During the meeting, it was observed that reforms have started delivering the desired dividends and the macroeconomic indicators are gradually moving upwards.
The advisor asked the World Bank to support Pakistan in the development of infrastructure needs of the fast-growing economy including the energy sector.
He asked the World Bank to help Pakistan in developing and implementing a private sector development strategy that would enable the private sector to efficiently compete in the world markets and ensure achievement of 7-8 percent GDP growth target set by the Prime Minister.
Briefing the delegation about the signification process, Dr Salman Shah stated that Pakistan has overcome the macroeconomic challenges and its policies of privatisation, deregulation and liberalisation have worked very well.
All major banks have been privatised and 80 percent of banks are now with the private sector.
He said the State Bank of Pakistan was now fully autonomous. He said the government has deregulated the energy sector and the SECP has introduced transparency in corporate governance. He added that the CBR was now a business-friendly and transparent organisation.
According to the advisor, the GDP and flow of foreign direct investment (FDI) in Pakistan were maintaining upward trend and budgetary position and tax collection was improved.
He further said lowering of inflation has provided greater monetary flexibility and the interest rates of banks have been brought down from double digits to single digit, which has encouraged private investment.
Now we have strong external liquidity, which has led to exchange rates stability. As a result of confidence in the economy, remittances from overseas Pakistanis have increased manifold. Moody and S&P have upgraded the credit rating of Pakistan.
Replying to a question about corruption in Pakistan, the advisor pointed out that the higher-level corruption has been eliminated but at the middle-level Pakistan do has some problems.
The government was trying to overcome it by strengthening institutions and curtailment of discretionary powers of police and tax officials.
He said the government has introduced structural reforms in the CBR and simplified procedures by introducing self-assessment in income tax.
The World Bank delegation led by its president comprises Praful Patel, vice-president, South Asia region, Robert Floyd, assistant to Wolfensohn, John W. Wall, country director, Abid Hasan, operations advisor and Thomas Buckley, acting country co-ordinator. The meeting was also attended by minister of state for finance Omar Ayub, minister of state for economic affairs Hina Rabbani Khar, State Bank governor Dr Ishrat Husain, CBR chairman, secretaries of finance and economic affairs and other senior officers of the finance ministry.