ISLAMABAD: Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar once again clarified that there was no question of Pakistan going into default as the same had been averted, though at a very high political cost.

“I want to give a message to markets through this conference… no need to get nervous, we are back to business, Insha’Allah we will arrange everything. Nothing is to worry about,” the minister said while addressing the All Pakistan Chartered Accountant Conference in Islamabad on Wednesday.

The finance minister said that nobody should have any problem because “Pakistan will not default”. There were serious challenges the country had been facing, however, the incumbent government had rescued it from default although it had to give a very high political cost.

“If there is a choice between state or politics, the priority should be the state and not the politics as if the country is there, there may be politics. If there is no county where there will be politics?” he asked.

Dar said the country would require around $32-34 billion to fulfill its liabilities and financial needs for the fiscal year 2022-23. “These include around $22 billion multilateral-level debt liabilities and around $12 billion current account deficit.”

He, however, vowed that the government would work hard to fulfill the sovereign guarantees to save the country’s pride.

The minister clarified the government’s position about the rescheduling of the Paris Club’s debts, saying that soon after assuming the charge of the finance ministry, he had announced that the government would not approach the Paris Club for rescheduling of loans.

The finance czar rejected the speculations about extending bond maturity dates beyond December 2022. “Pakistan is a sovereign country so it should meet its obligations in time for its own credibility and honour,” he added.

He urged the chartered accountants to play their role and influence politicians to work for the betterment of national economy.

Dar said the country had deep challenges which were further increased by the devastating floods. “I am confident that everything will be corrected as was done back in 1998-99 and 2013, when the country was facing similar challenges.”

He said in its last tenure, the Pakistan Muslim League-Nawaz (PML-N) government had put the economy on growth path and it was predicted that it would become the 18th big economy, leaving behind Canada and Italy, however, due to political interest of some parties it could not be done.

Had the political parties joined hands together, the country would have achieved the target of becoming the 18th big economy by 2026, however, due to political instability, it now stood at 54th position, he lamented.

“I have always favoured a Charter of Economy that will help put the economy on a sustainable growth path,” he remarked.

The minister said the PML-N assumed power in 2013 at a time when the country was facing serious macroeconomic challenges and it was predicted to be going into default in six to seven months. “The government fixed the problems and took the economy towards growth,” he added.

The minister said that the whole world had acknowledged the progress at that time while the country’s ratings went up, the Consumer Price Index (CPI) based inflation was recorded at 4 percent and food inflation at 2 percent. “The country had stable currency around Rs104 in parity with dollar and had reserves of around $26 billion,” he added.

Had that journey been allowed to continue, the country would have become member of the G20 club and the 18th big economy, the minister said.