Pakistan Crisis: Pakistan will be ruined if it follows the path of Sri Lanka… Former finance minister warns
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Miftah Ismail said, ‘Countries that have adopted this route, such as Sri Lanka, have taken some time to complete it. During the first year, Sri Lanka’s GDP shrank by 10 percent. If we do this and it takes 2-3 years, our GDP will shrink. He said that Pakistan’s interest payments on dollar-denominated loans are low and that much debt cannot be restructured due to the nature of their creditors.
Demand for loan restructuring is gaining momentum
Ismail said that commercial loans, which are not huge, are the only ones that can be restructured. But how much can you benefit from it? Ismail’s statement comes at a time when the talk of loan restructuring is gaining momentum. According to a Bloomberg report, central bank governor Jameel Ahmed said last week that Pakistan needed to repay about $3 billion in debt by June, while $4 billion was expected to roll over.
Ismail giving the example of India-Bangladesh
Pakistan’s concerns have also increased due to the continuous delay in reviving its bailout program with the International Monetary Fund (IMF). It has been stalled since November last year. Earlier Ismail had said that Pakistan needs to learn from India. He talked about laying emphasis on education and IT sector. Giving the example of Bangladesh, Ismail said that he educated his girls and today they are running the textile industry of the country. ‘If India and Bangladesh can do it, why can’t we?’
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