Pakistan will not default, will make bond payments on time: Dar.

Finance Minister Ishaq Dar on Saturday said Pakistan will not default and would meet its upcoming $1 billion dollar bond payments.

The finance minister was addressing a press conference via video link from Islamabad. He said that there were rumours that the country would not be able to pay $1bn on December 5 against the maturity of five-year sukuk, or Islamic bonds.

'We have never defaulted before. We will not even be close to default ... Let me clear this categorically that the bond will be paid and there is no delay in this and even arrangements have been made in principal for upcoming payments in the next year,' he said.

Dar said that no one should worry about the rumours, claiming they were being spread seemingly for political purposes. 'This is highly irresponsible behaviour,' he added.

Dar said that another rumour was spread about Pakistan's credit default swap. 'Our international bonds have very small transactions ... and technically there should be no impact on them,' he added.

The finance minister said that people should desist from speculation about increased risk, saying that such 'irresponsible statements' would hurt the country and should be avoided.

He said there was another rumour spread about fuel reserves depleting in the next few days. 'There is nothing like this. The reserves are present at the level they should be and there is no need for worry,' Dar explained, once again calling for rumours to be avoided.

Regarding the current account deficit, Dar said it was under strict watch and being monitored and managed for the national interest. He said it was $316 million in September and was expected to be below $400m in October.

'If this continues at the same pace then it will be around $5-6bn for the year [while] the projected was $12bn,' the finance minister said.

He once again said that the country came prior to any political affiliation and requested people to avoid rumours about the economy and issue statements with responsibility.

'Your statements have an effect and as a result queries come.'

He reiterated that everything was in order and that bond payments would be made on time in the first week of December.

The PTI has recently raised alarms about the economic situation and alleged that the government is not able to control it.

'Businesses are in deep crises and politicians/media have not highlighted this...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT