reform process would not be reversed. “So far, we are satisfied to have received assurances from the new government regarding reform agenda”.

Mr Marshuk, too, hoped that the new government would continue to implement the reform agenda started three years ago.

Dr Waqar said Prime Minister Mir Zafarullah Khan Jamali would formally inaugurate the PDF meeting on Tuesday and President General Pervez Musharraf would preside over the concluding session on Wednesday.

The PDF meeting is being attended by about 150 delegates from international financial institutions, donors countries and agencies, and government officials.