Pasha says govt in talks with Saudi Arabia and China for loans.
\n Islamabad
\nMinister 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.
\nThe minister\u2019s comments came as \u2014 despite assurances from the government about the country\u2019s finances \u2014 the situation remains gloomy and experts warn of an economic crunch ahead.
\nIn conversation with journalists in Islamabad, the state minister added that there is \u201cno chance\u201d of Pakistan\u2019s default as authorities were in talks with Saudi Arabia for a $3 billion loan and the same amount from $3 billion.
\n\u201cWe will also ensure that our foreign debt requirements are met,\u201d the minister said, as Pakistan faces an uphill task of repaying the loans amid depleting forex reserves.
\nThe 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.
\nAmid 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.
\nThe 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.
\nIn this regard, the minister said the money lender\u2019s annual holidays were underway, but the Pakistani authorities were in contact with them over the Extended Fund Facility (EFF).
\nPasha also said Minister for Finance and Revenue Senator Ishaq Dar would meet the Fund\u2019s officials at the international donor\u2019s 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.
\n\u201cMaybe our friendly countries are waiting for the donors\u2019 conference so they can help us [and provide loans],\u201d Minister Planning and Development Ahsan Iqbal told Geo News\u2019 Shahzeb Khanzada earlier this month.
\nIn 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 \u201ctight position\u201d. \u201cIt\u2019s 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,\u201d the finance minister assured the investors.
\nDar assured that Pakistan would survive and is managing itself but conceded that the economy was in a \u201ctight position\u201d.
\nHe 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.
\n\u201cThe fault is in the system and we must ensure Pakistan goes forward,\u201d said the finance minister.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pasha says govt in talks with Saudi Arabia and China for loans. Islamabad 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\u2019s comments came as \u2014 despite assurances from the government […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-304289","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-top-news"},"yoast_head":"\n