Government committed to involve development partners in reforms

ISLAMABAD (APP) - Prime Minister Syed Yousuf Raza Gilani on Thursday said the government is committed to involving development partners both individually and collectively for their feedback and monitoring of the overall economic reform agenda.

It is critical that development partners equally recognize the need for timely inflows of financial assistance for reserve build-up as well as meeting other development requirements, Gilani said.

The Prime Minister was talking to a delegation of World Bank which led by Ms. Isabel, World Bank Vice President South Asia Region met him along with Praful C Patel, Ex-Vice President here at the PM House.

Gilani briefed the delegation about the political and economic developments that have transpired over the last few months since he took over as Prime Minister.

The Prime Minister assured the World Bank delegation that the government is committed to macroeconomic stabilization and has taken a number of policy measures including improving the cost recovery for utility, achieving demand containment through appropriate monetary policy measures, and helping poor people through effective social safety net.

The Prime Minister underscored that multilateral and bilateral development agencies and partners need to understand that his government would like to have strong ownership of the macroeconomic stabilization package and structural reforms.

In response the World Bank Vice President assured the Prime Minister of the World Bank's strong support for the democratic government.

The World Bank program which is going forward is substantive and diverse, helping Pakistan in both economic and social uplift.

The World Bank delegation assured the Prime Minister of their full support in this transition and said the bank will consider possible augmentation of financing.

Meanwhile, a delegation of Asian Development Bank (ADB) led by Juan Miranda, Director General called on Prime Minister Syed Yousuf Raza Gilani here on Thursday to discuss the overall macroeconomic policy environment.

The Prime Minister assured the ADB delegation that Ministry of Finance and State Bank of Pakistan are working closely to implement a comprehensive macroeconomic stabilization program and all difficult but most warranted measures are being taken.

He assured the team that measures are being taken to build up reserves, SBP policy rate adjustment has been substantive and issues of competitiveness are being addressed through the exchange rate stance.

Alongside, the new Government has taken appropriate measures to reduce the subsidy by allowing pass through which had been substantially delayed by the previous regime. Expenditure controls and rationalization is further underway, he added.

The ADB team assured the Prime Minister that they are working steadfastly to support the diverse and financing requirements of the Government.

Notable was discussion on the ADB's quick disbursing assistance where the Government was assured on fast tracking of the two phased quick disbursing program called "Accelerating Economic Transformation" which aims to support the Government's economic transformation program which includes among others far reaching long term financial sector transformation. The State Bank of Pakistan has worked closely on this program and the legislative and regulatory reforms are to be placed before the Cabinet for their endorsement. The ADB delegation assured the Prime Minister that ADB is committed to providing the required level of quick disbursing financing.

The Government has also been assured by the IMF that a letter of comfort supporting this quick disbursing assistance is on its way.