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Pakistan will not default, Dar assures investors while conceding economy in ‘tight position’

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2 years ago

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  • Ishaq Dar advises PSX investors to not listen to rumours. 
  • Calls investors to share that Pakistan will not default.
  • Slams opposition for trying to create panic.

Finance Minister Ishaq Dar on Wednesday assured investors at the Pakistan Stock Exchange (PSX) that the country will not default but did admit that the economy was in a “tight position”.

In his address, the finance czar said he always believed that Pakistan has a prosperous future and “resilience” in its economy. However, he lamented that it was unfortunate that the country has been brought to a point where it should not be.

“It’s 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,” the finance minister assured the investors.

Dar assured that Pakistan would survive and is managing itself but conceded that the economy was in a “tight position”.

He 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.

“The fault is in the system and we must ensure Pakistan goes forward,” said the finance minister.

Dar said that as soon as the country’s bond payments came close a “rhetoric” was started that Pakistan will not be able to fulfill its commitment. He added that despite the payment of the bonds the “pseudo-intellectuals” kept claiming.

The rumours were started by the same people who brought Pakistan to this point, he lamented.

“Be conscious, do not listen to them. Disseminate information that Pakistan will not default. I can prove to anyone that Pakistan will not default,” the finance minister maintained.

The finance czar said that for “petty politics and objectives” the country was being harmed.

To prove his point, the finance minister said that Pakistan’s debt-to-GDP ratio is currently 72% while it was 62% when he left the charge in his last stint.

He also gave examples of other countries to further prove his point by saying that the US’s debt-to-GDP ratio is 110%, Japan’s is 257% and UK’s after COVID is 101%.

“I can give you data of dozens of developed countries who are above 100% but I don’t see an alarm there all the time that we are under the debt trap or difficulty. Unfortunately, we are our own worst enemy,” said the finance minister.

Dar told the investors that they have a big role to play and urged them to allocate some time to Pakistan apart from their businesses. He added that everyone needs to work together.

Turning his guns towards the government’s arch-rival, Pakistan Tehreek-e-Insaf (PTI), Dar lamented that the Securities and Exchange Commission of Pakistan (SECP) was neglected during former prime minister Imran Khan’s tenure.

The finance minister added that they focused on the PSX and the SECP when they came to power and made things transparent.

He added that the PTI government had not appointed three directors at the SECP and they filled the positions once they took over. He added that there was a need to focus on the corporate sector.

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Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

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17 hours ago

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The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

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Business

Weekly inflation in Pakistan increased by 0.17 percent.

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17 hours ago

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The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

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Business

The price of gold has drastically dropped in Pakistan.

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2 days ago

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As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.

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