IMF deal to help Pakistan avoid default, says Miftah

F.P. Report

KARACHI: Former Finance Minister Miftah Ismail Thursday while speaking at the World Islamic Economic Forum Conference said the issues of the government with the International Monetary Fund (IMF) will be resolved and the default threat will be averted.

Miftah Ismail said that the IMF team is in Pakistan currently and all the issues with the government will be resolved which will ultimately avert the threat of Pakistan being defaulted.

He said that in recent days, the value of the dollar increased unnecessarily as people thought that dollar’s value will sustain at Rs 230 and everyone bought it when it was expected to rise. People bought dollars instead of machinery or land. However, the demand will decrease after IMF deals and also when people will release their dollars in the market.

He said that the conference was held to actually make the Pakistani economy Islamic. Gradually, our banking system is moving towards being Islamic banking which earns more profit at the end of the day.

However, he said that the Sukuk bonds are facing some difficulties at the moment and we should observe the Malaysian system of Sukuk bonds.

Pointing out the lack of education, he said that 50% children are not even going to the primary schools and from amongst the 50%, half of them go to private schools and the others go to government schools. Even after 75 years, half the children in the country are still not able to study. The only reason behind India being ahead of us in the export sector is that every child goes to school. Our children are out of schools and not getting education. The provincial government only pays the teachers with the thousands and billions it is getting from the center.

Our grain production is lesser than India’s and China’s and our cotton and rice production is also lesser than that of India. Pakistan’s Imports are worth Rs80 billion whereas the exports are only worth Rs30billion. We only have remittances worth Rs30billion whereas we are facing a trade deficit worth Rs19billion. Pakistan has to pay back Rs2billion every year and we just circulate the loans for paying the debts. We cannot progress and prosper until and unless we become an exporting country and that is possible when the education sector is improved.

Miftah Ismail said that the country has not at all defaulted neither it will. We went off the track four months ago and if Shaukat Tarin had not broken the IMF contracts in February, the situations would have been very different. The value of Dollar cannot be controlled and it is better that it stays free floating. He said that there were imports worth Rs80billion in Imran Khan’s reign. “Ishaq Dar raised questions at my policies to which I have answered.” said Miftah.

Ismail, confirming his membership at the party said that Shahid Khaqan Abbasi has also said that I am a part of the party and will remain a part. I have only stepped back from my position.