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Business News/ News / World/  Pakistan Minister admits country's ‘bankruptcy’, says solution doesn't lie with IMF
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Pakistan Minister admits country's ‘bankruptcy’, says solution doesn't lie with IMF

Pakistan economic crisis: The country's rupee has fallen sharply against the dollar since an artificial cap on the local currency was removed last month to allow its value to be decided by a market-based exchange rate.

Pakistan Defense minister Khawaja Asif. (Reuters)Premium
Pakistan Defense minister Khawaja Asif. (Reuters)

Pakistan has been struggling with a huge economic crisis with milk prices surging to 250 per litre, and chicken prices have shot up to 780 per kilograms. Defense minister Khawaja Asif has declared that the country has gone “bankrupt".

He said that the solution to the country's economic problem lies within Pakistan, not with the International Monetary Fund (IMF) which has not announced any assistance package so far, according to Samaa TV reports.

Asif also revealed that selling two of the golf clubs, which have been on government land, will help Pakistan to cut down its one-fourth of debts. The PML-N leader also blamed politicians and bureaucracy for the current economic downfall of the country.

A video of Pakistan's defense minister claiming the country's bankruptcy has been posted on social media platforms. In the video, Asif confessed that Pakistan is already in default and PM Shehbaz Sharif has brought the country to a “sorry state" in 10 months.

Take a look at the video below,

Meanwhile, Pakistan's political party Tehreek-e-Labaik Pakistan (TLP) has given a 72-hour 'ultimatum' to the Pakistan Muslim League-N (PML-N) led the government to withdraw the latest hike on petroleum products, The Express Tribune reported.

Addressing a press conference here, TLP chief Saad Hussain Rizvi warned that if the government does not withdraw the price hike, the party would do "what it is known for"-- a reference to protest marches in the recent that brought the federal capital to a standstill.

The Pakistani government increased the petrol price by up to 22.20 and diesel 17.20 per litre on Wednesday amid spiraling inflation as the country continues to face an economic crisis. 

He said that the rulers of the country were begging the International Monetary Fund (IMF) for the 23rd time in 75 years, adding that Pakistan's debt had increased by 23 per cent in just one year.

He claimed the rulers were now thinking of making IMF visit the country's nuclear plants and weapons sites. "The poor man has been squeezed to such an extent that he is unable to even think of protest," he added.

The price of high-speed diesel has been increased to 280 per litre after a hike of Rs17.20. Kerosene oil will now be available at 202.73 per litre following a 12.90 hike. Meanwhile, light diesel oil will be available at Rs196.68 per litre after an increase of 9.68, reported Geo News.

The Pakistani rupee has fallen sharply against the dollar since an artificial cap on the local currency was removed last month to allow its value to be decided by a market-based exchange rate.

 

(With inputs from agencies)

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Published: 19 Feb 2023, 06:39 AM IST
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