Ishaq Dar says Pakistan would not default, even if a stalled loan programme with IMF was not revived

ISLAMABAD, May 11 (SABAH): Minister for Finance and Revenue Senator Mohammad Ishaq Dar emphasised on Thursday that Pakistan would not default, even if a stalled loan programme with the International Monetary Fund (IMF) was not revived. He said that the government has ensured all the external payments till December.

Ishaq Dar made the comments while addressing the delay in signing a staff-level agreement (SLA) with the IMF for the release of a crucial economic bailout, during his address at the concluding ceremony of two-day Islamabad Security Dialogue at Pak-China Friendship Centre.

Earlier this week, Moody’s Investor Service warned that the country could default without an IMF programme as its foreign exchange reserves were “very weak”.

Prior to that, Fitch Ratings also said that risks are large and a default or debt restructuring was an “increasingly real possibility” for Pakistan.

However, Ishaq Dar said “rumours” about Pakistan defaulting on its debt obligations should not be spread. “Whether [the deal with the] IMF is [there] or not, Pakistan will not default,” he asserted.

The financial czar also said Pakistan had fulfilled all conditions and taken steps towards reaching an agreement with the international lender for reviving the stalled loan programme.

“International politics based on injustice with Pakistan should be ended. Internationally, people are amazed at how Pakistan is managing,” he added.

Ishaq Dar added that Pakistan had to pay debts amounting to $3.7 billion till June, adding that Pakistan would fulfill all promises and make payments on time.

Technical discussions with the IMF ended on February 9 and there was a “gap” on the matter of the external account, he said. “If the IMF wants more time for the staff-level agreement, it can take it. The [external debt repayments] in May and June will be done on time,” he reiterated.

International rating agencies should not discuss Pakistan’s default, he said, adding that financing would be arranged for payments in the current fiscal year as friendly countries had promised help.

Ishaq Dar reiterated Pakistan’s commitment to promote regional connectivity through mutual cooperation. He said Pakistan is committed to accelerate trade in the region.                                          

The Minister said Pakistan believes in friendly relations among all neighboring countries for mutual benefit of all peoples.                                

He said the Ukraine War and US-China trade war have adversely affected the international economy.