Finance Minister Miftah Ismail on Monday said that the dollar was extending gains against the local currency due to the rising greenback demand for import payments.

Speaking exclusively on Aaj News programme ‘Faisla Aap Ka’, the finance minister said that the worst challenge the country’s economy was facing was not becuse of appreciation of the dollar against the local currency but the recent rains and floods which have caused economic damages to the tune of around $18 bn.

Miftah said that due to devastating floods, the economy is going through hard times that have damaged the agriculture sector badly.

The minister said in view of the contribution of agriculture to the GDP, the country would have to face major revenue loss due to crop losses as almost 80 per cent of crops in Sindh, which produces roughly 30% of Pakistan’s cotton output, were destroyed.

The finance czar said that the market was expecting the export of wheat and cotton which, he said, was the reason behind the depreciation of the local currency against the dollar.

He said that the government will allow the textile industry to import as much cotton as it needs to keep the looms running, adding that the country would also have to export wheat, rice and other edible.

“More than half of Sindh’s onion crop has been destroyed and 80% of the rice crop has also been destroyed,” he added.

The finance minister warned that due to the flood, there would be a large trade deficit of two to four billion dollars.

He said that the incumbent government had strengthened the local currency against the dollar by increasing the dollar inflow. “We have imposed a ban on imports and reduced the outflow of dollars,” he added.

Miftah said that when the incumbent government came into power there was a serious threat of default as the foreign exchange reserves were US $10.5billion while US $36billions were required for debt repayments and other expenses.

Miftah said that LNG had never been so expensive in history adding that petrol, fertilizer and wheat were expensive all over the world.

Lashing out at Imran Khan for destroying the economy, the finance minister said that Imran Khan-led government increased Pakistan’s debt by 80% during its 4-year tenure.

He said that the PTI-led government had not bought oil from Russia, but “if someone gives us cheap oil, we will definitely buy it.” He said that he was ready to buy gas from Iran.