ISLAMABAD: Pakistan’s Commerce Minister Syed Naveed Qamar on Monday rejected speculation that the country would default, as Pakistan grapples with its grave economic crisis
With low foreign reserves, mounting debt and an underperforming currency, Pakistan is in desperate need of external financing. Facing an energy and inflation crisis, the South Asian country’s talks with the International Monetary Fund (IMF) for the release of another loan tranche have yet to bear fruit.
To make matters worse, heavy rains in mid-June triggered flash floods that swept away critical infrastructure, crops and killed over 1,700 in Pakistan. Authorities estimate losses from the floods to be over $30 billion.
Pakistan’s poor economic indicators have given rise to speculation that the country will default on its payments. However, the government has repeatedly denied Pakistan will default on its payments.
“Talking to media in Tando Muhammad Khan, he [Qamar] said neither Pakistan has defaulted in the past nor it will happen so in the future,” state-run Radio Pakistan quoted him as saying.
The commerce minister acknowledged that there is pressure on Pakistan’s foreign exchange reserves, adding that a few consignments had been stopped at the port.
“However, he said the rest of all consignments have been released,” Radio Pakistan stated.
He blamed former prime minister Imran Khan for bringing the country on the verge of financial collapse.
