Govt returns Rs208b loans to SBP: Tarin

KARACHI - The federal government has returned Rs 208 billion loans to the State Bank of Pakistan in this fiscal with the aim to reduce borrowings from the central bank.
Adviser to Prime Minister on Finance Shaukat Tarin disclosed this on Monday while addressing to the businessmen at a function organized by the President of Karachi Chamber of Commerce and Industry.
Mr Tarin said that the government would strictly adhere to bring down its borrowings from the central bank and trim the fiscal deficit to 4.2 per cent of the GDP in FY09.
He pointed out that the foreign exchange reserves of the country have improved during the past few months because of the sound initiatives of the government. He said that the foreign exchange reserves are expected to increase further as the IMF, World Bank, ADB and the Friends of Pakistan have promised to provide more funds to stabilize the economy of the country and to promote growth.
He said that the Friends of Pakistan Forum is meeting in Japan where the donor countries would announce their financial support for Pakistan.
He said that Saudi Arabia would also announce its support to Pakistan government at the meeting of the Friends of Pakistan forum.
Mr Tarin said that during his recent visit to Saudi Arabia he has requested the officials of the Saudi government to provide oil on deferred payment and financial assistance against the securitization of the remittances.
Adviser to Prime Minister said that the inflation and the mark-up rates would start declining in next few months, leading to a relief to the consumers, borrowers and these developments would augment economic and industrial growth in the country in this fiscal.
Mr Tarin said that the government was ready to support the industry to enhance exports and industrial output. He urged the businessmen and the industrialists to strive hard to enhance exports-base and industrial production.
He asserted that most of the key economic indicators have shown improvement in this fiscal because of the measures taken by the government that was a good omen for the national economy.
He maintained that despite global recession and financial crisis the economy of the country was poised to depict 2 to 3 per cent growth in the current fiscal.