By Ali Imran
ISLAMABAD: Finance Minister Senator Muhammad Ishaq Dar said on Monday that the economic situation of the country will see a significant improvement after the difficult but inevitable decisions of the government during the budget 2023-24.
He expressed these views while addressing the post-budget conference organized by the Institute of Chartered Accountants of Pakistan (ICAP).
Ishaq Dar vowed to consider the recommendations of various sectors to bring improvements to the budget.
He said two committees would be formed to remove the flaws in the budget, adding in 2017, Pakistan’s economy was at the 24th position, which has now declined to the 47th position due to the poor economic policies of the previous government.
The finance minister held responsible the previous regime for losing the interest of foreign investors in Pakistan and said In 2017, the world’s rating agencies were recognizing the economic development of Pakistan and the inflation rate in the country was only four per cent.
He said, “For the development of the country, we must think beyond personal interest and all parties must work together for the uplift of the economy.
Ishaq Dar said that the previous government damaged the reputation of the country by not fulfilling the conditions of the International Monetary Fund (IMF) and subsequently the nation suffered.
He said he had full faith in the safe future of Pakistan, adding tough decisions were necessary to achieve Pakistan a respectable status.
“We have to increase the economic growth rate and stop the value of the rupee from falling further because the depreciation of the rupee leads to an increase in inflation and there is an extraordinary increase in the debt burden.”
Dar said, “We have to ensure financial discipline in every way. The future of Pakistan is bright and we have to get the country out of economic difficulties through united effort.”
The finance minister said that in the budget, many incentives were given for the growth of the agriculture and information technology sector and the promotion of small and medium industries. “Several measures have also been taken to recognize the contributions of overseas Pakistanis.”
The minister said that billions of rupees were allocated for the education sector and measures were also afoot at the policy level to raise revenues.
Besides State Minister for Finance and Revenue Dr Aisha Ghaus Pasha said Monday the federal government had no intention of freezing foreign currency accounts despite the nation facing a severe dollar crunch.
“We do not plan on freezing foreign currency accounts and there have been no proposals to take such an action,” the state minister told journalists outside the parliament in Islamabad.
In May 1998, the then-government of prime minister Nawaz Sharif froze all currency accounts after the country’s first nuclear tests.
Pakistan’s foreign reserves today, standing at rock bottom, cover less than a month’s imports as the economy creaks under twin deficits and record-high inflation.
The risk of default remains high, and the struggling nation remains in a deadlock with the International Monetary Fund (IMF) over a much-needed bailout programme.
The minister said the government had shared the fiscal year 2023-24 budget numbers with the lender, and the IMF is still negotiating with the State Bank of Pakistan (SBP).
Finance Minister Ishaq Dar unveiled a Rs14.5 trillion (around $50.5 billion) budget last Friday, with over half set aside to service 7.3 trillion rupees of debt, and experts believe it would not help the government’s case mich in unlocking the loan.
“We have told IMF to conclude the ninth review at the earliest. We have less time and a lot of tension for completing the ninth review,” the state minister noted. The minister said the Fund will not have any issues with the budget.
Pasha said IMF MD Kristalina Georgieva had assured the Pakistani authorities that her organisation would complete the latest review. “All our friendly countries have also given their assurances to the IMF.”
Sunday, Prime Minister Shehbaz Sharif had reiterated that Pakistan has already met “all” the preconditions of IMF to revive the stalled bailout programme of the global lender, adding that “no hurdle is now left” in the signing of a staff-level agreement between the cash-strapped nation and the fund.
Addressing the inaugural ceremony of Sabzazar Sports Complex in Lahore, PM Shehbaz, while referring the government’s plan B, said, “If the agreement with the IMF is [further] delayed, then I will address you.”
“No need to panic,” the premier said, adding that Allah almighty will keep Pakistan safe. The premier hoped that the government and the IMF would reach a stall-level agreement this month.
Stressing the need for political stability, the premier said that a country’s economic stability is linked with its political stability. He vowed to bring economic stability in the country under the leadership of PML-N supremo Nawaz Sharif.
Berating the former ruling party, PM Shehbaz hold deposed prime minister Imran Khan responsible for the May 9 mayhem and vowed to bring all the miscreants involved in the violent protests and attacked on the civil and military installations to justice.
On May 9, the PTI chairman was arrested from the premises of the Islamabad High Court in the £190 million settlement case which led to the deaths of at least 10 people, prompting the authorities to arrest thousands of PTI workers.
Following his detention, PTI supporters took to the streets and attacked important military installations — including the General Headquarters in Rawalpindi and the Lahore Corps Commander’s House, commonly known as the Jinnah House.
Over 100 PTI workers and leaders — including Fawad Chaudhry, Shireen Mazari, Imran Ismail, and Ali Zaidi — have left the former ruling party, condemning the May 9 attacks amid a countrywide crackdown on them. The prime minister said that people attacked the public and private properties at the instigation of the PTI chairman.
