Finance Minister Miftah Ismail has said that there is no risk of Pakistan defaulting anymore and policymakers are well conscious of it.
The declaration came throughout a conversation with Islamabad-based policy think-tank Tabadlab CEO Mosharraf Zaidi.
As the pressure on the government upsurges with the local currency dropping beside the dollar amid political instability, the finance minister appealed that the pressure on the rupee will “vanish” soon and the dollar entry to Pakistan will be higher than the outflow, which will also calm the exchange rate.
He went on to say that the government will quickly make a policy plan and there will be an “organic” descent in imports and surge in exports within three months.
He, however, said that “it’s no fun going to the world, to the International Monetary Fund (IMF), to the Chinese, to the Saudis, asking for money.”
Miftah said that the IMF loan arrival will be finished within weeks.
“There’s no prior action that’s left really. The only thing is that they have a vacation for the (IMF) directors from August 1 to 15. That’s why the meeting is a little later than I would’ve liked,” he explained.
‘Friendly Country Bowed Down Pakistan’s Request’:
Miftah additional stated that Pakistani authorities had demanded a “friendly country” to shore up foreign exchange reserves through dollar-denominated deposits but the latter prohibited the idea, saying that the deposits have never been refunded.
He said that this unnamed country revealed willingness on shareholding in state-owned companies with tradeable shares on the stock exchange to let Pakistan raise dollars by repurchasing the same shareholding after a certain period of time but at 5% higher rates.
The minister said that the “friendly country” tried to help Pakistan and is giving a great deal, adding that “there’s not even (a question of) price discovery.”