ISLAMABAD
State Minister on Finance Aisha Ghaus Pasha has said that the International Monetary Fund (IMF) executive board will meet on August 25 and the Fund will disburse the next loan tranche of $1.2 billion for Pakistan soon after the meeting.
The minister told the Senate Committee on Finance on Thursday that Pakistan does not face the risk of defaulting on its international obligations. However, a PTI senator claimed that the country has already defaulted while PML-N’s Saadia Abbassi called on Finance Minister Miftah Ismail to attend the panel meeting and brief it on the rising US dollar rate.
As the Pakistan rupee finds itself in freefall amid rapidly falling forex reserves, the senate panel discussed the financial position of the country. PTI Senator Mohsin Aziz claimed that the country had already defaulted because banks were not opening or delaying opening Letters of Credit (LCs) and industries were shutting down.
The senator urged the panel to suspend the routine agenda proceedings and discuss the economic situation prevailing in the country. Minister Pasha said that the 12% decline in the value of the Pakistani rupee was caused by US Federal Reserve’s move to increase interest rate as it countered rising inflation.
She said Pakistan did not face any risk of default and after the August 25 meeting of the IMF executive board, Pakistan will be disbursed money. China has already refinanced a $2.3 billion loan and other friendly countries and financial institutions are assisting Pakistan, she said.
Balochistan Awami Party (BAP) Senator Danesh Kumar blamed rising US dolalr on currency smuggling. He said the value of the US dollar should not be above Rs218 and that the unusually high rate of Rs240 was due to smuggling. Shutdown at least three borders and the US dollar will fall, the senator said.
