BERLIN, Dec 7: Finance Minister Shaukat Aziz has said that despite adverse impacts of the Sept 11 events on Pakistan’s economy, the agenda of reforms initiated by the government had started showing positive results.

Addressing the members of Pakistani community at the Pakistan embassy, he said the foreign exchange reserves of Pakistan had increased to $4.4 billion for the first time in its history.

The minister said that with a view to ensuring transfer of money from abroad through proper banking system, the government was taking measures to control instruments like “Hawala” and “Hundi”, adding, the transfer of foreign exchange through these channels encouraged smuggling and consequently damaged the economy.

Shaukat Aziz informed the community that the government was contemplating converting the money changing outlets into exchange companies.

He said that to encourage the overseas Pakistanis to send their remittances through banks, the government was trying to improve the working of banks to enhance their ability to ensure speedy transfer of money.

In this regard, a mechanism of cooperation between banks and post offices has also been evolved, he said, adding that the government was also taking steps to keep the dollar-rupee exchange rate at around Rs60.61 to provide incentive to the overseas Pakistanis to use banks for their money transactions.

The government has also promulgated an ordinance to provide protection to the foreign currency accounts in Pakistani banks, Aziz said.

The account holders are free to deposit, withdraw or transfer any amount out of their accounts without any restriction.

The foreign currency deposits would remain with the banks concerned and, therefore, would not be transferred to the foreign exchange reserves, another government decision stipulates.

He urged the overseas Pakistanis to strengthen the hands of the government by supporting these initiatives.

While implementing the economic agenda, the government is ensuring full transparency, Aziz said, and went on to add that “there is absolutely no corruption in the top echelons of the government.” This fact has also been acknowledged internationally, he said.

He said the decision to support campaign against terrorism was taken in the best national interest and it was backed by the majority of Pakistanis.

He strongly refuted the notion that any quid pro quo was involved in this decision.—APP