NEW DELHI, June 6 — There is no financial emergency in Pakistan but the government will come up with an austerity plan, the country’s Finance Minister Miftah Ismail said on Monday.
The minister quashed social media speculation that the government could freeze bank accounts of overseas Pakistanis under the “Roshan Digital Accounts” initiative amid a tight foreign exchange situation.
“There is absolutely no plan to freeze foreign currency accounts or Roshan Digital Accounts or take over people’s private lockers. We have never even contemplated these steps. Nor will we ever do it,” Miftah said.
Pakistan is facing difficulties in securing external financing and last month held talks with the International Monetary Fund (IMF) to borrow money.
Miftah said Prime Minister Shehbaz Sharif “will at some point announce austerity measures to save government expenditures”.
These austerity measures would include reducing work days to save energy, reduction in fuel quota of bureaucrats and a ban on purchases of new vehicles and creation of new posts by government departments, according to a report on The News website.
“But there is not going to be any declaration of financial emergency. Nor is there any financial emergency. After two increases in petrol prices, we are out of the financial crisis,” Miftah said in a social media post.
The IMF had asked Pakistan to remove energy subsidies before it could provide loans under a package agreed in 2019.
The Pakistan government has hiked petrol and diesel prices by 60 rupees in recent days, fuelling resentment among average Pakistanis and raising fears of rising inflation.
— Bernama
