The Finance Minister of Pakistan, Miftah Ismail, speaking at a seminar on the country’s economy, revealed that the government will today engage with the International Monetary Fund (IMF) to discuss a relief package for flood affectees.
The Finance Minister assured that the fund would not have any issues with providing an Rs. 25,000 per person relief as it is aware of the devastation caused by the floods in the country.
Recently, Prime Minister Shahbaz Sharif said that now Pakistan needs to take approval on every key economic measure from IMF, going as far as to say, “We have to take permission before even to sneeze.”
Speaking on the performance of the government so far, the minister said that Pakistan had a cumulative debt of Rs. 44 billion when he assumed office, and foreign exchange reserves stood at $10.3 billion. He informed that international lenders require reserves equivalent to at least three months of import bill to lend money. He further informed that the government aims to repay loans of $21 billion in the current fiscal year.
Minister Ismail revealed that Pakistan needed cumulative reserves of $36 billion for the current year to prevent default and stabilize the economy, which is why it was necessary to take difficult decisions.
He said that Pakistan is caught in a cycle of boom and bust. Minister Ismail said that growth could also be achieved even in difficult conditions but that growth is unsustainable and severely damages the economy.
Speaking on the recent floods, the minister informed that the flood affectees have been provided with aid of almost Rs. 70 billion. He also informed that the prime minister has directed to purchase 3 lakh tents with Rs. 10 billion.
