KARACHI, Feb 7: Adviser to the Prime Minister on Finance, Dr Salman Shah, said on Wednesday that growth rate would remain above seven per cent this fiscal.

He disclosed that the government was planning to issue more long-term bonds in the international market which had shown growing confidence in Pakistan.

He was talking to newsmen after the inaugural session of a seminar on “capital market, an international perspective" held under the auspices of the British High Commission.

Dr Salman pointed out that last year Pakistan had issued bonds for 10 and 30 years. This time, he said, the size of the issue would be decided after road-shows.

Claiming that Pakistan’s economy had shown excellent growth of above seven per cent, Mr Shah said foreign direct investment (FDI) in the country during the first six months of the current fiscal was around $3.5 billion and the final outcome is expected to be much better. The position of the remittances is also very good, he added.

"Our financial flows and numbers are very healthy. The balance of payment surplus would also be healthy", he remarked.

Replying a question regarding the bond issues, he said “we go to the international capital market every year under a long-term strategy.”

Mr Shah told a questioner that this year global depository receipts (GDRs) would be issued for three financial institutions — National Bank, UBL and Habib Bank — and Kapco.

But despite claims of upward growth in the economy and decline of fuel price in the international market, Mr Shah was not inclined to commit on any immediate downward revision of energy price in the country and said if the energy prices remained stable and international oil prices came further down, the government would be able to meet inflationary targets as well.

Contrary to the general perception and experts’ analysis, Mr Shah claimed that that the core inflation is quite less and under six per cent. Food inflation is also coming down.

The prices of perishable items have reduced substantially and if the energy prices remained stable and the international oil prices came further down, the government would be able to meet our inflationary targets as well.

Mr Shah claimed that poverty level was declining. He said financial institutions in Pakistan were the most dynamic in Asia at a time when acquisition and investment was increasing. He also referred to upward trend in the manufacturing and telecom sector.