ISLAMABAD - Leaders of the business community have hailed the provision of $500 million IDA Development Policy Credit by World Bank for Pakistan's competitiveness and growth, terming it the success achieved due to prudent economic policies of the government.

Iftikhar Ali Malik, Vice President of South Asian Association for Regional Cooperation’s Chamber of Commerce and Industry (SAARC CCI), while appreciating the government policies, said that signing of $500 million IDA Development Policy Credit by World Bank to Pakistan was an ample proof that international organisations and development partners were expressing their confidence in the improvement in the country's economy.

He attributed this achievement to the government, especially to the hard work of Finance Minister Muhammad Ishaq Dar. Malik further said that this would encourage the private sector’s investment in the country. He added that it would also help improve the business environment in the country and also attract foreign direct investment.

"We should avoid criticism for the sake of criticism, and appreciate the economic achievements of the government,” he stressed.

Malik said the financial credit in this regard would not only help enhance foreign exchange reserves but would also generate economic activity through development projects in the country.

Islamabad Chamber of Commerce and Industry (ICCI) Vice President Sheikh Abdul Waheed told APP that the credit of $500 million was indicative of the government's prudent economic policies, which had helped achieve economic stability in the country.  He said the credit would also help Pakistan improve the business environment and enhance fiscal management, attracting direct foreign investment in the country.

He hoped that the World Bank credit would be utilized on appropriate place that is for simplification and streamlining of the payment of taxes and improvement in governance and transparency of policies to attract private sector investment.

President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Abdur Rauf Alam congratulated the government and Finance Minister Ishaq Dar and his team on stabilizing the national economy, leading towards enhanced economic growth for the prosperity of the country. The IDA credit of $ 500 million by the World Bank to Pakistan would also help achieve long-term economic growth on sustainable basis, besides ensuring payments of returns and improving credibility and image of the country at international levels.

He added that this credit would also help mobilization of the private sector and economic growth for the socio economic prosperity of the country.

Rauf Alam further said that this would also help attract foreign direct investment and China Pakistan Economic Corridor (CPEC) and Gawadar related development projects.

According to Finance Minister Ishaq Dar, Pakistan would get $500 million IDA Development Policy Credit in a few days thus increasing Pakistan's foreign exchange reserves to $22.5 billion, the highest in the history of the country.

He dispelled the impression that the country's debt would increase and said that Pakistan has qualified for IDA credit on soft term basis for competitiveness and enhancing growth.

The soft term credit by the World Bank would help reduce debt servicing in the country besides benefitting economic growth on sustainable basis.