Former Finance Minister Miftah Ismail cautioned on Tuesday that Pakistan’s current course might lead to default. He asked the government to take steps to avoid such a scenario.
“Pakistan should not default; however, I believe that the path we are on might take us towards default as the economic challenges have increased. We should take steps to avoid the danger”
He mentioned while talking to a private TV channel.
According to former minister, the fear of default would hang over Pakistan until the government finalizes the (IMF) ninth review. The former finance minister cautioned that if the (IMF) shuts down their operations Pakistan will be unable to evade failure. He underlined that maintaining the IMF program is the only option to prevent default.
In response to Finance Minister Ishaq Dar’s statement that the IMF is unreasonable, Ismail stated that we should examine the ground facts and understand why we have addressed the IMF over 20 times.
Pakistan is set to get a multibillion-dollar financial support program from long-time supporter Saudi Arabia this month. This step is taken to strengthen its FX reserves. The country’s ninth review of a $7 billion IMF bailout hits difficulties.
Previously, the Finance Division stated that talks with the (IMF) on the ninth review of Pakistan’s $7 billion Extended Fund Facility (EFF) are quite well underway.
Previously, Pakistan has already been attempting to approach allies for additional funding. Dar has stated that he expects to get $3 billion from a friendly country.
Dar also stated, the IMF asked Pakistan to demonstrate how it plans the costs of restoration for the horrific floods. It is believed to insure over $30 billion worth of damage.
According to the ministry and the IMF, the evaluation is still discussing online. The IMF has not yet set a date for a physical review.
In August, the IMF accepted the seventh and eighth reviews simultaneously. IMF restarted Pakistan’s bailout program, which agreed in 2019, allowing the transfer of more than $1.1 billion. Pakistan received a $6 billion bailout in 2019, which increased by $1 billion earlier this year.
