Former FBR Chief Shabbar Zaidi said on Monday that the country is going towards a default due to Ishaq Dar’s policies, banks have been directed to refuse to open Letters of Credit (LC) due to a lack of dollars in the country, ARY News reported.
Talking in ARY News talkshow The Reporters Shabbar Zaidi said that in his opinion the government has informed the banks about the country’s chances of defaulting and that $4 billion worth LCs are still pending. The delay in the opening of the LCs is causing supply-chain issues, he added.
He added that the International Monetary Fund (IMF) has also refused to negotiate unless the government raises tax collection. If the government increases imports, then tax collection would go down, and if imports are not increased then there will be a dollar shortage, he added.
The former FBR Chief said that the PDM government has not taken one positive step for the economy. Things are getting out of the government’s hands now, he added.
Shabbar added that Ishaq Dar kept the dollar rate in check artificially from 2013 to 2018. Ishaq Dar ran an import-based economy but destroyed the economy of the country. If the country defaults, Ishaq Dar would be responsible, he added.
The country’s economy suffered a loss of $86 billion from 2013 to 2018, he added.
Ishaq Dar’s policies are destroying the local industries, Miftah’s criticism of him was totally justified, he added.
Shabbar recommended lesser the usage of petroleum to support the crumbling economy, legislating in a way that no car over 1500cc can hit roads three days a week and banning international tours of government officials.
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He added that companies using imported oil should be made to use local oil. It is better to close the market early rather than begging from other countries, he added.
