Default risk has reached alarming levels, warned Miftah Ismail
Islamabad (Daily Pakistan Online) Former Finance Minister Miftah Ismail has claimed that Pakistan’s default risk has reached a dangerous level.
According to the details, the leader of Pakistan Muslim League (N) and former finance minister Miftah Ismail, while issuing a message on the social networking website Twitter, said that “I don’t know what is the best rate for the dollar, only the market can determine it.” , the former finance minister said imports were $80 billion and exports $31 billion last year, and advised the current finance minister that his number one priority should not be to make imports easier and exports harder, a The best currency is recognition.
I don’t know what’s the optimal rate of the dollar; only the market can determine that. Last year imports were $80bn & exports $31bn. The No.1 priority of the FM should not be to make imports cheaper & exports harder, which is what an appreciated rupee does.
— Miftah Ismail (@MiftahIsmail) November 27, 2022
The former finance minister has also shared his article on social media, in which he wrote that even after the payment of the December bonds, the risk of default will not end and Pakistan Tehreek-e-Insaf (PTI) has called on the International Monetary Fund (IMF). “We have no margin for error, while concrete steps are urgently needed to reassure markets and creditors,” he said. National interest should take precedence over political interest.
Miftah Ismail said that he has no right to criticize PTI if the government does not take the right steps. Exports fell by 38 percent between 2013 and 2018 and the 38 percent decline in exports led to the second largest current account deficit.
He said that due to PTI’s non-implementation of the IMF agreement, the economy faced difficulties, but we re-signed the agreement with the IMF due to which difficult decisions had to be taken. Today there is a large gap between the dollar rate in the open market and interbank and the State Bank informally guides the banks on the exchange rate.