Won’t budge to IMF diktat: Dar

Islamabad: Finance Minister Ishaq Dar has expressed his frustration with the International Monetary Fund (IMF), stating that the lender’s demands would lead Pakistan to a situation similar to that of Sri Lanka, which ultimately result in its default.

Appearing before the Senate Standing Committee on Finance, Dar highlighted the prevailing geopolitical challenges faced by Pakistan, implying that external forces were working against the country’s economic stability.

During the meeting chaired by Senator Salim Mandviwala, the committee reviewed the recommendations regarding the Finance Bill. Dar, a prominent figure of the Pakistan Muslim League-Nawaz, responded to various queries raised by committee members.

He asserted that as a sovereign nation, Pakistan could not blindly accept all of the IMF’s directives. He emphasised that the IMF’s interference should not hinder the discount offered to the youth by the government in the IT sector.

When questioned about the potential impact on economic growth if employment opportunities in the IT industry remained stagnant, Dar said, “How can we expect any growth if employment in IT does not increase by even 0.29 per cent? We aim to promote youth employment through the development of the IT sector.”

He further said that “this year’s IT exports were projected to reach $2.5 billion, with a target of $4.5 billion for the following year. Over the next five years, he said, the goal was to raise IT exports to $15 billion.

Miftah Ismail, another PML-N official present at the meeting, warned that if Pakistan did not join the IMF programme, default was inevitable during the second quarter of the upcoming financial year.

Regarding recent amendments made to the State Bank Act, Dar expressed his concerns, deeming the changes unjustifiable. He emphasised that the State Bank of Pakistan belonged to the nation and not any international entity. He emphasized the importance of timely payments, including bonds, highlighting that no payments had been delayed thus far.

He criticized the amendments made to the State Bank Act, saying they led to a “state within the state”. He also pointed out that Pakistan’s debt had escalated from $70 billion to over $100 billion within four years.

Dar’s discontent with the IMF’s recent statement was evident, as he argued that the IMF was discouraging tax exemptions in all sectors. Asserting Pakistan’s sovereignty, he said, “As a sovereign country, we should have the right to grant tax exemptions where necessary. We know how much tax we need to collect and from where.”

In light of Dar’s latest remarks, Pakistan and the IMF relations seem to further strain with the country seeking to maintain its economic autonomy and ensure policies that align with its national interests.

Web Desk