September 20, 2022
2 mins read

Pakistan won’t default despite floods: Minister

Ismail’s statement comes at a time when Pakistan is affected by the devastation, destruction and mass displacement of at least 33 million Pakistanis…reports Hamza Ameer

Pakistan’s Finance Minister Miftah Ismail has said that despite the catastrophic floods, which have led to new major challenges, the country will not default nor will there be any deviation from reform policies and designs, made to stabilise the crippled economy.

“The path to stability was narrow, given the challenging environment, and it has become narrower,” the Minister said.

“But if we continue to take prudent decisions, and we will, then we are not going to default. Absolutely not.”

Ismail’s statement comes at a time when Pakistan is affected by the devastation, destruction and mass displacement of at least 33 million Pakistanis.

As per estimates, the total damages due to the catastrophic floods so far have already cross $30 billion and are expected to go increase in the coming days and weeks.

The impact has further damaged the already crippling and reeling economy of the country with its currency on a free fall against the US dollar.

But the Finance Minister believes that the stabilization policies and targets remained on track.

“We were able to bring an International Monetary Fund (IMF) programme back on track after months of delay, thanks to the tough police decisions. Despite the disaster of catastrophic rainfall and floods, there will be no major deviation from reforms designed to stabilize economy.

“Most stabilization policies and targets were still on track, including increasing dwindling foreign exchange reserves,” he added.

The Minister’s claims however,do not reflect on the current standing of Pakistan as its Central Bank reserves stood at about $8.6 billion, despite the release of $1.12 billion in IMF funding during August this year.

The current reserves are only enough to handle and cater to about a month of imports.

However, Ismail believes that Pakistan will be able to increase its reserves by $4 billion, even if the floods affect the current balance in terms of more imports of cotton.

“Yes, there has been substantial loss to the very poorest people and their lives will never be made whole again. But in terms of servicing our external and local debt, and being micro-macro-economically stable, those things are under control,” he said.

While the Finance Minister conceded that the country’s credit default risk has gone up, he expressed hope that the coming days will bring in more normalcy in the market after the global market realizes that Pakistan is committed to being prudent.

ALSO READ: Flood-hit Pakistan warned of ‘second disaster’

Previous Story

Hasian vows free, fair polls

Next Story

Islamabad guards CPEC reality better than state secrets

Latest from -Top News

Jaishankar Pays Tribute to Kanishka Victims

Jaishankar emphasised that the anniversary of the attack is a “stark reminder of why the world must show zero tolerance towards terrorism and violent extremism.”….reports Asian Lite News On the 40th anniversary

Taliban Severs Oil Deal with China Amid Growing Friction

Several countries have recently withdrawn from Chinese-funded infrastructure and resource deals, citing quality concerns, lack of transparency, and limited benefits for local populations….reports Asian Lite News The Taliban has cancelled a $540

Qatar Summons Iran Envoy Over Base Strike

Qatar’s Ministry of Foreign Affairs affirmed to Iranian Ambassador Ali Saleh Abadi that it reserves the right to respond to this flagrant violation in accordance with international law. Qatar on Tuesday summoned

India Targets Terror at SCO Meet

In addition to addressing the plenary, Singh will hold bilateral meetings with his counterparts from several participating nations, including China and Russia….reports Asian Lite News In a renewed diplomatic offensive against Pakistan-sponsored

Middle East Shutdown Disrupts Kerala Flights

With the Israel-Iran ceasefire easing tensions, airlines have begun rescheduling flights, bringing relief to stranded travellers….reports Asian Lite News A sudden closure of airspace over parts of the Middle East late Monday
Go toTop

Don't Miss

Pak biz house seeks revival of trade with India

Mian Muhammad Mansha, chairman of Nishat Group said that trade

Pai invests in Monster.com

The online talent platform said that the funds will be