As the rupee slumped to a historic low of 285.09 against the dollar, Finance Minister Ishaq Dar on Thursday claimed that “malicious” rumours that Pakistan defaulting were being spread by “anti-Pakistani elements”.
In a series of tweets, the finance minister said that negotiations with the International Monetary Fund (IMF) related to the completion of the ninth review of a $7 billion loan programme were near conclusion.
Anti-Pakistan elements are spreading malicious rumors that Pakistan may default. This is not only completely false but also belie the facts. SBP forex reserves have been increasing and are almost
US $ 1 billion higher than four weeks ago despite making all external… 1/2— Ishaq Dar (@MIshaqDar50) March 2, 2023
due payments on time. Foreign commercial banks have started extending facilities to Pakistan. Our negotiations with IMF are about to conclude and we expect to sign Staff Level Agreement with IMF by next week. All economic indicators are slowly moving in the right direction. 2/2
— Ishaq Dar (@MIshaqDar50) March 2, 2023
Once the deal is signed, the lender will disburse a tranche of more than $1 billion from the $6.5 billion bailout agreed to in 2019, which will serve as a lifeline for the country that has reserves barely enough for three weeks of essential imports.
The finance minister added that the staff-level agreement with the global lender will be signed by next week.
He claimed that the rumours about the possible default were not true and stated that the “State Bank of Pakistan forex reserves have been increasing and are almost US $ 1 billion higher than four weeks ago despite making all external due payments”.
He concluded that these are positive indicators.
