ISLAMABAD, Aug 25: Pakistan on Monday asked the donor agencies to resume export credits, discontinued in the wake of May 1998 nuclear tests.

Finance Minister Shaukat Aziz told a donors’ coordination meeting here that revival of export credit to Pakistan was necessary owing to rising infrastructure requirements for sustaining an expanding economy.

He said this was an area where donors’ assistance was essential as it would involve significant capital investment. It was pointed out that a support of two per cent of GDP or about $1.5 billion in the form of soft loans will be required besides an equal amount in the form of grants.

The minister listed significant improvements in the fundamentals of Pakistan’s economy, characterised by high growth rate, sustainable balance of payments, stable price level, high foreign exchange reserves, unprecedented low interest rates and reformed banking system.

“All these developments warranted a positive revision in country’s eligibility to access export credits”, he pleaded.

The government side told the meeting that in the medium term the reforms process would witness completion of PRSP and its endorsement by donors, fast track implementation of education for all and education sector reforms with a special focus on higher education.

Increased efforts would be made to cater for mother and child health and achievements of 100 per cent coverage for expanded programme for immunization, significant containment of communicable diseases with strong check on HIV/AIDS and eradication of polio.

The donors were also told that reforms would also include substantial reduction in debt burden through a sustained application of debt management strategy, further reforms in the banking sector with privatization of public sector banks, completion of Wapda’s corporatization into independent and viable entities, consolidation and strengthening of fiscal reforms and reaching out to two million people through micro-credit.

He told the donors that it was the government’s considered view that Pakistan would no longer need IMF’s support beyond the current programme which would end in October 2004.

He said that exit from a fund programme would not mean that there would be no further engagement with the IMF, as it would remain an important consultative partner. More importantly, Pakistan’s partnership with other donors would continue unabated.

The meeting was attended by 27 representatives of the bilateral and multilateral donors, including the US, UK, Germany, France, China, Japan, European Union, the World Bank, Asian Development Bank, UN system and Islamic Development Bank.