Finance Ministry denies imposition of ‘economic emergency’ in Pakistan

ISLAMABAD: The Finance Ministry on Tuesday rebutted reports of an ‘economic emergency’ being imposed in Pakistan, saying that such messages were aimed at creating uncertainty about the economic situation.

“Finance Division not only strongly rebuts the assertions made in the said message but also categorically denies it and that there is no planning to impose economic emergency,” stated the statement issued today.

It further stated that the messages were ‘unfortunately’ aimed at creating uncertainty about the economic situation in the country and can only spread by those who do not want to see Pakistan prosper.

Finance Division issues a rebuttal on false message on supposed economic emergency proposals been circulating on social media. pic.twitter.com/chTW80SyZV

— Ministry of Finance (@FinMinistryPak) December 6, 2022

The ministry noted that the creation and spreading of such false messages were against the national interest in these times of economic hardship.

It said that even a cursory reading of the nine points would show how “far-fetched those suggestions are”, adding that it was “quite inappropriate” to equate Pakistan with Sri Lanka, given the “inherent strength and diversity” in the former’s economy.

Defending itself, the division said the present difficult economic situation was largely due to factors like the commodity super-cycle, the Russia-Ukraine war, global recession, trade headwinds, the Fed’s increase in policy rates, and devastation wreaked by unprecedented floods.

It added that the government was making “utmost efforts” to minimise the impact of such external factors, even when faced with the economic consequences of unprecedented floods and having to meet conditionalities of International Monetary Fund (IMF).

The government, according to the statement, remains committed to completing the money lender’s programme while meeting all external debt repayments on time.

The finance division also mentioned that negotiations with the International Monetary Fund (IMF) on the ninth review of Pakistan’s $7bn Extended Fund Facility (EFF) were at the advanced stage. “With the efforts of the current government, the IMF programme has come back on track,” it concluded.