As IMF program nears its end, Pakistan’s finance minister reiterates country won’t default 

Pakistan’s Finance Minister Ishaq Dar speaks during a press conference in Islamabad on February 10, 2023. (AFP/File)
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Updated 03 June 2023
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As IMF program nears its end, Pakistan’s finance minister reiterates country won’t default 

  • Finance Minister Ishaq Dar says despite having external debts, Pakistan has assets worth billions of dollars 
  • People ‘fond’ of predicting the country would default within two, three months should be ashamed, he adds 

ISLAMABAD: Finance Minister Ishaq Dar reiterated on Saturday that Pakistan would not default despite the economic challenges it was facing, adding the government would come up with new ideas in the weeks to come to steer the country out of the economic crisis. 

The South Asian country has for months been struggling with an acute balance-of-payment crisis, with inflation hovering at a record high, currency depreciating fast and foreign exchange reserves at critically low levels. 

Pakistan is making desperate attempts for the revival of a $6.5 billion International Monetary Fund (IMF) program that would release a $1.1 billion bailout tranche. The installment has been pending since November and the program is due to expire on June 30, with the government expected to present the federal budget next week. 

The stalemate has raised concerns that the country may default on its international financial obligations without the IMF funding. But Dar, in a meeting with a business delegation in Islamabad, assured that Pakistan, as a sovereign country, had assets worth billions of dollars. 

“If we have $100 billion in external debts, we also have assets, and one of our assets, the gas infrastructure, alone costs $40 to $50 billion, which is 50 percent of the debt,” he said. 

“No one is saying internationally that Pakistan will default, only some pseudo-intellectuals are saying that. In fact, the MD [managing director] of the IMF issued a statement a few weeks back that Pakistan will not default. Their broad discussions center around how is Pakistan surviving.” 

Dar said his government would try to come up with new ideas to steer the country out of the present crisis. 

“Our main purpose today is just to reassure you, that we will be coming out of [this crisis] and come up with new ideas in the weeks to come,” he said. 

“There will be the budget and after that, we will also do things for Pakistan’s long-term betterment.” 

Referring to statements by ex-finance czar Miftah Ismail about the country moving toward bankruptcy, Dar said “some people were fond of” predicting dates when the country would default. 

“They say the country would default in two to three months. They should be ashamed of themselves,” he added. 


Imran Khan’s party shutdown draws mixed response; government calls it ‘ineffective’

Updated 08 February 2026
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Imran Khan’s party shutdown draws mixed response; government calls it ‘ineffective’

  • Ex-PM Khan’s PTI party had called for a ‘shutter-down strike’ to protest Feb. 8, 2024 general election results
  • While businesses reportedly remained closed in Khyber Pakhtunkhwa, they continued as normal elsewhere

ISLAMABAD: A nationwide “shutter-down strike” called by former prime minister Imran Khan’s party drew a mixed response in Pakistan on Sunday, underscoring political polarization in the country two years after a controversial general election.

Khan’s Pakistan Tehreek-e-Insaf (PIT) opposition party had urged the masses to shut businesses across the country to protest alleged rigging on the second anniversary of the Feb. 8, 2024 general election.

Local media reported a majority of businesses remained closed in the Khyber Pakhtunkhwa (KP) province, governed by the PTI, while business continued as normal in other provinces as several trade associations distanced themselves from the strike call.

Arab News visited major markets in Islamabad’s G-6, G-9, I-8 and F-6 sectors, as well as commercial hubs in Rawalpindi, which largely remained operational on Sunday, a public holiday when shops, restaurants and malls typically remain open in Pakistan.

“Pakistan’s constitution says people will elect their representatives. But on 8th February 2024, people were barred from exercising their voting right freely,” Allama Raja Nasir Abbas Jafri, the PTI opposition leader in the Senate, said at a protest march near Islamabad’s iconic Faisal Mosque.

Millions of Pakistanis voted for national and provincial candidates during the Feb. 8, 2024 election, which was marred by a nationwide shutdown of cellphone networks and delayed results, leading to widespread allegations of election manipulation by the PTI and other opposition parties. The caretaker government at the time and the Election Commission of Pakistan (ECP) both rejected the allegations.

Khan’s PTI candidates contested the Feb. 8 elections as independents after the party was barred from the polls. They won the most seats but fell short of the majority needed to form a government, which was made by a smattering of rival political parties led by Prime Minister Shehbaz Sharif. The government insists the polling was conducted transparently and that Khan’s party was not denied a fair chance.

Authorities in the Pakistani capital deployed a heavy police contingent on the main road leading to the Faisal Mosque on Sunday. Despite police presence and the reported arrest of some PTI workers, Jafri led local PTI members and dozens of supporters who chanted slogans against the government at the march.

“We promise we will never forget 8th February,” Jafri said.

The PTI said its strike call was “successful” and shared videos on official social media accounts showing closed shops and markets in various parts of the country.

The government, however, dismissed the protest as “ineffective.”

“The public is fed up with protest politics and has strongly rejected PTI’s call,” Pakistan’s Information Minister Attaullah Tarar said on X.

“It’s Sunday, yet there is still hustle and bustle.”

Ajmal Baloch, All Pakistan Traders Association president, said they neither support such protest calls, nor prevent individuals from closing shops based on personal political affiliation.

“It’s a call from a political party and we do not close businesses on calls of any political party,” Baloch told Arab News.

“We only give calls of strike on issues related to traders.”

Khan was ousted from power in April 2022 after what is widely believed to be a falling out with the country’s powerful generals. The army denies it interferes in politics. Khan has been in prison since August 2023 and faces a slew of legal challenges that ruled him out of the Feb. 8 general elections and which he says are politically motivated to keep him and his party away from power.

In Jan. 2025, an accountability court convicted Khan and his wife in the £190 million Al-Qadir Trust land corruption case, sentencing him to 14 years and her to seven years after finding that the trust was used to acquire land and funds in exchange for alleged favors. The couple denies any wrongdoing.