PML-N’s Dar says party paid heavy political price to prevent Pakistan from defaulting

LONDON: Former finance minister Ishaq Dar said on Friday that his party, the Pakistan Muslim League-Nawaz (PML-N), paid a heavy political price to prevent Pakistan from defaulting on its international loan obligations.

Dar, who is in London along with former prime minister Shehbaz Sharif, made the remarks during a media briefing after meeting with PML-N supremo Nawaz Sharif.

“Our country was at the brink of default,” Dar said. “The foreign exchange reserves had fallen to $10.3 billion in April 2022, the lowest level in 19 months. Inflation had risen to 13.8% in June 2022, the highest level in 13 years. And the Pakistani rupee had lost more than 11.7% of its value against the US dollar in the past year.”

Dar said that the PML-N government had to take “difficult decisions” to prevent default, including raising taxes and cutting spending.

“These 14 or 15 months were a battle to prevent default,” he said. “PML-N paid a high political cost but it was worth it. We sacrificed politics to save the state.”

Dar also said that the PML-N government had made significant progress in improving the economy since then.

“As of today, the foreign exchange reserves have risen to $16.4 billion,” he said. “Inflation has come down to 11.5%. And the Pakistani rupee has stabilized against the US dollar.”

Dar said that the PML-N would continue to work hard to improve the economy and put Pakistan on the path to sustainable growth.

Facts and figures

• As of July 8, 2023, Pakistan’s foreign exchange reserves stand at $16.4 billion.
• Inflation in Pakistan stood at 11.5% in June 2023.

Commentary

Dar’s remarks are a reminder of the difficult economic situation that Pakistan faced when the PML-N came to power in April 2022. The party has taken a number of steps to improve the economy, and the latest statistics show that these measures are having a positive impact.

However, the economic situation in Pakistan remains fragile, and the PML-N will need to continue to take tough economic decisions in order to put the country on a sustainable path of growth.

The PML-N is hoping to return to power in the next general election, which is due to be held in 2023. If the party is successful, it will need to continue to work hard to improve the economy and create jobs for the people of Pakistan.