Mohammad Zubair warns of default risk if friendly countries demand repayment
Foreign direct investment is currently at its lowest level since 1974
Islamabad: Pakistan Tehreek-e-Insaf (PTI) leader Mohammad Zubair has warned that the country could face a default situation if friendly countries demand the return of their deposits.
Addressing a press conference in Islamabad alongside Salman Akram Raja and Asad Qaiser, Zubair said that of Pakistan’s total foreign exchange reserves of around $16 billion, approximately $12.5 billion consists of deposits from friendly countries.
He stated that concerns arose when the United Arab Emirates reportedly requested the return of $3.5 billion, adding that “if friendly countries simultaneously ask for their money back, the country would default.”
Zubair said that Pakistan’s economic stability now depends heavily on financial support from allied nations. He added that economic growth should be measured through GDP performance, noting that Pakistan’s GDP growth over the past four years has been among the worst in its history.
He further claimed that foreign direct investment is currently at its lowest level since 1974. According to him, despite repeated assurances from government officials, economic conditions have not improved.
Zubair said his party has prepared a 10-point economic white paper aimed at addressing structural challenges in the economy.
Comparing Pakistan with other countries in the region, he questioned why inflation remains significantly higher in Pakistan despite lower inflation rates in neighbouring economies.
He also expressed concern over declining investor confidence, stating that several multinational companies that had operated in Pakistan for 40 to 50 years have exited the country, while continuing operations in other regional markets.
