Miftah Ismail says ‘Pakistan still facing default risk’

Former finance minister Miftah Ismail has reiterated that Pakistan is still facing the default risk and cruciality of reviving the International Monetary Fund (IMF) loan programme, ARY News reported on Monday.

While talking to the ARY News programme ‘Khabar’, Miftah Ismail said that the revival of the IMF loan programme is the only solution to prevent Pakistan from facing default. He said that the national economy can only survive two to four months but it is inevitable to reach out to the IMF.

He added that Pakistani bonds are being sold in the global market at discounted rates and now the country has no option other than the IMF agreement. Ismail said that the IMF agreement will conclude in June and the default risk will be increased.

READ: Miftah Ismail holds govt responsible for ‘delay’ in IMF deal

The former finance minister said that the government’s strategy is completed failed to revive the IMF programme in eight months. “The finance ministry is just making tall claims for the past six months but the IMF [staff-level] agreement is not signed yet despite implementing all conditions.”

Miftah Ismail further said that Pakistan cannot escape from facing default without the IMF loan. “If IMF agreement is not signed in June, then the ADB loan will be restricted.”

“It is necessary to sign the IMF agreement and acquire funds from China. We have to contact friendly countries to find out a solution to revive the economy. We are trapped and a single party cannot be blamed for this crisis,” said Ismail.

READ: Ishaq Dar loses his cool over ‘tough’ questions on economy

Yesterday, Finance Minister Ishaq Dar said that Pakistan will overcome the economic crisis with or without the International Monetary Fund (IMF).

While talking to a private news channel, Ishaq Dar said that Pakistan will not default with or without the IMF. He added that foreign powers are surprised that Pakistan does not default so far.

He claimed that former prime minister Imran Khan had destroyed the national economy after coming into power. He added that Imran Khan’s government got a $100 billion market from the previous PML-N government but it was destroyed and Pakistan had nearly defaulted.

Dar said that IMF asked Pakistan to arrange $6 billion and a technical deal was signed to arrange $3 billion before and after the loan programme. He added that IMF MD had also confirmed that Pakistan will not default.

“We will try to avoid putting financial burden on common people in the next budget. We will bring discipline to the economy and resolve the economic issues. Pakistan has reserves worth $1,000 billion, hence, it should not compared to Sri Lanka.”