Ishaq Dar reiterates ‘Pakistan will not default’

ISLAMABAD: Finance Minister Ishaq Dar on Wednesday reiterated that ‘Pakistan will absolutely not default’ as the government was committed to overcome the prevailing economic challenges, ARY News reported.

Addressing members of the business community at the Federal Board of Revenue (FBR) in Islamabad, the finance minister pointed out that Pakistan was passing through a challenging phase but the government’s economic team was working hard to overcome these challenges.

Commending his economic team for its ‘efforts and hard work’, Ishaq Dar noted that the country had recorded a current account surplus for the months of March and April at $750 million and $18m, respectively.

Referring to the International Monetary Fund (IMF) bailout programme, the minister said Pakistan has completed all the technical formalities as well as prior actions, but unfortunately, “we are facing a structural delay in this regard”.

However, Ishaq Dar expressed the belief that Pakistan will not default and the coalition government was committed to complete the 9th review of the IMF programme.

Terming the delay in bailout programme ‘unfortunate,” the minister said that the review should have been completed earlier, he added.

Meanwhile, Dar also said suggestions of the business community will be given due consideration as joint efforts are required to put the country on the path of economic stability.

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

Earlier, it was reported that the International Monetary Fund (IMF) still showing a lack of confidence and asking Islamabad to ‘do more’ to unlock loan programme despite the assurances from friendly countries about external funds to Pakistan.

The current loan programme with the IMF will end on June 30, 2023, and Pakistan is now ‘considering’ a new IMF programme on renewed conditions.

The fund is delaying the ninth review with Islamabad which has ‘forced’ Pakistan to get rid of the current loan programme and generate more funds from friendly countries, sources said.

Sources further say during the tenure of Imran Khan’s government, ‘tough’ demands of the IMF were also agreed upon for the loan programme.

The incumbent government imposed taxes of Rs170 billion through the money budget in February as per the demands agreed upon by Imran’s government. Prices of gas and electricity were increased up to 40pc and the rupee further depreciated as the IMF was assured to bring the dollar exchange rate as per open market.