Political uncertainty deprives country of $2.4 bn

**
Ye hai Hub-ul-Watni ki Azeem Tareen Misal jo Sunehre Huroof mein likhi jae gi …

Wah PTI ke Sher Jawano … Dil Khush Kr Ditta Je … (Imran Khan)**

Political uncertainty deprives country of $2.4b

September 17, 2014
OUR STAFF REPORTER

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ISLAMABAD

Finance Minister Senator Ishaq Dar on Tuesday said that country has beendeprived of $2.4 billion foreign exchange due to the political uncertainty that delayed three important transactions; issuing of Sukuk bond, divestment of OGDCL shares and IMF tranche.

Finance Minister made these remarks in a meeting with President Asian Development Bank Takehiko Nakao who called on him. Ishaq Dar said government has failed to complete three transactions on time due to the political uncertainty in the country that included issuing of Sukuk, divestment of OGDCL shares and IMF next release. But we would solve the issue amicably as we had already constituted a committee on electoral reforms, he added.

Earlier, the Minister while greeting President ADB, said: “We welcome our esteemed guest on his first visit to Pakistan and appreciate our long standing and trust- worthy relation with our development partner”. The Minister also thanked President ADB for condolences extended by him on the deaths and losses of infrastructure caused by the recent floods.

Briefing President ADB on the economic condition of the country, the Finance Minister said, “we have been following a pro-development macro-economic agenda and improvements can be seen in revenue collection (16.44pc), decrease in budget deficit (5.7pc), growth in foreign remittances (13.7pc), growth in large scale manufacturing (4.2pc) and the increase in the disbursement of agricultural credit (15.91pc). Our government has also increased the spending on the social safety net, the allocation has increased from a mere Rs.40 billion to R s118 billion in the last fourteen months of our tenure. We ensured that no cuts were made in the Public Sector Development Programme allocations.”

The Minister said that we would need the support of the ADB on Diamer Bhasha Dam because solving the energy crisis is the priority of our Government. World Bank is going to hold a **Business Opportunity Conference in Washington on October 8 **and we are going to discuss Diamer Bhasha Dam Project in the conference because it has vital importance for generating energy as well as water conservation. We also want to proceed with the projects of TAPI and CASA 1000 for fulfilling the energy needs of the country in near future.

Chairman National Disaster Management Authority (NDMA), Major General M. Saeed Aleem, also gave a brief presentation to the ADB President on the recent flood damages in Punjab, AJK and Gilgit Baltistan.
Nakao thanked the Finance Minister on extending such a warm welcome to him. He said it is his first trip to Pakistan though he knew about the Gandhara civilization in the area from his school days. He further said that he has great sympathies for the flood affectees and would like to assist in their rehabilitation process.

He said, “ADB helped the people in Philippines affected by the typhoon Yolanda and in 2005, we also helped the people affected by the earth quake.” He further said, “we are happy to know that the Government of Pakistan has immediately started the relief work in the flood hit areas”.

Nakao said that though they could lend only $1 billion to any country for the development projects, yet they would continue supporting Pakistan in projects like renewable energy, Jamshuro and projects of regional connectivity. We would like Pakistan to mobilise its domestic resources for development, he added. Pakistan has a vast potential, it could turn itself into a success story in Asia. We also support TAPI, which is an important project for Pakistan.
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Diamer Bhasha** is also an important project for managing water resources in Pakistan and we would help to the extent possible. As far as the rehabilitation of IDPs is concerned we would gladly extend our expertise for the reconstruction work, the ADB President remarked.

The Finance Minister thanked Nakao for his visit and appreciated his resolve to help the flood affectees and Internally Displaced people.

The meeting was attended by Governor, State Bank of Pakistan, Secretary, Petroleum and Natural Resources, Secretary National Food Security and Research, Secretary Finance, Secretary Water & Power, Secretary Planning, Development & Reform, Secretary Communication, Secretary Economic Affairs Division, Chairman WAPDA, Chairman Federal Board of Revenue, Chairman National Highway Authority, from the Asian Development Bank team Naoya Jinda, Chief Advisor to the President ADB, Klaus Gerhaeusser, Director General, Central West Asia Department, ADB, Werner Liepach, Country Director, ADB Pakistan Resident Mission, Saad Paracha, Country Programmes Officer, ADB Pakistan Resident Mission.

Re: Political uncertainty deprives country of $2.4 bn

Political Crisis likely to hit Pakistan Economy: ADB

20:20 Sep 17, 2014

http://www.samaa.tv/digital_images/600/2014-09-17/political-impasse-likely-to-hit-pakistan-economy-adb-1410967239-9166.jpg

ISLAMABAD: Asian Development Bank President Takehiko Nakao warned Wednesday an ongoing political impasse could damage Pakistan’s recently stabilised economy, as the country’s finance minister said Islamabad would miss its growth target due to recent floods.

Speaking at a joint press conference, Nakao and finance minister Ishaq Dar praised the government of Prime Minister Nawaz Sharif for improving the macro-economic outlook and pursuing a liberalisation agenda.

**“Today we are seeing the growth rate is picking up, the inflation rate is becoming more managed, and foreign reserve (has picked up) – and the exchange rate is becoming stabilised so it is really a remarkable achievement by the government,” he said.

“What is important is the…continuation of democracy. I am so glad to see the peaceful and democratic transition of government last year,” **he continued.

Last year’s general election was the first time a civilian government handed over power to another in a country that has been ruled for more than half its existence by the dominating army.

But protesters led by opposition leader Imran Khan and a populist cleric have camped outside parliament for nearly a month demanding Sharif resign, alleging he rigged the poll, which local and foreign observers rated as credible.
Pakistan’s government has said the crisis has cost the exchequer billions of rupees (millions of dollars) and deterred foreign investment after ratings agency Moody’s upgraded the country’s outlook from negative to stable.

Speaking to AFP, Nakao said: "It’s a very difficult to tell what should be the impact of this political impasse. We don’t have any estimate about it. If it prolongs there is more damage and if it is solved quickly the damage will be more managed."

Nakao added that the bank, which is set to provide $5 billion to Pakistan over the next five years in assistance
particularly in energy and infrastructure sector, would extend flood relief to the country after an assessment report was completed.

At least 296 people have died in this years flooding, which has also damaged 2.2 million acres of farmland in the breadbasket Punjab.

Dar said the damage would affect Pakistan’s growth target of five percent for the fiscal. “It will have a bearing on our GDP, we have a major agricultural loss in Punjab. We have budgeted for and projected (growth) at five percent,” he said. (AFP)

http://www.samaa.tv/economy/17-Sep-2014/political-impasse-likely-to-hit-pakistan-economy-adb