Miftah Ismail claims Pakistan’s default risk has increased

ISLAMABAD: Former finance minister and Pakistan Muslim League-Nawaz (PML-N) leader Miftah Ismail has asserted that Pakistan’s risk of default has increased, urging the government to take steps to avert the looming threat, ARY News reported on Tuesday.

In an interview with a private news channel, Miftah Ismail noted that during his tenure as finance minister, he took difficult decisions with the assurance of Prime Minister Shehbaz Sharif.

The PML-N leader further claimed that Pakistan’s default risk would not subside until the International Monetary Fund (IMF) came to the table.

“IMF is the lender of last resort and when it comes on board, other lenders like the World Bank (WB) and Asian Development Bank (ADB) agree to provide loans,” Miftah noted.

However, he said, if that connection with the IMF breaks or a programme is suspended then other loans stop as well. Miftah believes the path on which Pakistan was heading might take the country towards default, urging the government to take immediate steps.

Miftah Ismail warned that Pakistan has gone back into jeopardy and the situation would not get better until IMF comes to the table.

A day earlier, finance minister Ishaq Dar strongly criticised Pakistan Tehreek-e-Insaf (PTI) for peddling a ‘false narrative’ about the country’s economy, assuring that Pakistan would not default.

Addressing a press conference alongside Prime Minister Shehbaz Sharif and other members of the federal cabinet, the finance minister said that some elements were peddling a false narrative that Pakistan was about to default or might have already reached that point.

Ishaq Dar said PTI installed “land mines” in terms of economy as they did not meet the commitments made with the International Monetary Fund (IMF). “But despite PTI’s bad policies, we quickly move the Fund and take unpopular decisions for the economy’s revival,” he added.

Speaking of the current challenges, Ishaq Dar said that the desire of the country’s default by the opposition will never be true and that there’s no reason for Pakistan to default.