ISLAMABAD: Minister of State for Finance and Revenue Dr Aisha Ghaus Pasha stressed Thursday that Pakistan would not default on its international obligations and the government would ensure timely external debt payments. The minister’s comments came as despite assurances from the government about the country’s finances the situation remains gloomy and experts warn of an economic crunch ahead.

In conversation with journalists in Islamabad, the state minister added that there is “no chance” of Pakistan’s default as authorities were in talks with Saudi Arabia for a $3 billion loan and the same amount from $3 billion. “We will also ensure that our foreign debt requirements are met,” the minister said, as Pakistan faces an uphill task of repaying the loans amid depleting forex reserves. The foreign exchange reserves held by the State Bank of Pakistan (SCP) stood at $6.11 billion on December 22, 2022, against $10.8 billion in April 2022 when the coalition government regime took over the reins of power after ousting Imran Khan through the vote of no-confidence.

Amid a crisis-like situation, Pakistan will have to repay approximately $8.3 billion in the shape of external debt servicing over the next three months (Jan-March) of the current fiscal year. The government is eyeing to pass the ninth review of the International Monetary Fund (IMF) to secure a $1.7 billion bailout package, but both sides have made no substantial headway in recent days. In this regard, the minister said the money lender’s annual holidays were underway, but the Pakistani authorities were in contact with them over the Extended Fund Facility (EFF). Pasha also said Minister for Finance and Revenue Senator Ishaq Dar would meet the Fund’s officials at the international donor’s conference in Geneva on January 9. The country aims to gather funds from global donors as cataclysmic floods had battered the nation and caused damages worth $30 billion despite Pakistan being one of the lowest carbon emitters.

Published in The Daily National Courier, December, 30 2022

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