ISLAMABAD, Aug 12: There may be uncertainties as to who will come into power after the next general election, but international lenders are sure that there will be no substantial changes in Pakistan’s economic policies or at least stagnation in its capital market reforms.

Two of the top international financial institutions — the World Bank and the Asian Development Bank — did not expect any substantial changes in the Pakistani economic landscape even in the event of the exit of Prime Minister Shaukat Aziz and his cabinet, reliable sources told Dawn on Sunday.

Although not sure about the components of the new political set-up or the success of any of the two main political parties — the Pakistan People’s Party and the Pakistan Muslim League (Nawaz) — or the Musharraf-Benazir deal, the two lending organisations have succeeded in getting assurances from the present government and various ministries, departments and institutions that they will continue with the economic policy reforms which both the financial institutions have been financing.

In one of its last month’s reports, the ADB Board of Directors has shown its satisfaction of approving $400 million for financing the second generation capital market reforms in Pakistan.

“The presidential elections scheduled for late 2007 may result in policy changes in some areas. However, economic policies are unlikely to be fundamentally changed given the high degree of continuity in economic policy making in Pakistan over the last decade and a broad consensus for economic reforms, including financial sector reform,” the board says in its report.

The ADB has recommended a number of legislations to be approved from the new parliament for implementing the reform process. It says there could be the risk that draft legislation would be enacted with substantial delays and or not in line with international best practice due to vested interest and lack of understanding by lawmakers.

However, to minimise this risk, legislative changes related to the second generation reforms were drafted during the preparation of the programme or will be drafted under the technical assistance to ensure quality of the legislation. Technical assistance would also be provided by the ADB to support the government in undertaking and sustaining consultations with stakeholders.

The sources said the government had assured the international donors that institutions like the SECP and the Ministry of Privatisation would follow the reform process as per the advice of the financiers.