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Govt denies rumours about imposing economic emergency
December 06, 2022

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In a statement, the Finance Division categorically denied it and said that there is no planning to impose economic emergency. It said the message is unfortunately aimed at creating uncertainty about the economic situation in the country and can only spread by those who do not want to see Pakistan prosper.

It said creation and spread of such false messages is against national interest in these times of economic hardship. A mere reading of the nine points mentioned in the message indicates how far-fetched those suggestions are. It is also quite inappropriate to equate Pakistan with Sri Lanka, given inherent strength and diversity in Pakistan's economy.

The present difficult economic situation is mainly the result of exogenous factors like commodity super-cycle, Russia-Ukraine war, global recession, trade headwinds, Fed's increase in policy rates and devastation wreaked by unprecedented floods.

It further said the Government has been making utmost efforts to minimize the impact of such external factors, even when faced with the economic consequences of unprecedented floods and having to meet IMF conditionalities. The Government remains committed to completing the IMF program while meeting all external debt repayments on time.

In this challenging economic situation, the Government has put in place a number of austerity measures with the approval of the Federal Cabinet. Such measures are in public knowledge and are aimed at eliminating non-essential expenditures.

Similarly, the Government has been deliberating energy conservation mainly aimed at reducing the import bill. Such deliberations will continue in the Cabinet and all decisions will be taken in consultation with all stakeholders and in the best national interest.