On Tuesday, Dr Miftah Ismail said that Pakistan needs the hand of the International Monetary Fund to pull itself out of the economic crisis as it faces the severe challenge of financing a record Rs 6.4 trillion budget deficits and a US$20 billion current account deficit this fiscal year.
Miftah, who is expected to be appointed finance minister until Senator Ishaq Dar returns to the country, stated that the new government would honour all international commitments made by the previous PTI government, including the IMF programme, because the country did not have any other choice at the time.
Speaking at a press conference along with other party leaders, Miftah added that the country needs the support of the IMF as it faces the severe challenge this fiscal year of a record budget deficit of Rs 6.4 trillion and a current account deficit of Funding $20 billion.
He also stated that PM Shehbaz Sharif would decide on the destiny of the governor of the State Bank of Pakistan (SBP) and did not rule out a rise in the price of petroleum goods.
“Discussions with the IMF are being conducted on a give-and-take basis, as the abandonment of the global lending program has serious implications for the country’s exchange rate, foreign loan repayments and bonds traded in the United States’ secondary capital markets.”
According to the Finance Ministry, the PMLN leader further said that the budget deficit in the current spending rate is about 6.4 trillion rupiahs or 10% by the end of this fiscal year.
“It will be the highest budget deficit ever recorded, both in absolute terms and GDP.”
Miftah announced that the deficit was almost Rs 1.5 trillion above the target set in the budget,
adding that former Finance Minister Shaukat Tarin was aware but had never told the truth to the nation.
He criticised the preceding PTI authorities for laying “landmines”, which had now compelled the brand new authorities to live withinside the IMF programme.
