ISLAMABAD: Finance Minister Miftah Ismail has said that the rise in inflation is due to the effects of Imran Khan’s agreement with the IMF and its violation.
He said that the rise in the value of the dollar is the effect of Imran Khan’s agreement with the IMF and its violation. It is not an easy task to bring the economy back on track.
The finance minister said that the subsidy on petrol has put severe financial pressure on Pakistan’s economy. There is a difference between the purchase price of petrol in the world market and the selling price in Pakistan, he said. The government is losing billions of rupees due to subsidy on petrol. The loss was estimated at Rs120 billion this month. No government can afford such a huge deficit, he said.
Miftah Ismail said that this is the reason why there is turmoil in all the markets and inflation is spreading. The government does not have money and if it still gives subsidy then more loans have to be taken. Therefore pressure on rupee with increase in interest rates will grow. Imran Khan took the biggest loan in history, Imran Khan borrowed 80% of the total loan of 71 years in three and a half years. Imran Khan has borrowed 80% of the total loan for 71 years in three and a half years. Imran Khan has borrowed Rs20,000 billion in three and a half years.
The finance minister further said that Imran Khan has given up Rs10.4 billion foreign exchange reserves. Foreign exchange reserves are equivalent to only 45 days of imports, this situation of foreign exchange reserves is dangerous. It should be at least doubled, foreign exchange. The situation of Pakistan’s reserves has increased the economic pressure of Pakistan. Imran Khan violated the written agreement with the IMF which we had to restore. Imran Khan created problems in relations with China, Saudi Arabia and all countries.
Miftah Ismail asked Imran Khan to answer why he took dollar from 115 to 189? The dollar was at 189, the dollar came down after the arrival of Shehbaz Sharif. The stock exchange had confidence in Shehbaz Sharif as it increased 1700 points.
He further said that in Nawaz Sharif era we had left growth rate at 5.8%. In Nawaz Sharif era we had left inflation at minimum 3.4%. Due to four years of looting, incompetence and mafia rule, inflation has skyrocketed. Imran Khan will have to answer for his crimes against the country and the nation. We will get out of this quagmire and the stock exchange will go up again, he said.
