Risk of default if current account deficit not controlled, warns Miftah

Risk of default if current account deficit not controlled, warns Miftah

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Risk of default if current account deficit not controlled, warns Miftah

ISLAMABAD (Dunya News) - Federal Finance Minister Miftah Ismail on Sunday warned that there is a risk of default if the current account deficit is not controlled.

In a statement, Miftah Ismail said that PTI had given four deficit budgets during its tenure and this year, Pakistan’s trade deficit will be the largest in history.

The Finance Minister explained that there was no other way to save the country from defaulting but to impose tax on the rich.

“There is a risk of default if the current account deficit is not controlled,” he added.

While talking about the super tax, he underscored it’s importance for the country’s survival saying that all the bigwigs are obliged to pay super tax and further quoted that even the PM’s son and he himself are obliged to do so. The rich have to come forward and make sacrifices, he continued saying.

The Finance Minister further added that this year, Pakistan’s tax-to-GDP ratio will be 8.6 percent. Pakistan’s tax-to-GDP ratio is one of the lowest in the world and this year, Pakistan’s primary deficit will be about Rs1600 billion.