ISLAMABAD (National Times) – Federal Finance Minister Muhammad Ishaq Dar on Wednesday claimed that he could prove that Pakistan won t default on economic front.
“Whatever tough circumstances Pakistan is facing nowadays, let me assure you that Pakistan will never default,” he said while addressing a gathering of investors at the Pakistan Stock Exchange (PSX) through a video link. He said some elements negatively propagated about default and spread dissappointment among the people, adding that he was not repsonsible for economic games played before him.
The minister said the current government would complete the IMF programme in line with its past practice, adding that efforts would be made to complete the programme second time. “The government had to face devastating floods side by side with the IMF programme,” he said.
“I have been hearing since I became finance minister that Pakistan is going to default,” he said and categorically stated that there was no risk of financial collapse. While assuring investors that Pakistan would survive, he admitted that the economy was in a difficult position.
Lashing out at the previous government of the PTI, he said the rumours about the default were being fanned by those who brought the country to this point. He said the former government completely neglected the stock market and the Securities and Exchange Commission of Pakistan (SECP), adding that both played a key role in boosting economy of the country.
Regarding policy rates, Dar said the country’s policy rate, which is at a 24-year high of 16pc, should be reduced. He cited Turkey’s example where inflation was over 60pc but the policy rate was at 9pc.
The minister said the country’s debt-to-GDP ratio was 74pc while the US’ was 110pc and the UK’s 101pc. “I can name a dozen Western countries whose debt-to-GDP ratio is above 100pc but nobody there says we are in difficulty and a debt trap,” he maintained.
During his address, Dar congratulated Arif Habib Dolmen REIT Management Limited (REIT Manager) and Javedan Corporation Limited (offeror) over the successful listing that was oversubscribed by 300pc.
He said that Pakistan offered immense potential in REITs.
