ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has announced that his party is developing a “viable way” to revive the country’s economy if it comes to power.
Speaking to the Financial Times, Khan said the plan involves negotiating with the International Monetary Fund (IMF) on a “viable solution of being able to pay our debts” while ensuring that the country’s economy is not choked so its ability to pay its debt doesn’t decrease.
Pakistan is currently in talks with the global lender to secure a final tranche of $1.1 billion as part of a $6.5 billion bailout package.
Imran Khan criticized the government for its inability to take the country out of its current economic crisis, stating that it “needed to break out of the vicious borrowing cycles that have held back developing economies.”
He emphasized the importance of reform, saying that Pakistan will struggle to break out of the vicious cycle of debilitating debt repayments without it. Khan added that his party would prioritize domestic reforms over seeking debt relief and ruled out a default if the PTI returns to power.
Imran Khan raises concern over Pakistan’s ability to pay debts
Imran Khan’s plans to revive the economy after coming to power include restructuring loss-making state-owned enterprises and boosting the tax base. He also raised concerns about Pakistan’s ability to pay its debts if Pakistan’s dollar income does not improve or increase.
“Unless we increase our dollar earnings to exports, I don’t see how we would be able to service any debts in Pakistan — whether it’s Chinese or Paris Club or commercial debts,” Khan said.
The PTI chief highlighted the need to restructure the way the country is run, stating that “we have to conduct surgery in Pakistan in the way we run our government.” Khan also emphasized the need to focus on increasing the country’s dollar earnings through exports rather than relying on loans.
The IMF has expressed confidence that a deal with Pakistan would be signed “soon,” following Finance Minister Ishaq Dar’s repeated assurances over the past few months that a deal was imminent.
However, Imran Khan’s comments suggest that the PTI is already preparing for the possibility of coming to power and addressing Pakistan’s economic challenges.
