According to reports, Finance Minister Ishaq Dar recently announced that the government will establish Pakistan Infrastructure Bank with a paid-up capital of $1 billion that would finance private investors for development projects. Pakistan government and the International Monetary Fund (IMF) would have 20% shares each in it while the remaining will would be held by global organisations like the International Finance Corporation.
The minister expressed at a meeting held for the Pakistani media towards the end of his Washington DC visit during which he took part in meetings of the IMF and the World Bank. He stated that the government would be launching Pakistan Development Fund (PDF) in near future as well and its shares worth Rs100 billion would be offered to Pakistani diaspora to channelise their remittances in an effective way. These shares will be listed on the Pakistan Stock Exchange at a later point in time.
“After the success of Sukuk (Islamic bonds), the PDF will be another attractive investment for overseas Pakistanis.”
Providing a round-up on the plenary sessions with the IMF and World Bank, he stated that there was positive sentiment regarding the huge economic rebound experienced by Pakistan over the last years.
“Pakistan was on the verge of bankruptcy in 2014 and today it is likely to achieve approximately 5% growth during the current financial year. Both IMF and World Bank are on the same page with the Pakistani government in these projections.”
It is notable that global credit rating agencies have improved Pakistan’s rating from negative to stable and from stable to positive in the recent years to a level that Pakistan is expected to be included in G-20 countries by 2030.