ISLAMABAD: Minister of State for Finance and Revenue, Dr Aisha Ghaus Pasha Friday said that the country would not default on the external obligation, however, she admitted all is not well on the economic front and the country is under stress.
The minister while briefing the National Assembly Standing Committee on Finance categorically stated that the International Monetary Fund (IMF) program is not suspended but there are roadblocks including recovery of energy prices including electricity, gas, the rising circular debt, subsidies as well as tax collection.
PML-N member Ali Pervaiz requested the Minister of State to affirm that Prime Minister Shehbaz Sharif had sent a letter to the IMF Chief in order to streamline the situation, but the Minister of State chose not to respond.
The government and coalition members strongly reacted to the government’s economic policies and demanded that the market be brought back to reality.
The Committee showed concern regarding the economic situation of the country and lack of structural reforms in the country. It also showed apprehension about increasing inflation due to bad policies, falling FDI, stagnant savings rate and low export to GDP ratio. The Committee recommended that government should come up with a viable strategy and a grievance redressed mechanism for addressing, volatility of exchange rate and LC issue respectively.
“According to the IMF we are not recovering the actual energy price. If we sell energy at less than the rate at which we are buying it, the IMF will not talk.” Dr Aisha Ghaus Pasha added.
Members of the committee, including Ali Pervaiz and Nafisa Shah (PPP), claimed that unusual circumstances exist in the country where importers are required to pay significant sums for items that are held at ports, such as soybeans.
Angered by the chairman’s and committee members’ comments, the minister of state declared, “I am here as the Minister of State for Finance,” adding that she would respond to all inquiries.
“We have no fear of default at this time and external obligations are being fulfilled,” said the minister, adding that there is a shortage of foreign reserves, but Pakistan will not go towards economic default.
