Some people like to give dates that Pakistan will default on so & so date — they should be ashamed: Ishaq Dar
ISLAMABAD, June 03 (SABAH): Minister for Finance and Revenue Senator Mohammad Ishaq Dar has said the government after presenting budget will come up with new ideas in the weeks to come for the long term economic improvement. Ishaq Dar “reassured” the nation that Pakistan will not default and promised that the government had planned reforms for the country’s “long-term betterment”. “Some people like to give dates that Pakistan will default on so and so date — they should be ashamed. They should be well-wishers of Pakistan and be loyal to their soil. “Pakistan is a sovereign country. Pakistan has trillions of dollars of assets. If we have external debts of 100 billion, we also have assets,” he maintained. Ishaq Dar said that one asset relating to gas infrastructure was equivalent to 50 percent of Pakistan’s debt.
Talking to a delegation of Karachi Chamber of Commerce and Industry (KCCI) headed by Zubair Motiwala at the Federal Board of Revenue (FBR) Headquarters on Saturday, Ishaq Dar vowed to collectively steer the country out of current economic challenges. Recounting the economic difficulties the country faced in 2014, the minister said that one year was difficult but then “everything was normal once things had settled down”.
The PML-N leader went on to claim that Pakistan had become the “best economy in South Asia” and the policy rate was 6.5pc when the PTI government took over.
According to Dar, there were “only two options” available with the parties currently in power when they took over in 2022 — either to “let the previous government stay [in power] and wait for complete destruction to take place, god forbid or to take a bold decision”.
Admitting that the government knew it would not be easy to deal with the economic crises, the minister said they took the difficult decision of “taking responsibility […] no matter the loss to the political capital”.
He then asserted that the “most difficult reforms have taken place” and expressed hope that there would be no issues in multilateral dealings as well. Ishaq Dar said the government has taken several measures to stabilise the economy.
“What happened in the past has badly affected Pakistan’s reputation. However, the government is doing its best. We are well aware of the burden being put on the business community and the common men.”
He admitted that the country is passing through a difficult period but assured the business community that Pakistan would overcome these challenges as a nation. “But the recovery will take time.”
Ishaq Dar also recounted his previous achievements to improve the economy when the Pakistan Muslim League-Nawaz (PML-N) came into power in 1999 and 2013.
The PML-N leader lamented the political instability in the country and held it responsible for the economic crisis. “Most difficult reforms have already been carried out. Whatever bleeding had to happen, had already taken place.”
While speaking about the delay in the IMF programme revival, which he called “unprecedented”, Dar noted that there’s no technical reason for it.
“Our top priority is to ensure all sovereign commitments are made on time and there must not be a delay even for a day. And it didn’t happen. But some people have this habit of giving dates of Pakistan’s default. I have been hearing that for the past year.”
Ishaq Dar said, “They should be ashamed. You should be well-wisher of your country and you should be loyal to your soil.” Ishaq Dar, however, rubbished the claims that the country would default and admonished the former finance minister without mentioning his name. “Rather than giving people hope and giving them confidence, now there’s a new prediction for default in October.
The Finance Minister said we will bring agriculture revolution, establish a sovereign wealth fund and the IT sector will be focused. He said we will do the things which were ignored in the past. Ishaq Dar said the delay in the IMF program is unprecedented as there is no technical reason behind it.
The Finance Minister once again ruled out the default and regretted the statements being made by certain elements within the country in this regard. He said Pakistan is a solvent country having assets worth trillions of dollars. He said our external liabilities are around one hundred billion dollars but at the same time our only one asset of gas infrastructure is about forty to forty five billion dollars. He said there is no need to worry.
The Finance Minister asked the business community to put forward their reasonable demands with regards to the upcoming budget, assuring the government will cooperate with them.
Ishaq Dar appreciated KCCI in its pivotal role in the promotion and growth of the economy. FM further assured that Government will seriously consider their budget proposals and provide all possible assistance to the business community for ease of doing business and removal of their difficulties.
Meanwhile, talking to delegations of Pakistan Business Council and Overseas Investors Chamber of Commerce and Industry, the Finance Minister assured that the genuine and realistic demands of the business community vis-a-vis the budget will be entertained according to the economic space available.
He said the budget will be presented on Friday next. He said government has delivered on all sovereign commitments at a huge political cost.
He said we are currently in consolidation phase and expressed the resolve to sail through the difficult times with collective efforts.
Ishaq Dar said that the government will present budget for financial year 2023-24 on 9th June. He said the economic challenges faced by the country will be overcome soon. He said that the business community along with informing about the problems being faced by it should also present suggestions regarding next budget. He said that suggestions presented by Pakistan Business Council regarding budget will be welcomed. He said that the government is making all out efforts for brining improvement in the economic circumstances of the country.