Ishaq Dar stresses upon IMF to deal with Pakistan like a member & not a beggar

ISLAMABAD, June 11 (SABAH): Minister for Finance and Revenue Senator Mohammad Ishaq Dar has stressed upon the International Monetary Fund (IMF) to deal with Pakistan like a member and not as a beggar. He said they were not beggars but a member of the Fund, which is why they must be dealt like a member. He said the decision to delay the bailout program for the country is totally unfair and that the global lender has also contributed to the economic turmoil in his country.

During an interview with a private TV channel, Mohammad Ishaq Dar said that IMF had no reason to delay in striking a deal and if this did not happen then they would arrange 22 to 25 billion dollars for the next financial year and added the country had already passed through restrictions period while working on Plan-B which is why this is non-issue. “God-willing Pakistan would not default. We did not allow bankruptcy of the country even in the worst days,” he added.

He further said that the undue delay by the IMF in signing the staff-level agreement with Pakistan had pushed the country towards economic turmoil but they were able to tackle this situation, and added that they didn’t present the current budget in the light of coming general elections but on the basis of growth.

He further said that the government focused on IT, agriculture, SMEs and growth drivers and deplored if the country would have restricted itself in financial discipline the situation would have been much better. “If some people would have listened to me before five years, we have would have not been in such a quagmire,” he added. 

“We should have not consumed money in the sectors where we could not afford, we would have not been in such deteriorated situation today. Allah Almighty has bestowed very wise leadership to Pakistan and all are determined to run the country while remaining within our resources,” Ishaq Dar said.

He said that total debt and liabilities have reached Rs 49400 billion from Rs 25,000 billion during the four years while the situation further deteriorated due to rupee devaluation which is the reason behind the tornado of inflation, he said. “We have talked many times that this is vicious circle. To control it, policy rate was increased which is 21 percent at present. Government was working on debt servicing pitch for the next financial year,” he added. 

The federal finance minister went on to say, “We have devastated our macro economic structure which needed to be put on right direction. We need to abide by strict financial discipline to rectify the situation otherwise someone would have to pay price for it and that I have paid its price for two times in the past.”

Ishaq Dar said that Pakistan’s economy reached at 47^th number from 24^th number in last four years and added that IMF deal should have been signed. “I have been dealing IMF since last 25 years. This program has been delayed without any reason. We have met all the requirements. If we combine the ninth and 10^th review then perhaps we may miss the ninth installation,” he added.

He said that the government has announced a tax-free budget and tried to facilitate all the sectors while not levying further taxes. “When I left, then there was 70 billion dollars external debt which raised to 100 billion dollars. By including all the debt and liabilities, it would be 130 billion dollars,” he added.

Ishaq Dar said that IMF is issuing loan in double digits to some country and is not issuing $1 billion to Pakistan, adding that indirect inconvenience faced by us, economic losses, harm to credibility, perception, markets and currency is more then the total IMF program.

Ishaq Dar said that the government is taking necessary measures to re-negotiate with International Monetary Fund on more favorable terms and conditions.

Ishaq Dar expressed hope that the IMF would be satisfied with Pakistan’s progress, as the country has fulfilled the necessary requirements.

Ishaq Dar expressed optimism that Pakistan would achieve the growth rate set by the government, indicating a positive outlook for the nation’s economic development in the coming year.

The Finance Minister said the federal government has given a massive relief to the salaried class in the new budget by announcing 35 per cent ad-hoc relief allowance for its employees in grade one to 16 and 30 percent for employees in grades 17 to 22.

Reply to a question, he criticized the previous government of Pakistan Tehreek-e-Insaf for formulating weak policies.

He said these policies caused significant difficulties for masses in their daily lives, leading to financial constraints for the country. Ishaq Dar said that the government has allocated Rs 42 billion for the Election Commission of Pakistan for holding general elections at once in the country, adding that after completion of the tenure of the government elections could not be held prior to 56 days. He said that if assembly is dissolved prior to completion of the tenure then ECP will have to hold the elections within 90 days.