Federal Finance Minister Miftah Ismail has said that Pakistan will not go bankrupt due to debts despite the devastating floods.
In an interview with the British news agency, Miftah Ismail said that the path to economic stability was difficult in the challenging situation. The answer has become more difficult. If we continue to make wise decisions, we will not be completely bankrupt.
The finance minister said that despite the devastation caused by the floods, most of the policies and targets related to economic stability, including increasing the falling foreign exchange reserves, are still on track.
He said that even if the current account balance is damaged by up to 4 billion dollars in further imports such as cotton due to flood and there is a negative impact on exports, even then Pakistan will be able to increase the foreign exchange reserves by up to 4 billion dollars.
Miftah Ismail said that after the flood, the current account deficit will not increase more than 2 billion dollars. And bond prices have also fallen but the market is expected to return to normal in 15 to 20 days.
The Minister of Finance said that more than 4 billion dollars of external financial resources have been secured, while in the current financial year about 5 billion dollars will be invested from Qatar, United Arab Emirates and Saudi Arabia, 1 billion for oil. A legal document is soon to be signed with a friendly country to enable the facility of dollar arrears.