Finance Ministry Refutes False Reports of Imposing Economic Emergency Measures

The Finance Ministry has issued a circular rebutting the false reports circulating on social media regarding the government preparing to implement economic emergency measures in the country.

According to the circular, the Finance Division strongly refutes and denies reports of the government preparing to impose economic emergency measures in the country as shared online by some on social media. “The message is unfortunately aimed at creating uncertainty about the economic situation in the country and can only spread by those who do not want to see Pakistan prosper.” the circular said.

“Creation and spread of such false messages is against national interest in these times of economic hardship. A mere reading of the nine points mentioned in the message indicates how far-fetched those suggestions are. It is also quite inappropriate to equate Pakistan with Sri Lanka, given inherent strength and diversity in Pakistan’s economy.” the statement added.

“The present difficult economic situation is mainly the result of exogenous factors like commodity super-cycle, Russia-Ukraine war, global recession, trade headwinds, Fed’s increase in policy rates and devastation wreaked by unprecedented floods.” the circular continued.

It added that the Government of Pakistan has been making utmost efforts to minimize the impact of such external factors, even when faced with economic consequences of unprecedented floods and having to meet International Monetary Fund (IMF) conditions.

“The Government remains committed to completing the IMF program while meeting all external debt repayments on time.” the Finance Ministry said. “In this challenging economic situation, the Government has put in place a number of austerity measures with the approval of the Federal Cabinet.” it added.

It said that such measures are in public knowledge and are aimed at eliminating non-essential expenditures, adding that the government has been deliberating energy conservation mainly aimed at reducing the import bill in order to save depleting foreign exchange reserves.

However, it said that such deliberations will continue in the Cabinet and all decisions will be taken in consultation with all stakeholders and in the best national interest.

“With the efforts of the current government, the IMF program has come back on track and negotiations leading to 9^th Review are now at an advanced stage.” the ministry said. “Government’s recent efforts have resulted, amongst others, in lower current account deficits in recent months and achievement of FBR revenue targets.” it added in the circular.

It mentioned that easing up of pressure on external factors is also foreseen in the near future. “While there remains the need to make structural adjustments in the mid-term, the economic situation of the country is now moving towards stability.” the ministry said.

Finance Division urges the people of Pakistan to contribute towards economic betterment and stability and not to pay heed to malicious rumors mongering which is against the national interest of Pakistan.

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