Dar Assures Investors That Pakistan Would Not Default Despite The Country’s “Tight Position” Economically

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Even though the economy is in a “tight situation,” Finance Minister Ishaq Dar told investors at the Pakistan Stock Exchange (PSX) on Wednesday that the nation will not fail.

The finance minister spoke about how he has always had faith in Pakistan’s economic “resilience” and bright future. Yet he grieved that the nation had been led to a place it should not be.

“It’s been three months since I’ve been in charge, and we keep hearing more and more warnings that a default is imminent. Explain how a default will occur. Pakistan would not default,” the finance minister promised the investors.

Dar said Pakistan will make it and is handling its own affairs, despite the country’s “tight condition” economically.

He went on to say it was not his fault the government lacked the $24 billion reserves left by the Pakistan Muslim League-Nawaz (PML-N) in 2016.

Pakistan’s finance minister admitted that “the error is in the system” and that fixing it was essential to the country’s future.

According to Dar, “rhetoric” over Pakistan’s inability to pay its bond obligations began as soon as the deadline for doing so drew near. The debts had been paid off, he said, but the “pseudo-intellectuals” were still making claims.

He bemoaned that the same people responsible for Pakistan’s current predicament were also responsible for the rumours.

“Think carefully, and ignore what they say. The news that Pakistan will not default should be widely disseminated. There will be no default in Pakistan, and I can prove it to anybody.

The finance minister said that the nation was suffering because of “petty politics and objectives.”

The finance minister used the fact that Pakistan’s debt-to-GDP ratio has increased from 62% to 72% since he last served in that position to make his case.

The United States has a debt-to-GDP ratio of 110%, Japan’s is 257%, and the United Kingdom’s following COVID is 101%, he said, providing more evidence for his argument.

I can show you numbers for dozens of industrialised nations with debt-to-GDP ratios in excess of 100%, but it doesn’t always mean we’re in a debt trap or having financial trouble. Our deadliest adversary is ourselves, the finance minister lamented.

Dar reassured the investors that they play an important part and asked them to focus on Pakistan outside of their commercial responsibilities. Also, he stressed the need of cooperation.

Dar pointed his finger at the government’s sworn enemy, Pakistan Tehreek-e-Insaf (PTI), saying that the Securities and Exchange Commission of Pakistan (SECP) had been ignored during the time that Imran Khan was prime minister.

The finance minister also said that since taking office, they have increased transparency at the PSX and the SECP.

He continued by saying that the PTI government had not nominated the three SECP directors, but that the new administration had filled the vacancies. He also said that attention should be paid to the business world.

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