“No plans to impose economic emergency”

December 6, 2022 (MLN): The Finance Division on Tuesday rebutted reports of economic emergency proposals are being circulated on social media and categorically denied it saying that there is no plan to impose economic emergency, a press release showed.

“The message is unfortunately aimed at creating uncertainty about the economic situation in the country and can only spread by those who donot want to see Pakistan prosper,” it said. 

Creation and spread of such false messages is against national interest in these times of economic hardship. A mere reading of the nine points mentioned in the message indicates how far-fetched those suggestions are, it added. 

It is also quite inappropriate to equate Pakistan with Sri Lanka, given inherent strength and diversity in Pakistan’s economy.

The present difficult economic situation is mainly the result of exogenous factors like commodity super-cycle, Russia-Ukraine war, global recession, trade headwinds, Fed’s increase in policy rates and devastation wreaked by unprecedented floods, the division said.

The Government has been making utmost efforts to minimize the impact of such external factors, even when faced with the economic consequences of unprecedented floods and having to meet IMF conditionalities. 

The Government remains committed to completing the IMF program while meeting all external debt repayments on time, the Finance Division clarified.

In this challenging economic situation, the Government has put in place several austerity measures with the approval of the Federal Cabinet. Such measures are in public knowledge and are aimed at eliminating non-essential expenditures. Similarly, the Government has been deliberating energy conservation mainly aimed at reducing the import bill. Such deliberations will continue in the Cabinet and all decisions will be taken in consultation with all stakeholders and in the best national interest.

With the efforts of the current government, the IMF program has come back on track and negotiations leading to 9th Review are now at an advanced stage. Government’s recent efforts have resulted, amongst others, in lower current account deficits in recent months and achievement of FBR revenue targets. Easing up of pressure on external account is also foreseen soon. While there remains the need to make structural adjustments in the mid-term, the economic situation of the country is now moving towards stability.

Finance Division urges the people of Pakistan to contribute towards economic betterment and stability and not to pay heed to malicious rumors mongering which is against the national interest of Pakistan.

Copyright Mettis Link News