World Bank mistake resulted from a clerical error: Ishaq Dar, Finance Minister

Pakistan’s Finance Minister, Ishaq Dar held a press conference in Islamabad today. He said that, “there is nothing to worry about the Current Account deficit, notifying that reserves are currently at 14 Billion”.

He said that, “Government is taking all the steps to increase Government Revenues including Tax Broadening to increase the tax revenues.”

Slashing the speculations in the domestic markets, he said that, “Pakistan’s economy is improving, Standard & Poor’s continue to rate Pakistan’s economy as a growing one. ”

Reporting on the claims for end to load shedding, he said that “We hope load shedding will end in December. The number of projects will help the situation in the energy sector”

Furthermore, he said that “Circular Debt is well below 400 billion, he further mentioned that a total of 480 billion have been paid by the current Government to pay off the circular debt.”

Comparing Pakistan Debt to GDP ratio with that of the developed economies he said that, Debt to GDPof Pakistan if 61.6% which compared against US’s 83%, UK’s 80%, Japan’s 120% and India’s 68%. He said that Pakistan’s debt to GDP is being shown off as the worst in world, however, the situation is not such.

He said that the increase in the Debt to GDP during the last three years has been due to increased expenditure in Social Safety, PSDP Projects, and Energy related projects.

Quoting the World Bank’s articles he said that World Bank misinterpreted the numbers that were given to them. He further elaborated that the mistake was a clerical error. The calculations were not done according to the international formulae which resulted in a confusion. He said that the situation has already been communicated at the World Bank and some clarification is imminent during the coming weeks from the Bank authorities.