28 January 2004	Wednesday	05 Zilhaj 1424

WASHINGTON, Jan 27: The International Monetary Fund (IMF) has lauded the performance of Pakistan's reforms package, and attainment of positive macroeconomic indicators.

State Bank Governor Dr Ishrat Hussain, who earlier on Monday held meetings with the IMF, told APP. He said he held a detailed meeting with IMF managing director during which Pakistan's economic and fiscal policies came up under discussion.

The IMF said at the moment there was no issue relating to Pakistan was left with the Fund. "They are completely satisfied with the progress Pakistan has achieved during the last three to four years," Dr Hussain added.

About the spring meetings, he said those are routine annual meetings in which Pakistan delegation would participate. The IMF and the World Bank Group meetings would be held on April 24 and 25 in Washington.

WISE POLICY: Meanwhile, responding to a question, after having delivered an address on 'state of Pakistan's economy at the Pakistan embassy, the State Bank governor said the economic policy of Pakistan was performing quite well and had started giving dividends, much before Sept 11, 2001.

It was wrong not to give credit to the wise and befitting economic policy, and to describe that it was in the wake of the tragic event of 9/11 that Pakistan was doled out favours and its economy started to pick up, he said.

Ambassador Ashraf Jehangir Qazi, officials of the IMF, WB, NGOs, academicians and diplomats, including former US ambassador to Pakistan Robert Oakley, were present.

In this behalf, Dr Ishrat cited the only difference of lifting of sanctions in December 1999, effected earlier in the wake of detonation of nuclear device.By June 2001, he said Pakistan's foreign exchange reserves had increased by 3.2 billion dollars, and Pakistan was able to reduce fiscal deficits, attain increase in revenues and was trying to pay off expensive debts. And much before Sept 11, 2001, three-year PRGF had been negotiated with IMF; and all conditionalities of the IMF and the World Bank entered earlier by previous governments were being met.

On the contrary, he said in the wake of Sept 11, Pakistan's exports were adversely affected to the figure of one billion dollars, due to cancellation of previously furnished export orders, the original export target was 10 billion dollars, but Pakistan could barely attain the figure of nine billion dollars, adding: "We suffered a lot."

He said while making a statement, it was vital to sift facts and differentiate between myths, fiction and facts - "sooner we do it, the better."To a question, he said the money supply was under stiff control while inflation remained low.

Responding to a question on Saarc trade, he said with peace and stability, both Pakistan and India, and the rest of the members of the South Asian group was going to benefit. The Safta agreement would have a larger market for Pakistani producers.

Pakistan, he said, was much ahead in trade liberalization, our maximum tariff rate is 25 per cent and on average comes to 16 per cent as far as trade liberalization is concerned. Pakistan's textile industry, he said had a definitive edge over its neighbours in South Asia.

Pakistan he said was not only self-sufficient in agricultural produce but was exporting foodgrains. There is no restriction on import/export of cotton, wheat and rice.

The canal system of Sindh and Punjab was being revamped at a cost of Rs90 million; while various communication projects were in hand in Balochistan, including Gwadur seaport, coastal highway; and agriculture, higher education and S&T were being attached due priority. For S&T, the allocation used to be Rs400 million which now stood at Rs70 billion, per annum.

To a question, he said even Korea and Japan had to open up their economy, so Pakistan and India would have to do likewise. On investments, he said as stability is achieved and economy continues to perform well, more foreign investments would get attracted.

"Domestically, the stress now is on value-added products. The trend is not to go for sell of cotton, but logical phenomenon was to move from yarn to spinning to weaving to finishing to dyeing to garment."