Pakistan not going to default: Ishaq Dar

December 28, 2022 (MLN): Pakistan is not going to default as the incumbent government is effectively managing the economic situation of the country by efficiently using its resources, Federal Minister for Finance and Revenue Ishaq Dar said while speaking to investors during the Gong Ceremony the first listing of a developmental REIT (Globe Residency REIT) held at Pakistan Stock Exchange (PSX) on Wednesday.

“Though the country is facing hardships that does not mean that the sovereign state is going to give up,” he added while assuring investors.

He indicated the presence of certain groups who are spreading such rumors for their own petty advantages.

The country’s debt to GDP ratio is 72% while the other countries’ debt to GDP revolves around 100% of their GDP.

“At the time of Sukuk payment, we were hearing that Pakistan is going to default yet we made payments on time,” he added.

The government has reprioritized the essential imports of raw materials for the export industry to boost economic growth.

Talking about dollar PKR parity, he admitted that concerns pertaining to the smuggling of dollars to Afghanistan have led PKR towards a bottomless pit.  

He also admitted that the government’s decision of importing wheat and subsidizing the same is hitting hard on the already dwindling economy.

Meanwhile, the smuggling of fertilizer has also put a strain on the economy.

In order to curb the element of smuggling from the country, the government is on its toes.

On the International Monetary Fund (IMF) front, the minister said that regardless of the difficult conditions accepted by the previous government, the present government is committed to completing the program.

Though we have completed IMF’s commitments related to petrol prices i.e, Petroleum Development Levy (PDL) but we also have to consider the general public who bear the burnt of rising prices at the end of the day.

While congratulating REIT Manager Arif Habib Dolmen REIT Management Limited and offeror Javedan Corporation Limited on the successful listing, Dar said that Pakistan is offering immense potential in REITs.

India entered the REIT market after Pakistan. However, Pakistan’s capitalization of REIT is $134 million while India's REIT market now stands at $8 billion, he added.

He also highlighted that SECP for over 1.5 years remained as a quasi-dysfunctional organization, working only with two commissioners out of five.

“Thus, the first thing I did was to appoint persons on these key positions, after a transparent process,” he noted.

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