‘Pakistan to not get funds from friendly countries until IMF programme revival’

Former finance minister Shaukat Tarin claimed on Thursday that Pakistan will not be able to get funds from friendly countries until the revival of the loan programme with the International Monetary Fund (IMF), ARY News reported.

While talking to the ARY News programme ‘11th Hour’, Shaukat Tarin said that Pakistan earns dollars through exports, remittances and loans. He said that the government will have to make effective policies for the enhancement of exports and remittances.

He said that unfortunately, Pakistan’s exports have dropped up to 16 per cent and remittances up to 19 per cent, whereas, the foreign direct investment (FDI) was minus $17 million nor the country is receiving foreign loans.

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Tarin said that the government is unable to pay in dollars to the traders when it is running out of reserves the State Bank of Pakistan (SBP). Shedding light on the grave economic situation, he said that the friendly countries and commercial banks are not giving funds to the country as they put a condition on the revival of the IMF programme.

He criticised that the incumbent government dug up its own grave and the rulers accepted the IMF’s pressure. He questioned why the government made the agreement with the IMF on the condition of imposing Rs800 billion petroleum development levy (PDL).

He said that the IMF is now demanding the fulfilment of the promises made by the Pakistani government. Tarin said that the government failed to collect Rs800 PDL, whereas, the recovery rate was 10 per cent low.

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He said that the IMF conditions were also mentioned in the Donors’ Conference. The former finance minister said that betters have activated for the valuation of the US dollar. He said that the dollar value should be undervalued in the exchange rate.

Tarin suggested the government disburse dollars to the businesses which will stop the betting, whereas, the opening of Letters of Credit (LCs) will also reduce the dollar price from Rs275.

He said that Pakistan has entered technical default as over 7,000 containers were not being cleared at the country’s ports due to restrictions on LCs nor funds are being given for the airlines’ tickets and freight charges.

He said that Pakistan will not get funds from friendly countries until the revival of the IMF programme which will improve the economic situation.