Govt Denies Reports About Plan to Impose Economic Emergency

The Finance Division on Tuesday categorically denied that there is any plan to impose an economic emergency in the country.

In a statement, it said that a false message on supposed economic emergency proposals has been circulating on social media in recent days.

The message is unfortunately aimed at creating uncertainty about the economic situation in the country and can only be spread by those who do not want to see Pakistan prosper, it added.

The statement said that the creation and spread of such false messages is against the national interest in these times of economic hardship. It added that a mere reading of the nine points mentioned in the message indicates how far-fetched those suggestions are. It is also quite inappropriate to equate Pakistan with Sri Lanka, given the inherent strength and diversity of Pakistan’s economy.

The Finance Division said that the present difficult economic situation is mainly the result of exogenous factors like the commodity super-cycle, the Russia-Ukraine war, the global recession, trade headwinds, the Fed’s increase in policy rates, and the devastation wreaked by unprecedented floods.

Govt committed to completing IMF program

The government has been making utmost efforts to minimize the impact of such external factors, even when faced with the economic consequences of unprecedented floods and having to meet the conditionalities of the International Monetary Fund (IMF). The government remains committed to completing the IMF program while meeting all external debt repayments on time.

The statement said that in this challenging economic situation, the government has put in place a number of austerity measures with the approval of the federal cabinet. Such measures are in public knowledge and are aimed at eliminating non-essential expenditures. Similarly, the government has been deliberating energy conservation mainly aimed at reducing the import bill. Such deliberations will continue in the cabinet and all decisions will be taken in consultation with all stakeholders and in the best national interest.

Negotiations on 9th review at an advanced stage

With the efforts of the current government, the IMF program has come back on track and negotiations leading to the 9th review are now at an advanced stage. The government’s recent efforts have resulted, amongst others, in a lower current account deficit in recent months and the achievement of FBR revenue targets.

It added that easing up of pressure on the external account is also foreseen in the near future. While there remains the need to make structural adjustments in the mid-term, the economic situation of the country is now moving towards stability.

“Finance Division urges the people of Pakistan to contribute towards economic betterment and stability and not to pay heed to malicious rumors mongering which is against the national interest of Pakistan,” it said.

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