Islamabad, July 31, 2023 – Pakistan’s Finance Minister, Muhammad Ishaq Dar, announced on Sunday his commitment to raise the nation’s foreign exchange reserves from $14 billion to $15 billion within the next seven weeks.
Addressing the Senate during a Point of Order session, Dar acknowledged the challenges faced by the country over the past 11 months, particularly in light of predictions from rating agencies about Pakistan’s potential default on its financial obligations.
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During his speech, Minister Dar revealed that Pakistan had been under immense pressure to repay a substantial sum of $3 billion. To alleviate this financial strain, China generously extended the loan duration of $2.4 billion by two years. Moreover, in the current month, Pakistan received a total of $4.2 billion in financial aid. This assistance included $2 billion from Saudi Arabia, $1 billion from the United Arab Emirates (UAE), and $1.2 billion from the International Monetary Fund (IMF). The IMF’s approval of $3 billion for Pakistan was provided as part of a Standby Arrangement (SBA) to support the nation’s economic stability.
Minister Dar further disclosed that the Industrial and Commercial Bank of China (ICBC) had contributed $300 million to bolster Pakistan’s foreign exchange reserves. This move is expected to enhance the country’s financial standing and provide additional stability in the face of economic challenges.
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During his address, Dar also lamented the impact of former Aviation Minister Ghulam Sarwar’s “irresponsible” statements, which led to a substantial loss of Rs70 billion to Pakistan International Airlines (PIA). He assured the Senate that timely legislation would be enacted to finalize PIA’s flight operations to the United Kingdom, with an anticipated commencement by October.
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The Finance Minister expressed his concern over Pakistan’s economy, which has seen a decline in global rankings, dropping from 24th to 47th position. He emphasized the need for joint efforts and cooperation among all political parties to regain the country’s lost economic standing. To this end, Dar proposed the creation of a charter of the economy that would involve the participation of all political parties, aimed at fostering economic growth and stability.
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The Finance Minister’s ambitious plan to elevate Pakistan’s foreign exchange reserves to $15 billion aims to address the nation’s economic challenges, reduce financial strain, and build a more stable foundation for future growth. The government’s proposed measures and the potential collaboration of all political factions through the charter of the economy signal a concerted effort to navigate the country through these trying times and toward a path of economic recovery.
