Pakistan avoided becoming Sri Lanka: Ismail Miftah

Following the coalition government’s considerable policy adjustments and austerity measures, Finance Minister Miftah Ismail stated that severe concerns about Pakistan following in the footsteps of Sri Lanka and entering a default-like situation had been alleviated.

Miftah Ismail told CNBC that the high cost of energy imports has recently pushed Pakistan to the edge of a balance of payments crisis.

He asserted that Pakistan’s foreign currency reserves had dropped to as low as $9.8 billion, which was only enough for five weeks of imports, and that the Pakistani rupee had fallen to record lows against the US dollar this year.

In response to a question regarding rising inflation, the minister stated that the global rise in the cost of oil and other commodities was the primary cause of the country’s inflation.He did, however, say that the country is now on the right track.

The finance minister insisted that the coalition administration has taken severe measures to get the country out of its economic turmoil. According to Miftah Ismail, the rupee has recovered roughly 7% against the US dollar in the last week.