New govt won't face economic difficulties till Dec: Ishaq Dar

ISLAMABAD: Finance Minister Senator Ishaq Dar said on Monday that the new government would not face economic difficulties till December 2023.

Ishaq Dar said in a statement that the government should have focused on enhancing exports. “Even my own team members were not sure about the agreement [with the International Monetary Fund]. I had already told everyone that the agreement would be signed in the last week.”

“We have to receive $2 billion from Saudi Arabia and $1 billion from the United Arab Emirates (UAE), whereas, we are expected nearly $5.6 billion in July. The country’s reserves will reach $14 billion in July.”

Dar said that the country needs to adopt discipline in its financial matters other than democracy. He predicted that the projected current account deficit is $4 billion.

READ: IMF agreement: Pakistan not allowed to offer tax amnesty

The finance minister confirmed that Pakistan would receive $1.1 billion from the IMF after the standby agreement which is equivalent to the 9th review.

He said that the government could have established an industrial zone on the Pakistan Steel Mills (PSM) land. He admitted that Pakistan International Airlines (PIA) is causing annual loss of Rs70 billion.

Ishaq Dar predicted that inflation rate will be dropped in the coming days, whereas, the electricity prices would vary from Rs3.5 to Rs4 per unit.

Regarding the Pakistan Muslim League Nawaz (PML-N) supremo, Dar said that Nawaz Sharif can contest the election as five years have passed after his disqualification.

Last week, Pakistan signed $3 billion staff-level agreement with the International Monetary Fund (IMF) following the conclusion of staff-level agreement.

As per details, the government of Pakistan and IMF $3 billion staff-level agreement was signed in a ceremony held in Lahore.

Read more: Pakistan signs $3bn staff level agreement with IMF

Prime Minister Shehbaz Sharif, Finance Minister Ishaq Dar and Information Minister Marriyum Aurangzeb were present at the ceremony

International Monetary Fund (IMF) announced that a “Stand-By Arrangement” between the global money lender with Pakistan has been reached successfully.

IMF Mission Chief Nathan Porter along with his team maintained continuous communication with Pakistani authorities and completed the agreement through virtual negotiation.

The final approval of this agreement will be given by the IMF’s executive board, which is expected to take place in mid-July. After this approval, Pakistan can receive a loan of $3 billion.