Pakistan Economy: Finance Minister Ishaq Dar has said that Pakistan’s economy is in a “tight condition”. The economic condition of Pakistan is very bad. Due to this there is a possibility of recession in Pakistan. The Finance Minister of Pakistan there has accepted all these things. However, Pakistan’s Finance Minister Ishaq Dar assured investors that there is no chance of Pakistan defaulting.
During the launch of Pakistan’s first development real estate investment trust scheme in the stock exchange, the Finance Minister said all these things to the investors in a program. “We are in a tight spot. We don’t have $24 billion in foreign exchange reserves, which our (previous) government released in 2016. But it’s not my fault. It’s the system’s fault,” Dar said.
default prediction wrong
The Finance Minister denied the prediction of Pakistan defaulting and said that it had already repaid its $1 billion in Islamic bonds in December. In such a situation, it is not possible that the country defaults. Citing international experience, the State Bank of Pakistan has said in its annual report that nations prioritizing growth over pricing and financial stability are unable to sustain growth and are facing financial crisis.
The growth rate will remain so
Moreover, the Central Bank of Pakistan had said that the hike in FY23 would be less than the lowest limit. Additionally, it was said that the growth rate would remain below 3-4 per cent. The SBP report said that there is room for improvement in the information coverage and punctuality of Pakistan, as the annual GDP growth forecast is crucial for the country’s development.
foreign exchange deficit
The finance minister had earlier said in December that while asking Riyadh to increase the existing deferred oil payment facility to $2.4 billion annually, Pakistan was also seeking financial assistance from Saudi Arabia. He said that due to low foreign exchange reserves, there has been a decrease in one month’s imports.
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