KARACHI The Finance Minister, Ishaq Dar, told investors on Wednesday that “there’s no way Pakistan is going to default,” although he admitted that there was a problem with the economy. Dar dismisses the ‘default message.
“We’re in a precarious position. There’s not $24 billion in foreign exchange reserves, which we had when our (last) government sank in 2016. It’s not because of me.At a gathering honouring the formal listing of Pakistan’s first development trust scheme for real estate investment at the market, the investor declared. “It’s the system’s fault.
Mr. Dar also assailed “pseudo-intellectuals” for raising the specter of sovereign default even though the country repaid. Its $1 billion Islamic bond before maturity early this month.
“There’s no way Pakistan is going to default,” the president repeatedly stated in his generally retro-looking speech through a video link.
Mr. Dar’s criticism of Dr. Miftah Ismail. Who has a Ph.D. in economics and advocated for the possibility of defaulting in his daily articles and televised appearances since leaving office in September. Is based on his use of the term “pseudo-intellectuals. “We’re hurting the country over petty politics we’re our own worst enemy,” he declared.
Based on the awe-inspiring praise from earlier speakers for his claimed financial acumen. Mr. Dar gave himself slap on the shoulder for helping to stabilise Pakistan’s economy in the years 1998, 2008, and 2013.
In his speech, he provided statistics regarding inflation, the key interest rates, foreign direct investment, and the share benchmark. He said his economy had been in good form when the PML-N was in office in 2017.
The business community was asked to take responsibility for the gang of politicians that governed the PML-N’s last government in office.
The last time Pakistan completed the International Monetary Fund (IMF) loan program was when its PML-N regime ran it. His spokesperson claimed and vowed to meet all IMF requirements this time too.
Invoking a populist tone Dar, however, Dar stated that Pakistan should not become “hostage” to the dictates of other countries. “We should not put additional burdens on the people in the event that we cannot provide them relief. We’ve fulfilled our promise to eliminate the petroleum development levy while decreasing the cost of petroleum triple,” he said.
External accounts are the most challenging issue, which is why the federal government has been working to improve it, He declared. “We’ve discovered more resources from the outside and flows. We’ll be in a better position about external accounts and reserves at the close of the fiscal year,” he added.
The finance minister attributed the easing of some import restrictions on necessities to a notice delivered by central banks day earlier.
“Our ultimate goal should be to avoid going to the multilateral.” He added that Pakistan ought to be ideal in a position to gain access to funds via the international debt market.
On a worrying note, he claimed that the interest rate used to determine the principal in Turkiye is only 9pc. The inflation rate is hovering around 60 percent.
Mr. Dar is renowned for being a staunch supporter of keeping interest rates low despite growing inflation. The stance goes against conventional economic thinking.
He added that inflation within Pakistan has been imported into the country and tied to devaluation. Saying that the central bank, as well as its committee for setting interest rates, have been declared “autonomous.”