U-turn from IMF? Ishaq Dar ties all hopes on Saudi Arabia

ISLAMABAD: Finance Minister Ishaq Dar has now tied hopes with Saudi Arabia to raise the declining foreign exchange reserves. On Wednesday, Ishaq Dar held a joint press conference with State Minister for Finance Aisha Ghaus Pasha, Information Minister Marriyum Aurangzeb, Minister for Planning Ahsan Iqbal, Minister for Energy Khurram Dastgir Khan, and Minister for Economic Affairs Ayaz Sadiq.

During the conference, the finance minister said that the second bailout from Saudia Arabia of $3 billion would help boost the reserves. He added that by June 30, 2023, the position of foreign exchange reserves would be better than what it is right now.

Dar’s remarks indicate a deviation from the plan of going to the International Monetary Fund (IMF), which has laid down a series of new clauses for the ninth review. IMF urged Pakistan to hike the prices of energy commodities, impose new taxes, achieve the surplus target of the primary budget, and end the additional circular debt of Rs500 billion.

If all conditions of the IMF are met, the inflation rate will rise more. Currently, Pakistan has an inflation rate of 25 per cent.

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