No default


AS some circles were still expressing apprehensions of a possible default, Minister of State for Finance and Revenue

Aisha Ghaus Pasha assured the nation on Friday that the country was not facing any danger of such an eventuality.

She told the National Assembly that after the successful seventh and eighth reviews of the IMF programme, there was no immediate threat of Pakistan going to default.

The economic team of the present government, headed by Finance Minister Ishaq Dar and MoS Aisha Ghaus Pasha, is successfully tackling the challenges facing the country in the realm of economy and finance and there was no reason to doubt their claims about smooth transition to normalcy.

It is rightly said that the country did not default when it was unable to borrow money from other multilateral and bilateral agencies and even the commercial market to finance its external needs due to the suspension of the IMF programme.

The government efficiently managed the situation and now necessary finances are being lined up to meet foreign exchange requirements of the country.

There is no doubt that the country is still under pressure as foreign exchange reserves are depleting in the face of debt repayments and a fall in remittances by Overseas Pakistanis.

However, the authorities concerned have held successful negotiations with some friendly countries including China and Saudi Arabia to get favourable economic packages and their practical implementation is only a matter of time.

Indeed, taking more loans to repay previous debt is not a wise strategy and there is a need to pursue prudent policies to help the country stand on its own feet.

This can only happen when all those liable to pay taxes contribute their due share to the national kitty, industrial and agricultural production is increased meaningfully, quality surplus is created for exports and hard work is done both by the government and the private sector to take the exports to an optimum level, for which potential is definitely there.

In the meantime, the government should restrict unnecessary imports that are a sheer burden on the strained foreign exchange position of the country.



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