ISLAMABAD, March 14: Prime Minister Shaukat Aziz has said the government is taking steps to reduce inflation and interest rates to meet the challenges of the robust economic growth.

He was talking to World Bank’s vice-president for South Asian Region, Praful C. Patel, who called on him here on Tuesday.

The prime minister informed Mr Patel that the overall poverty level had declined by 6.7 per cent, unemployment rate had fallen to 6.8 per cent and the GDP growth was expected to be 6.7 to 7 per cent this year.

He said the better revenue collection and debt management had created additional fiscal space and allowed the government to increase development expenditures, which were now all-time high.

Mr Aziz said the country was expected to maintain the momentum of economic growth despite the large-scale destruction caused by the Oct 8 earthquake and a surge in international oil prices.

He said strong and sustained economic growth over the past several years was strengthened by the government’s economic philosophy based on deregulation, liberalisation and privatisation, truly home-grown wide-ranging and deep structural reforms, continuity, consistency and transparency.

Growing domestic demand and renewed confidence of the private sector, improved fiscal discipline and debt restructuring with currency stabilisation and rising public sector development were other reason of robust economic growth.

Mr Patel said that the World Bank’s assessment of Pakistan’s economic performance was positive. He also mentioned his visit to the NWFP and appreciated the projects being run with community participation in earthquake-hit areas.