ISLAMABAD: Federal Minister for Ministry of Finance and Revenue Miftah Ismail stated that Pakistan successfully prevented Sri Lanka-like situation and economy of the country was now heading in right direction”.
Myth, in Interview with CBC, said: “There were serious concerns about Pakistan leading Sri Lanka. way and Pakistan falls into default-like situation, but fortunately we made some important changes…… I think we have prevented this situation.”
Finance minister farther added this country was now in International Monetary Fund (IMF) Program and Staff Agreement already signed and approved by the IMF board for release of funds under the Expanded Funding Facility are expected to be made available by the end of of August.
“The country at the head in right direction”, – he said, adding that due to the reduction in demand, interest rates have been increased. “Import has also passed down while the Pakistani rupee appreciated by about 7% against in dollar because the last week,” he said.
Answering a question, he said that he was tough decision and measures taken government influenced people of country, however, government there was no other option but to save economy from collapse.
Finance minister said international fuel prices have risen, while commodity prices and edible oil also splash, creating difficult environment in international level.
He left on say pakistani economy did not have in absorption position international price hiking shocks, and that’s why government had pass on in price increase to people to prevent Sri Lanka-like situation in country.
“Pakistan has been going through a difficult times”, – he said, expressing the hope that prices in in international market will come down after a couple of months and will help reduce domestic inflation.
AT minister said that although headline inflation reaches 25%, it will down as fuel and raw material prices decline, anticipating that inflation remain about 12%.
AT reply to the question about rising interest rates, minister said it was the State Bank of Pakistan (SBP), which decides changes in markup rates after taking into account a number of economic indicators.
Commenting on China-Pakistan Economic Corridor (CPEC), minister said: “It was the flagship project and Pakistan welcomed others countries including Afghanistan, Iran, Central Asian countries Saudi Arabia, United Arab Emirates and Oman in join It.”
He added that the regional countries could also take advantage of this as project may be of great benefit for people of in region.
