Commerce Minister rejects rumours of Pakistan’s default risk

Minister for Commerce Syed Naveed Qamar Monday rejected rumours related to Pakistan's default risk, saying the "country has never defaulted and it will not happen in future," Radio Pakistan reported.

Talking to the media in Tando Muhammad Khan, the minister admitted that Pakistan's foreign exchange reserves are under pressure, adding that few consignments have been stopped at the port due to this reason.

Finance Division dismisses rumours over supposed economic emergency proposals

Naveed Qamar blamed Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan for bringing the country to the verge of financial collapse during his government.

The statement comes hours after the Asian Development Bank (ADB) approved a $554 million financing package, including new and reallocated funds, to support recovery and reconstruction efforts following this year’s devastating floods.

The Manila-based lender on Monday said in a statement that the funding would also be utilised to strengthen Pakistan’s disaster and climate resilience.

“The financing, which includes a $475 million loan and a $3 million technical assistance grant from the Asian Development Bank (ADB), and a $5 million grant from the Government of Japan, will support the restoration of irrigation, drainage, flood risk management, on-farm water management, and transport infrastructure in the flood-affected provinces of Balochistan, Khyber Pakhtunkhwa, and Sindh,” read the statement.

Flood relief: ADB approves $554mn financing package

ADB’s Emergency Flood Assistance Project will also incorporate climate and disaster resilience measures into the design of the infrastructure. The lender has also repurposed an additional $71 million from existing loans to support the government’s flood-response efforts.

“This year’s floods, which affected 33 million people and brought enormous damage to infrastructure and agriculture, are a devastating reminder of Pakistan’s acute vulnerability to climate change,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

Last week, the Finance Division rejected reports of supposed economic emergency proposals circulating on social media, adding that there was no planning to impose an economic emergency in the country.

In a statement, the Finance Division said the message is "unfortunately aimed at creating uncertainty about the economic situation in the country".

"The creation and spread of such false messages are against the national interest in these times of economic hardship. A mere reading of the nine points mentioned in the message indicates how far-fetched those suggestions are," the statement read.

Govt determined to revive economy, says Marriyum

The Finance Division said it was quite "inappropriate to equate Pakistan with Sri Lanka, given the inherent strength and diversity of Pakistan’s economy."

"With the efforts of the current government, the IMF program has come back on track, and negotiations leading to the 9th Review are now at an advanced stage. The government’s recent efforts have resulted, amongst others, in lower current account deficits in recent months and the achievement of FBR revenue targets. Easing up pressure on the external account is also foreseen in the near future. While there remains the need to make structural adjustments in the mid-term, the economic situation of the country is now moving towards stability," it added.

The Finance Division urged the people of Pakistan to contribute towards economic betterment and stability and not to pay heed to malicious rumors mongering which is against the national interest of Pakistan.