Friday May 13 2022

Imran's deal with IMF and its violation reason for rise in inflation: Miftah Ismail

Finance Minister Miftah Ismail. — Reuters/File
Finance Minister Miftah Ismail. — Reuters/File 

  • Ismail says Imran Khan's deal with IMF, its violation reason for inflation.
  • Says Khan took biggest loan in country's history during his term, which is 80% of total debt of 71 years.
  • "We will get out of this mess and the stock exchange will go up once again," he says. 

Finance Minister Miftah Ismail on Friday blamed PTI Chairman Imran Khan's deal with the International Monetary Fund (IMF) and its violation as the reason for the rise in inflation.

Berating the PTI-led government, the finance minister, in a statement, said that the subsidy on petrol has put a strain on Pakistan's economy.

 "There has been a loss of Rs120 billion this month and no government can bear such a huge deficit," he said. 

He added that it is not an easy task to stabilise the economy that Imran Khan has left behind in shambles.  "There is a difference between the petrol prices in the world market and the selling price in Pakistan," added Ismail. 

The finance minister said that the petrol subsidies are the reason for the rise in inflation and the turmoil in the market. "If the government gives subsidies without having money, then it has to take more loans, increasing the interest rates, and putting pressure on the rupee," he said. 

Also read: Rupee continues to lose steam, crosses 192-mark

The PML-N said that the former premier took the "biggest loan in the country's history during his tenure, which was 80% of the total debt of 71 years. 

"Khan borrowed Rs20,000 billion," he said, adding that Khan left Rs10.4 billion in the foreign exchange reserves which are equivalent to 45 days of imports. 

"The foreign exchange reserves should be double the amount," he said, adding that the PTI chairman created issues in relations with all the countries, including China and Saudi Arabia. 

Praising the incumbent government, the PML-N leader said the dollar plunged when Shehbaz Sharif became the prime minister and the stock exchange increased to 1,700 points. 

"We left the growth rate at 5.8% during the Nawaz Sharif-led government and inflation at a low of 3.4%. We will get out of this mess and the stock exchange will go up once again," he assured the masses, adding that Khan will have to answer the nation for his crimes.