Shabbar Zaidi claims ‘Pakistan cannot avoid default in 2024’

Former Federal Board of Revenue (FBR) chairman Shabbar Zaidi claimed Tuesday that Pakistan cannot avoid default in 2024 and the current government is just deceiving the nation, ARY News reported.

While talking to the ARY News programme ‘11th Hour’, Shabbar Zaidi said that the federal government is going to unveil the budget on June 9 but the International Monetary Fund’s (IMF) programme is not yet finalised.

He said that Pakistan cannot repay debts despite the revival of the IMF programme after June. He claimed that the country cannot make internal and external debt repayments till 2028.

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

“Pakistani authorities will have to conduct re-profiling of the external loans. The Fund is ready to re-profile the external debts and sought a written assurance from the government.”

“سال 2028 تک پاکستان اپنے قرضہ جات واپس کرنے کے قابل نہیں ہے۔۔” ماہر معاشیات شبر زیدی نے تلخ حقائق بتا دیے#ARYNews #11thHour pic.twitter.com/EFgZdMH4t0

— ARY NEWS (@ARYNEWSOFFICIAL) May 30, 2023

“The incumbent government is fooling the nation for eight months as Pakistan cannot avoid default in 2024. When Sri Lanka faced default, the dollar price had reached the value of Rs390. The dollar price in Pakistan is now standing at Rs310.”

The former FBR chairman said that it would be failure of the economic team if prime minister is holding talks with the IMF.

Dar rejects default risk

Finance Minister Ishaq Dar said on Tuesday that Pakistan’s agreement with the International Monetary Fund (IMF) for the programme’s 9th review has not been finalised yet.

While addressing an event at the Federal Board of Revenue (FBR) headquarters, Finance Minister Ishaq Dar said that everyone is aware of the country’s situation and discussions regarding Pakistan’s default had also happened in the past.

READ: Miftah Ismail says ‘Pakistan still facing default risk’

“During [the previous tenure of] PML-N government, we stabilized the national economy within three years. Rupee was stable and financial institutions acknowledged the economic status of Pakistan. In 2017, Pakistan was going to become the 24th strong economy in the world which unfortunately fell to 47th number in 2022.”

“We do not have to fall into a blame game but we have to take the country forward. The previous government reversed the economic progress. We are trying to finalise a public and business-friendly budget. We were bound to take tough decisions due to the wrong policies of the PTI government.”

“For staff-level agreement, we have fulfilled all conditions set by the IMF. However, the programme’s 9th review is still pending. We are continuously making efforts to improve the economic situation. It is a difficult time for the economy but there is no need to worry.”

The finance minister said that an untoward incident occurred in Pakistan whenever the country is making progress. He vowed that the government will give maximum relief to the nationals in the next budget.

On Sunday, Dar said that Pakistan will overcome the economic crisis with or without the International Monetary Fund (IMF).