Statement By IDB Acting Governor for the Islamic Republic of Pakistan

Transcription

1. STATEMENT BY H . E. TARIQ BAJWA IDB ACTING GOVERNOR FOR THE ISLAMIC REPUBLIC OF PAKISTAN (Original : English) Excellency the Chairman of the Board of Governors of IDB, President of the Islamic Development Bank, Fellow Governors and Alternate Governors, Ladies and Gentlemen, Assalam-o-Alaikum, I feel greatly honored to have the opportunity to address this august forum. Let me, on behalf of the Government of Pakistan, extend my profound gratitude to IDB and the Government of Republic of Indonesia for hosting the 41stAnnual Meeting of the Board of Governors of IDB. I appreciate the warmth and generous hospitality with which we have been received by the People and Government of Indonesia and the support provided by IDB Management and staff under the leadership of H.E. President Dr. Ahmad Mohamed Ali. Mr. Chairman, I consider the 41st Annual Meeting of IDB Board of Governors as an important step in strengthening mutually beneficial relations and cooperation established over decades between the Government of Pakistan, the IDB Group and among member countries. Over the years, we have witnessed IDB growing and expanding its role to help the member countries in realizing their development agenda. As the pioneer multilateral development institution among the Muslim Ummah, IDB has continued to work as a catalyst for economic development in member countries. We appreciate the Bank management’s efforts for increasing approvals to US$ 12.1 billion in 2015 as compared to US$ 10.7 billion during 2014 despite the challenging geopolitical and regional environment, while at the same time protecting the strong capital position and AAA rating of the Bank. The historic strategic partnership framework (SPF) agreement with World Bank Group on the “Deep Dive Initiative” through which both the groups will work jointly during 2016-18 for investment across common member countries, will be very helpful in the development of important sectors including infrastructure, water and food security, education, Islamic finance and in promoting regional integration. Excellency, ladies and gentlemen, You are aware that Pakistan has initiated Zarb-e-Azab, anti-terrorism campaign in FATA region. One of the major objectives of the campaign is to ensure local and regional stability through security. The collateral effect of this “war against terrorism” has been the displacement of over 300,000 families from the region. These temporarily displaced persons are being looked after by the Government of Pakistan and we are thankful to IDB for providing assistance for their return
2. and rehabilitation . However, this has not deterred the Government from its other task i.e. economic development. Government of Pakistan, with the help of its people is committed to the continuity of economic reforms under its democratic leadership. As we start the fourth year of the incumbent Government in Pakistan, Pakistan has put in place a very comprehensive agenda of economic reforms aimed to spur economic growth, maintain price stability, provide jobs to the youth and to rebuild and develop key infrastructure of the country. Ladies and gentlemen, By virtue of these initiatives our GDP growth rate target for the current financial year is 5% as compared to 4.2% in 2014-15, which is the highest in the last eight years. The Tax to GDP ratio has also shown a consistent increase over the last 3 years. Foreign exchange reserves are at an historic high of $ 21 billion and fiscal deficit has been reduced to half at 4.3%. Inflation rate measured through Consumer Price Index (CPI) averaged at 2.6% during July 2015 - March 2016. In addition to the stabilization measures in the short-run, the Government embarked upon a longterm plan through extensive consultative process. Vision 2025 as a national document aims at balanced human, social and economic progress throughout Pakistan. It emphasizes revival of growth, strengthening of development foundation and reaching upper middle income country status. The Vision 2025, essentially is a step towards finally attaining the status of a developed economy by 2047, the centennial anniversary of Pakistan. Pakistan is moving towards regional integration to harness the potential of its strategic location. Pakistan and China have started working on China-Pakistan Economic Corridor (CPEC). The benefits of CPEC will be unprecedented for the people of the region in terms of creation of new and diverse economic opportunities. Mr. Chairman, To meet the challenges of global economic slow down and continuing poverty, faster growth will be needed for low and middle income countries including Pakistan to ensure economic stability and welfare of its population. Therefore, the role of international and regional development institutions like the IDB becomes ever more pronounced to help member countries to reform their governance structures and to grow and develop in an equitable and sustainable manner. The governance of these organizations must reflect contemporary global economic realities if they have to remain as effective in future as in the past. We are sure that in the wake of IDB’s vision, the Bank will become a world-class development institution by the year 1440H, inspired by Islamic principles. We also hope that in its transition towards 1440H Vision, the Bank will operate on the Islamic notion of development that is centered on comprehensive human development. Mr. Chairman, The need of the hour is that development institutions like the IDB should not only provide and encourage enhanced financial flows and to foster trade links but to also render the necessary policy advice to member countries to ensure avoidance of potentially destabilizing imbalances in future. The improvement in financial flows and trade links will help member countries to accelerate economic growth and to focus on social sectors.
3. We appreciate IDB ’s role in generously supporting Pakistan in our efforts to put the economy on a high growth trajectory by bringing about necessary structural changes for a sustained and inclusive growth. I would like to place on record the Government of Pakistan’s deep appreciation of IDB’s support to Pakistan especially in the energy sector. I would also like to thank IDB for financing the reconstruction and rehabilitation project for the Housing Component of FATA – TDPs. I am specially beholden to brother H.E. Dr. Ahmad Mohamed Ali for allowing Government of Pakistan the special dispensation of a single tranche mechanism due to sensitivity of the area. The project will augment Government of Pakistan’s efforts to ensure economic stability and social cohesion in an important region of Pakistan. Mr. Chairman, I conclude by reaffirming our resolve to further strengthen the close cooperation with IDB and fellow member countries. Needless to say, our joint efforts can go a long way in bringing about stability and prosperity in our region and in the Muslim world. We greatly value our close economic relations with IDB and hope that the future will witness further consolidation and strengthening of these brotherly relations. May Allah bless us all.