Pakistan’s Finance Minister Miftah Ismail said on Friday that the government will continue to ban imports for the next three months. He also warned of ‘bad days’ ahead for the country due to the cash crunch.
Finance Minister Ismail said this while addressing a function at the Pakistan Stock Exchange. He attributed this to the economic policies of the then Pakistan Tehreek-e-Insaf (PTI) government led by former Prime Minister Imran Khan.
Geo TV quoted Ismail as saying, “During the last Pakistan Muslim League-Nawaz (PML-N) government, the country’s budget deficit was $1,600 billion. In the last four years under Pakistan Tehreek-e-Insaf (PTI) regime , that figure increased to $3,500.”
“No country can develop and become stable with such a current account deficit,” Ismail stressed. “When you increase the budget deficit and also increase the loan by 80 per cent, it has a direct impact on the economy,” he explained.
‘I have no choice’
On the issue of foreign trade, Dawn newspaper quoted the Finance Minister as saying, “I will not allow imports to increase for three months and in the meantime we will come up with a policy. I understand that the growth will slow down a bit, but I have no other option.” Not there.”
Pakistan’s import bill for the last financial year was US$80 billion, while exports stood at US$31 billion. This resulted in a trade deficit of US$ 49 billion.
He explained that the present government has to save the country from possible defaults and take immediate and short-term measures. “Perhaps it was unwise in the long term,” he lamented.
Finance Minister Ismail warned and advised, “We are on the right track, but obviously we may see bad days. If we stop our imports for three months, we will be able to increase our exports through different channels.” can promote.”
Pakistan’s currency has fallen to the lowest level of 240 since the ouster of Imran Khan in April. On the other hand, nothing is known about the help received from IMF.
Last week, New York-based rating agency S&P Global downgraded Pakistan’s long-term rating from ‘stable’ to ‘negative’ in view of rising inflation and tighter global financial conditions.