Sada-e-Watan
Sydney ™
sadaewatan@gmail.com
An Open Letter of H.E. Syed Jalil Abbas Jilani about Economic Situation in Pakistan
Canberra
Date: 22.04.2009
I would like to update my Pakistani/Pakistani-Australian brothers and sisters about the economic situation in Pakistan.
2. Despite the incidents of terrorism and the negative media reporting, Pakistan’s economy has continued to grow. The economic revival has begun as is reflected by the following facts:
- Pakistan is amongst the few states whose foreign exchange reserves keep building up even though IMF assistance is only half way through. Foreign Exchange reserves are expected to exceed record US$ 16 billion.
- While the World Bank has estimated that global remittances will fall by 5%, Pakistan’s inflows and remittances at US$ 5.6 billion during July 08 – March 09 increased by 19.6%.
- Foreign Direct Investment inflows are close to its level of last year at 7 billion dollars.
- Pakistan’s exports are likely to be close to last year US$ 19 billion.
- Karachi Stock Exchange (KSE-100) has rallied 25% since the beginning of the year as the best global performer only behind China. Foreign funds have returned to Pakistan capital market.
- Inflation which touched 29% last year, has come down now to 19% and is expected to decline further by end 2009 due to improved supply position and fall in prices of imports such as petroleum, edible oil and fertilizers.
- The agriculture sector is expected to perform even better. According to all projections, the bumper wheat crop this year will have surplus grain stocks. The wheat output is likely to stand at 23.5 million tons and rice crop will exceed 6 million tons.
- The textile sector has proved to be remarkably resilient in the face of heavy odds such as energy load shedding, high interest rates and global recession etc.
- The macro-economic indicators have started to show improvement due to stabilization programme. The fiscal and current account deficit are likely to fall 4.5% and 5.8% respectively. In order to meet the energy shortfall, the Government has embarked upon an ambitious agenda to invite foreign investments in the power sectors. New power projects are being set up on fast track basis. We are expecting US$ 2 billion Foreign Direct Investment in power sector by end 2009. The Government of Pakistan feels confident that we will be able to eliminate load shedding by the end of current year.
FODP Meeting in Tokyo
- A Ministerial meeting of the Friends of Democratic Pakistan was held in Tokyo on 17 April 2009 under the chairmanship of the President of Pakistan Mr. Asif Ali Zardari. Thirty one countries and eighteen international institutions attend the meeting.
- The meeting acknowledged the important role of Pakistan and the great sacrifices that Pakistani people had made in confronting the menace of terrorism and extremism as well as Pakistan’s strong commitment to become an anchor of stability and peace in the region as a whole.
- The member of the FODP decided to deepen and broaden their engagement and provide tangible support to Pakistan with a view to establishing a robust partnership for peace and development.
- The meeting expressed support for Pakistan’s efforts to further advance economic reform by increasing policy reform, privatization as well as increasing private sector growth, accountability and transparency.
- The members of FODP also pledged US$5.8 billion assistance to Pakistan, at the Donor’s conference, which demonstrate their confidence in the current leadership and commitment to support Pakistan’s economic development.
( S. Jalil Abbas Jilani)
High Commissioner of Pakistan
Canberra Australia
