Finance Minister Ishaq Dar assured investors at the Pakistan Stock Exchange (PSX) on Wednesday that the country would not default but admitted that the economy was in a “tight position”.
In his address, the finance minister said he always believed that Pakistan had a prosperous future and that its economy had “resilience”. However, he lamented that it is unfortunate that the country has been brought to a point where it should not be.
“It has been three months since I took charge and every day we hear that there is going to be a default. How will there be a default? There is no possibility that Pakistan will default,” the finance minister assured investors.
Dar assured that Pakistan would survive and take care of itself but acknowledged that the economy was in a “tight position”.
He added that the country does not have the reserves of $24 billion that Pakistan Muslim League-Nawaz (PMLN) left in 2016 but it was not their fault.
The finance minister said that there is a flaw in the system and we should ensure that Pakistan moves forward.
Dar said that as the country’s bond repayment approached, a “rhetoric” was started that Pakistan would not be able to fulfill its promise. He added that despite the payment of bonds, “pseudo-intellectuals” continued to claim.
Expressing regret, he said that these rumors were started by the same people who brought Pakistan to this point.
Be aware, don’t listen to them. Spread information that Pakistan will not default. I can prove to anyone that Pakistan will not default,” said the finance minister.
The finance czar said the country was being damaged for “petty politics and motives”.
To prove his point, the finance minister said Pakistan’s debt-to-GDP ratio was 72 percent as against 62 percent when he left charge in his last term.
He also gave examples of other countries to further prove his point that US has a debt to GDP ratio of 110%, Japan is 257% and UK is 101% post-Covid.
“I can give you data on dozens of developed countries that are over 100% but I don’t see any alarm bells there all the time that we are in debt or in trouble. Unfortunately, we are our own worst enemy. Finance Minister said.
Dar told the investors that they have a huge role to play and urged them to devote some time to Pakistan apart from their business. He added that everyone needs to work together.
