Former chairman Federal Board of Revenue (FBR) and renowned economist Shabbar Zaidi on Thursday claims that Pakistan has technically entered default, ARY News reported.
While talking to ARY News, Shabbar Zaidi said that Pakistan has to rationalise the petroleum products and restrictions should be imposed on the approval of the letters of credit (LCs) by the import and export controller.
Zaidi said that the government has informed about the default, LCs worth $4 million were pending and the State Bank of Pakistan (SBP) is not approving opening any further due to which no raw material is imported from Pakistan.
READ: ISHAQ DAR REJECTS RUMOURS, SAYS ‘NO RISK OF DEFAULT’
The former FBR chairman asserted that the government lacks financial resources for importers which means that the country technically entered default.
The economist said that the government has not taken a single positive step for the economy and the economic crisis in Pakistan got worsened. Imports must be increased in order to collect taxes, and if imports are not increased, There will be no dollar for importers.
He said that the nation should be aware of the real facts that the economic situation of Pakistan is very bad. Apart from imposing a financial emergency, we have no choice but to open only necessary LCs.
READ: PAKISTAN REPAYS $1BN SUKUK BEFORE MATURITY TO AVERT DEFAULT RISK
The government has to implement a financial emergency in which the additional use of petroleum products on heavy vehicles should be stopped. While to save power consumption, the government should issue an order to close all markets at 6 pm.
Earlier, Finance Minister Ishaq Dar rejected the rumours and said that Pakistan is not facing the default risk.
Finance Minister Ishaq Dar criticised that spreading rumours are not in national interests. He clarified that Pakistan is not facing default risk. He said in a statement that meetings are part of political process, however, flexibility was not shown from the other side.
