Share:ISLAMABAD - The Ministry of Economic Affairs has noted that Pakistan’s risk of default is low mainly due to the revival of the International Monetary Fund’s programme, loans from multilateral and bilateral development partners and issuance of bonds in the interna­tional market. “Pakistan’s risk of default is low mainly due to the following reasons. Finally, the government is cognizant of the default risk and initiated appropriate measures like taxing the wealthy, reducing subsidies, and re-adjust­ing the fuel, electricity, and gas prices to re­duce the burden on the exchequer. In this regard, the IMF de­scribes the usability of debt ratios as “Debt ra­tios should be considered in conjunction with key economic and financial variables, in partic­ular expected growth and interest rates, which determine their trend in medium-term scenar­ios”. Foregoing in view, the macroeconomic in­dicators in respect of Pakistan’s economy as described above are relatively better than that of Sri Lanka.

Source: The Nation September 13, 2022 19:57 UTC