The Finance Division denied reports of a “economic emergency” being declared in Pakistan on Tuesday, saying such messages were spread by elements who do not want the country to prosper.
“Finance Division not only strongly rebuts the assertions made in the said message, but also categorically denies it and that there is no planning to impose economic emergency,” a statement from the division read.
The statement mentioned that the message is “unfortunately aimed at creating uncertainty” about the economic situation in the country and can only be spread by those “who do not want to see Pakistan prosper”.
The division stated that creating and spreading such false messages was against the national interest during these difficult economic times.
Finance Division issues a rebuttal on false message on supposed economic emergency proposals been circulating on social media. pic.twitter.com/chTW80SyZV
— Ministry of Finance, Government of Pakistan (@Financegovpk) December 6, 2022
“A mere reading of the nine points mentioned in the message indicates how far-fetched those suggestions are,” the division said, noting that it was quite “inappropriate” to equate Pakistan with Sri Lanka, given the inherent strength and diversity in the country’s economy.
In defending itself, the division stated that the current difficult economic situation is primarily the result of exogenous factors such as the commodity super-cycle, the Russia-Ukraine war, global recession, trade headwinds, the Fed’s policy rate increase, and the devastation caused by unprecedented floods.
“The government has been making utmost efforts to minimise the impact of such external factors, even when faced with the economic consequences of unprecedented floods and having to meet the IMF’s (International Monetary Fund) conditionalities.”
According to the statement, the government remains committed to completing the money lender’s programme while meeting all external debt repayments on time.
In this difficult economic environment, the government has implemented a number of austerity measures with the approval of the federal cabinet, according to the statement.
According to the Finance Division, such measures are widely known and are aimed at reducing non-essential spending.
Similarly, the government has been deliberating energy conservation, primarily to reduce the import bill, which has decreased in the first four months of the current fiscal year, according to the statement.
The import bill has been trending downward since the start of the current fiscal year, with imports falling by 10.4% in July, 7.7% in August, 19.7% in September, 27.2% in October, and 33.6% in November compared to the same months in 2021.
Such discussions will continue in the cabinet, and all decisions will be made in consultation with all stakeholders and in the best interests of the country, according to the statement.
The current government’s efforts have brought the IMF programme back on track, and negotiations for the ninth review are now well underway, according to the report.
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