HomeWorldPakistan no longer faces default risk, claims minister

Pakistan no longer faces default risk, claims minister

The country’s junior finance minister has said Pakistan does not face default risk amid claims by former prime minister Imran Khan that the cash-strapped nation is staring at default and on its ninth review of USD 7 billion with the IMF. Formal talks are getting delayed. loan program.

“Is Pakistan going to default,” Minister of State for Finance and Revenue Aisha Ghaus Pasha assured the nation on Friday when asked a direct question to Pakistan Peoples Party’s (PPP) Musarat Rafiq Mahesar in the National Assembly, Dawn newspaper reported. ?” Saturday.

There are also reports about a delay in formal talks with the IMF on the ninth review of the $7 billion loan programme.

“…there is no such possibility. Yes, we were worried when we took over the government [in April] Because at that time the IMF program was suspended and the avenues for us to get external finance were closed,” the minister said.

However, she claimed, the situation has improved a lot after the government took some “very difficult decisions” and revived the IMF programme.

Pasha said it was a fact that in the past the country was unable to borrow money from other multilateral and bilateral agencies and even the commercial market to meet its external needs due to the suspension of the IMF programme.

Read more: Amazon’s Jeff Bezos faces backlash over ‘cash some cash’ advice to Americans

However, he added that after the seventh and eighth successful reviews of the IMF programme, Pakistan was in no immediate danger of default. Instead, he claimed that the country’s exports had improved, foreign remittances were coming in and foreign direct investment was improving.

The minister said that Pakistan is now on its way to the IMF and is committed to its programme.

In response to another question, Pasha informed the House that currently 50 per cent of Pakistan’s economy is estimated to be undocumented. However, citing various research studies, he said that the size of Pakistan’s informal economy was estimated to be 35.6 per cent.

He said that according to the World Bank, the informal sector was one-third of the country’s GDP (Gross Domestic Product).

He said that efforts are being made to increase the size of the formal economy, adding that a well-structured taxation policy and its effective enforcement can play an important role in achieving this objective. The government was making every effort to bring reforms in the tax collection system to generate maximum income to create facilities for the tax payers.

The minister stressed the need to develop a civic sense in every Pakistani so that he/she pays taxes honestly.

He lamented that Pakistan’s tax-to-GDP ratio was only 9 per cent, which was considered low in the world.

Dawn also reported that in a written reply to a question by another PPP MP Shamim Ara Panhwar, Finance Minister Ishaq Dar informed the House that the country’s foreign exchange reserves as on November 4 were worth USD 13,721.9 million. Foreign exchange reserves held by the State Bank stood at USD 7,957.9 million and by commercial banks at USD 5,764 million, he said.

Responding to questions about the country’s foreign debt, Economic Affairs Minister Sardar Ayaz Sadiq told the House that the previous Pakistan Tehreek-e-Insaf government had taken a loan of USD 47,105.85 million between August 2018 and April 2022.

Author
Authorhttps://searchnews.in
Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

- Advertisment -