Pakistan will not default, reiterates Ishaq Dar

Finance Minister Ishaq Dar on Wednesday reiterated that Pakistan will not default and the country will escape the current difficult economic circumstances.

Speaking to the business community at the Federal Board of Revenue (FBR), he admitted that external financing was a huge challenge for Pakistan.

“After many years, Pakistan recorded a current account surplus in March and April 2023 and gave the global economy a surprise,” he said. “Many nations were sure that Pakistan would default but let me make it clear that Pakistan will not default.”

He stated that the government continues to make all-out efforts to escape the difficult economic conditions that have gripped Pakistan.

Speaking about the stalled International Monetary Fund (IMF) programme, he stated that the country completed all technical formalities of ninth review.

“It is unfortunate that the beginning of this review got delayed by 3 months but we completed all prior actions,” he said.

On Tuesday, the FBR assured the business community of taking up their budgetary proposals with Dar to incorporate them into the federal budget for the next fiscal year.

This assurance was held out by the FBR Member Inland Revenue (Policy), Afaq Ahmed Qureshi.

Qureshi said that these proposals by different chambers were also submitted to the FBR and some of the proposals are very good. “We will take these proposals to the finance minister,” he added.

Pakistan is moving through a rough economic phase given rampant inflation, plant shutdowns, unemployment, stalled IMF programme, rupee depreciation and depleting foreign exchange reserves.

At such a point, resumption of IMF programme can prove to be respite for troubled economy.