Pakistan stabilised after default threat, Govt tells senate

The government has stabilised Pakistan’s economy after steering the country away from the risk of sovereign default and is now prioritising sustainable growth and job creation, State Minister for Finance and Revenue Bilal Azhar Kayani told the Senate on Friday.

Responding to a calling attention notice moved by Senator Ali Zafar, the minister said the present administration took difficult but necessary decisions soon after assuming office to revive the International Monetary Fund programme, restore confidence among international partners, and stabilise the economy.

He said that despite resistance and repeated attempts to derail the process, the government succeeded in rebuilding trust and averting default, laying the groundwork for a more stable and resilient economic path.

Kayani strongly criticised the economic policies pursued between 2018 and 2022, stating that repeated policy failures during that period weakened the economy and pushed millions of Pakistanis below the poverty line, bringing the country close to default.

He told the House that the previous PTI-led government changed four finance ministers and mishandled its engagement with the IMF, initially rejecting the programme, later accepting it on weak terms, and eventually undermining it for political reasons.

The minister alleged that when the PTI government realised it was losing power, it deliberately sabotaged the IMF agreement despite being aware that such actions could push the country towards default.

Commenting on parliamentary engagement, Kayani said forums such as standing committees were available for constructive input, but opposition members often failed to attend meetings or contribute meaningfully, limiting their role to speeches and television appearances.

He said the government remained open to constructive engagement from all sides and was committed to expanding employment opportunities and ensuring sustainable economic growth going forward.