Donor Coordination Committee (DCC) Meeting Witnesses Renewed Commitment from International Development Partners to Foster Pakistan’s Economic Growth.

Government of Pakistan
Ministry of Economic Affairs
***
Islamabad: 21st November, 2023

PRESS RELEASE

Donor Coordination Committee (DCC) Meeting Witnesses Renewed Commitment from International Development Partners to Foster Pakistan’s Economic Growth.

The Federal Minister for Finance, Revenue & Economic Affairs, Dr. Shamshad Akhtar convened a meeting of the Donor Coordination Committee (DCC) at the Ministry of Economic Affairs on November 20, 2023, in Islamabad.

The Federal Minister highlighted the steadfast and critical support of development partners in supporting Pakistan. Despite external factors impacting Pakistan’s economy, including tightening global financial conditions and rising commodity prices, the successful review of the IMF staff level agreement was a significant achievement. She emphasized government’s commitment to macroeconomic adjustment and welcomed ongoing support from development partners.

The Minister reported positive signs of economic recovery, expecting GDP growth between 2 to 2.5% in fiscal year 2024, up from 0.5% in fiscal year 2023. She stated that the government is actively pursuing reforms in fiscal consolidation, monetary policy, currency market sustainability, energy, business environment, and social safety nets. She acknowledged the challenges faced by vulnerable households due to fiscal belt tightening and highlighted the government’s commitment to addressing poverty and improving economic conditions.

Representatives from the World Bank, EU, ADB, USAID, UNDP, Germany, Japan, WFP, IsDB, IFAD, and others expressed congratulations on the successful IMF review. The development partners pledged continued support to the Government of Pakistan and acknowledged the importance of transparency, alignment with government priorities, and the need for timely disbursement of committed support.

The Minister expressed gratitude for the support received and emphasized the need for cooperation to track off-budget support. Drawing attention to the devastating floods in Sindh and Balochistan, she emphasized the critical need for swift and efficient transactions, prioritizing the timely disbursement of committed support to effectively address these challenges.

As the government prepares for the upcoming CoP-28, the chair called for efforts to optimize the capital of Multilateral Development Banks (MDBs) and increase lending headroom. The appeal for debt for nature and debt for social development swaps was reiterated, signalling a commitment to meeting climate finance targets.

Present at the meeting were distinguished ambassadors from Italy, Japan, and Kuwait to Pakistan. Notable international donor agencies in attendance comprised the World Bank, ADB, AFD, USAID, UNDP, JICA, TIKA, WFP, KOICA, FCDO, UNICEF, KfW, and IsDB. Diplomatic representation extended from the Embassies of the United States of America, Republic of Korea, France, Denmark, and People’s Republic of China. The gathering also welcomed key figures including the Head of Development Cooperation from the European Union (EU), the Head of Cooperation and Counsellor from the Canadian High Commission, the United Nations Resident Coordinator, and the Deputy High Commissioner from the Australian High Commission. Notably, senior officials from the Ministry of Economic Affairs, including the Secretary, Additional Secretaries, and all Joint Secretaries, were also present, contributing to the comprehensive and diverse participation in the meeting.

The meeting concluded with a commitment from development partners to continue dialogue and cooperation.