Finance Minister Ishaq Dar fired back at former finance chief Miftah Ismail’s remarks predicting Pakistan’s potential default, saying such predictions were shame-inducing.
Ismail, previously removed from the finance minister position, had warned that Pakistan might face default by October unless the International Monetary Fund’s (IMF) stalled program resumed. He claimed the delay in the IMF program contributed significantly to the current economic predicament.
In response to Ismail’s gloomy economic prognosis, Dar stated at a business meeting in Islamabad that the government had implemented several steps to maintain economic stability. He admitted to challenges but reassured the business community of eventual recovery, albeit a gradual one.
Dar stressed his achievements in improving the economy during the Pakistan Muslim League-Nawaz (PML-N) administrations in 1999 and 2013. He blamed political instability for the economic crisis and claimed that the hardest reforms had already been implemented.
Regarding the unprecedented delay in the IMF program revival, Dar refuted any technical reasons. Despite growing predictions of a national default, Dar remained defiant, criticizing such pessimism as disloyalty.
He dismissed any notion of a potential default, emphasizing Pakistan’s significant assets. Dar maintained a positive outlook, asserting, “We don’t need to worry. This too shall pass.”
Pakistan, a $350 billion economy, is experiencing financial upheaval amidst the delay in securing the much-needed IMF funding to avert default risks. Although the government has been negotiating since January to restart the $1.1 billion loan tranche from the IMF’s $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019, it appears to be planning to negotiate a new program with the IMF following the budget without completing all pending reviews.
