We have not increased debt burden to clear circular debt: Ishaq Dar

Pakistan’s Finance Minister in an exclusive interview with Hamid Mir of Geo news said that the government has not incurred more debt to clear circular debt of power generation companies. He said that because of this step there is now additional supply of 1700MW to the national grid. He said that circular debt was cleared through savings and recovery from other institutions. He said the previous government played politics of energy tariff by rejecting the recommendations of NEPRA. He said that the tariff is linked to energy prices in the international market and failure to do so will continue the circular debt issue.

He said that the rupee has weakened against the US dollar because of speculation and demand from gold importers. He said that gold import has increased from 200kg to 1400kg which has created the weakening of the Pakistani currency. He said that the government has imposed a ban of 30 days on providing financing for gold. He negated the opposition view that rupee has devalued because of an IMF deal. He said that the IMF agreement will be presented to the parliament for approval so it will be very transparent.

He said that previous government took loans and wasted it in corruption. He said that their government has to pay $3 billion of loans in next few months.

There is increasing complaint from the consumers that the inflation has been at a record level since the formation of new government. The economy has also not shown any considerable recovery. No long term economic development plan has been presented by the current government.

Watch complete interview of Ishaq Dar at this link.

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