Under-fire Finance Minister Ishaq Dar on Thursday once again ruled out the possibility of any default and reiterated his stance that all indicators were moving in the right direction.
The finance czar made these remarks after reports that bondholders are bracing for a possible default by Pakistan, which is struggling to meet billions of dollars in debt repayments by the end of the ongoing financial year.
In a tweet, the finance minister shared his side of the estimated default probability in Pakistan and lambasted anti-Pakistan elements for spreading malicious rumors that the country may default. “This is not only completely false but also belie[s] the facts,” he said.
Anti-Pakistan elements are spreading malicious rumors that Pakistan may default. This is not only completely false but also belie the facts. SBP forex reserves have been increasing and are almost
US $ 1 billion higher than four weeks ago despite making all external… 1/2
— Ishaq Dar (@MIshaqDar50) March 2, 2023
“SBP forex reserves have been increasing and are almost US$ 1 billion higher than four weeks ago despite making all external due payments on time. Foreign commercial banks have started extending facilities to Pakistan,” he added.
The minister also provided an update on Pakistan’s negotiations with the International Monetary Fund (IMF). He said, “Our negotiations with IMF are about to conclude and we expect to sign Staff Level Agreement with IMF by next week. All economic indicators are slowly moving in the right direction”.
To note, Moody’s Investors Service earlier this week downgraded Pakistan further into junk status as the country struggles with the worst economic crisis in decades, with foreign reserves plummeting and inflation reaching a record high. Pakistan is relying on an IMF bailout in the coming weeks but uncertainty regarding its arrival still remains prevalent and is shown in day-to-day market trends.