- Pakistan won’t default, according to Ishaq Dar
ISLAMABAD: Finance Minister Ishaq Dar reassured the nation on Wednesday that Pakistan was not on the brink of a financial crisis and emphasized that the country would not default. His remarks come at a time when concerns about default have been increasing due to declining remittances, dwindling foreign exchange reserves, and a prolonged delay in reaching an agreement with the International Monetary Fund (IMF) for the release of a $1.1 billion tranche from a $6.5 billion loan package.
Speaking at a gathering at the Federal Board of Revenue in Islamabad, the finance minister Ishaq Dar praised his economic team for their efforts and hard work. He highlighted that the country had recorded a current account surplus of $750 million in March and $18 million in April, indicating positive signs for the economy.
Addressing the ongoing negotiations with the IMF, Dar stated that his team had completed all the necessary technical work and prior actions required for the completion of the ninth review. He expressed his sincere efforts to fulfill the requirements of the IMF program and regarded the delay as unfortunate. He also mentioned that Pakistan had repaid $5.5 billion of its commercial loans, with China rolling over $2 billion once it understood that Pakistan had fulfilled its obligations for the release of funds by the IMF. Dar expressed optimism that a substantial part of the remaining $3.5 billion from non-Chinese commercial banks would be returned once the IMF’s staff-level agreement or board meeting was completed.
The delay in reaching an accord with the IMF has been a matter of concern. It has been over 100 days since the last staff-level mission to Pakistan, marking the longest gap in such missions since at least 2008. The IMF has stated that Pakistan requires significant additional financing for the successful completion of the ninth review. Securing commitments for this additional financing is crucial before the release of pending bailout funds that are necessary to address the country’s balance of payments crisis.
In recent months, countries such as the United Arab Emirates, Saudi Arabia, and China have extended support to Pakistan by providing pledges that would partially cover the funding deficit. These commitments have offered some relief and support to Pakistan’s financial situation.
Despite the challenges and the ongoing negotiations, Finance Minister Ishaq Dar remains confident in the country’s ability to navigate through these economic difficulties and avoid default. The government is actively working towards resolving the outstanding issues and securing the necessary financing to stabilize the economy.
To read more: Ask your people not to speak harshly in parliament, CJP Bandial tells AGP
