Pasha says govt in talks with Saudi Arabia and China for loans.
“We will ensure our foreign debt requirements are met,” she says.
Pakistan faces uphill task as it has to pay $8.3bn in next 3 months.
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.
“Maybe our friendly countries are waiting for the donors’ conference so they can help us [and provide loans],” Minister Planning and Development Ahsan Iqbal told Geo News’ Shahzeb Khanzada earlier this month.
In his address to investors at the Pakistan Stock Exchange (PSX) on Wednesday, FinMin Dar said that the country will not default but did admit that the economy was in a “tight position”.
“It’s been three months since I took charge and we listen every day that there is going to be a default. How will there be a default? There is no chance that Pakistan will default,” the finance minister assured the investors.
Dar assured that Pakistan would survive and is managing itself but conceded that the economy was in a “tight position”.
He added that the country does not have the $24 billion reserves that the Pakistan Muslim League-Nawaz (PML-N) left in 2016 but that was not his fault.
“The fault is in the system and we must ensure Pakistan goes forward,” said the finance minister.
A 10-member Task Force has been formed by the government to digitize the Federal Board of Revenue (FBR) in partnership with the Special Investment Facilitation Council (SIFC).
Improving FBR’s systems and completely digitizing its operations are part of the Task Force’s mandate. Policy interventions, data automation, software installation, and collaboration with provincial revenue authorities are among the main goals.
Together with developing a track-and-trace system through integrated automation, the task force will also establish an Automated Supply Chain System for distributors and wholesalers.
Pakistan Revenue Automation Limited would become a stand-alone IT bureau for planning and data preparation.
In order to create a unified national tax strategy, the project seeks to maximize revenue collection, increase transparency, and simplify Pakistan’s tax system while encouraging cooperation between the federal and provincial tax authorities.
The benchmark 100 Index was up 777 points, finishing at 90,970 points, as the Pakistan Stock Exchange (PSX) maintained its striking upward trend for the sixth day in a row.
Strong market momentum and investor optimism were highlighted by the index’s 850-point spike earlier in the day, which briefly reached a record-breaking 91,050 points.
As trading activity hits previously unheard-of heights, the historic milestone represents increased investor optimism and represents a tremendous accomplishment for the PSX. Experts foresee continuous momentum if favorable conditions continue, attributing the ongoing advance to optimistic economic indicators and investor zeal.
The dates of the 2024 International Conference on Sustainable Agriculture are set for October 29 and 30 in Karachi.
Supported by the Green Pakistan Initiative, which has achieved great strides in the last year, the conference is organized by the Pakistan Media Development Foundation, Exhibitor TV, and Ripple Concept.
Focusing on enhancing agricultural productivity using contemporary technology, the conference supports the Special Investment Facilitation Council’s (SIFC) prioritizing of agriculture.
Experts will talk about sustainable techniques and organic farming, and there will be a plenary discussion on the Land Information and Management System.
In order to facilitate connections between professionals and stakeholders, the event will also feature exhibitions that promote contemporary methods and technologies.
Sindh and Balochistan’s agriculture departments will display their accomplishments in provincial pavilions. Participants will also include sponsors Saudi-Pak Investment Company, National Bank of Pakistan, and Bank of Punjab.