'Pakistan has gone bankrupt', claims Khawaja Asif

SIALKOT: Pakistan Muslim League-Nawaz (PML-N) senior leader and Defence Minister Khawaja Asif claimed on Saturday that “Pakistan has already defaulted and we are living in a bankrupt country,” ARY News reported.

The federal minister made these remarks while addressing a ceremony in his hometown Sialkot.

“You may have heard many people talking that Pakistan will go default or a meltdown will take place, but I want to say that Pakistan is not defaulting, it has already happened and we have to stand on our feet,” said Asif.

While presenting a solution to address economic woes, Khawaja Asif further said that golf clubs were built on 1500 acres of government land and Pakistan can pay off a quarter of its debt by selling two of its golf clubs.

The defence further said that the solution to all problems exists in the country but we are looking towards International Monetary Fund (IMF).

Khawaja Asif’s remarks have sparked strong criticism from various PTI leaders including Fawad Chaudhry and Shiren Mazari.

ایک طرف شوکت ترین پر غداری دوسری طرف خواجہ آصف جیسےاصل دشمن ملک سے کھل کھیل رہے ہیں ، اس شخص کا وزیر دفاع ہونا سیکیورٹی رسک ہے اسحق ڈار اس بیان کی فوری وضاحت کریں https://t.co/ezoepGCiRC

— Ch Fawad Hussain (@fawadchaudhry) February 18, 2023

“Defence Minister of imported government admits that Pakistan is already in default. In 10 months they have brought Pak to this sorry state,” Mazari wrote.

Defence Minister of Imported govt admits that Pakistan is already in default. In 10 months they have brought Pak to this sorry state – Shameless lot selling out the country & holding on to power instead of letting nation choose their ldrs thru elections. pic.twitter.com/IHbREnbAhK

— Shireen Mazari (@ShireenMazari1) February 18, 2023

IMF deal

Pakistan was eyeing to reach an agreement with the International Monetary Fund (IMF) that would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.

The International Monetary Fund (IMF) and Pakistan moved closer to the revival of $7 billion Extended Fund Facility (EFF) as the lender responded to the Memorandum of Economic and Financial Policies (MEFP) draft.

According to details, the Fund has responded to the Memorandum of Economic and Financial Policies (MEFP) draft – sent by officials of Ministry of Finance and Revenue.

Federal Minister for Finance and Revenue Senator Ishaq Dar tabled introduced Finance (Supplementary) Bill 2023 or the “finance bill” in the National Assembly.

Addressing the lower house of parliament, the finance minister had announced to increase General Sales Tax GST rate from 17 to 18% and increasing the Federal Excise Duty (FED) on cigarettes.

Finance Bill proposals

Govt has increased GST on luxury items from 17% to 25%
Increase in federal excise duty on cigarettes and fizzy drinks.
Increase in federal excise duty on cement
GST has been increased from 17pc to 18pc
Benazir Income Support Programme (BISP) handouts increased to Rs400bn from Rs360bn
FDE on business and first-class air tickets to now be Rs20,000 or 50% — whichever is higher
GST to not be imposed on essential goods

SBP reserves

According to a statement issued by the central bank, the foreign exchange reserves held by the SBP were recorded at $3,192.9 million as of February 10, up $276 million compared with $2,916.7 on February 3.

Meanwhile, the net foreign reserves held by commercial banks stood at $5.5 billion, bringing the country’s total liquid foreign reserves to $8.7 billion. However, the central bank did not mention any specific reason behind an increase in SBP-held reserves.