islamabad -Finance Minister, Senator Mohammad Ishaq Dar Saturday said that forex reserves have increased to $12 billion and will reach $15 billion by September 30th, 2014.
He was talking to prominent UK fund managers including Chief Executive Officer (CEO) London Stock Exchange, Xavier Rolet, who called on the minister, according to the press statement issued by Finance Ministry here. The minister apprised them that country’s macro-economic indicators have shown steady improvement as a result of stabilization and structural reforms undertaken by the government.
He also informed the delegation that the capital market in Pakistan grew by over 40% since the government has taken over and apprised them that the country was open to business and offered attractive investment opportunities with high returns. The finance minister said that the response of the international investors was overwhelming and the subscription was 14 times of the amount originally intended.
He mentioned that with the launch of the Euro Bond Pakistan has returned to the international bond market after seven years absence. Pakistan’s recent dollar bond received bids totaling $7 billion, reflecting strong demand for Pakistan’s sovereign paper. The finance minister also informed that Pakistan will issue an Islamic bond denominated in dollars for Islamic banking institutions and funds. He informed the group that after initiating home grown economic reforms with successful implementation, Pakistan’s standing in the international markets has improved considerably. While talking about energy crisis, the minister told the delegation that the government was launching various energy projects and taking necessary steps to add around 10,000 megawatt generation to the national grid which will eliminate the energy shortfall in the next four years.
He informed the delegation that the government has already managed to clear circular debt of Rs 500 billion within 45 days from taking oath. He further added that the World Bank has approved two concessionary loans to Pakistan after a period of five years and will provide $1bn for energy and development reforms. He said the government has secured the necessary financing for the construction of Dasu Hydropower Project. Financing of Diamer-Bhasha Dam is in progress and the government has already started acquisition of land from its own resources for this project. The minister also highlighted the opportunities in the telecommunication sector and informed the group about the recent auction of 3G and 4G licences which has fetched over $1.1 billion recently in a transparent manner. On the occasion, the UK fund managers appreciated the positive steps taken by the Pakistani government to put the economy back on track. Rolet informed the Minister about institutional appetite of British companies towards Pakistan after phenomenal growth in its capital market. While praising the reform initiatives of the present government, he said that Pakistan’s economic success story is gaining momentum and now needs to be told in a right way to the right people. He mentioned the ongoing collaboration between the London and Karachi Stock Exchanges with praise-worthy results. He further added that London Stock Exchange is looking at ways to maximize partnership opportunities with Pakistan’s corporate sector.
Rolet congratulated the Finance Minister on the impressive success of the Pakistan’s Euro Bond issue in the international market.