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LONDON: Former State Bank governor Reza Baqir has said that he is “more concerned than ever” over Pakistan’s proximity to default.
The former governor of the central bank stated that the nation needs a positive connection with the financial institutions it hopes to rely on for support during the Pakistan Literature Festival’s closing session, which was held here on Saturday.
Titled ‘The root causes of Pakistan’s Economic Crisis and how to address them’ and moderated by Nadir Cheema, the all-male discussion panel also featured economist Ishrat Hussain, Zafar Masud and former FBR chairman Shabbar Zaidi.
“I always try to be cheerful in public communication. But it comes down to this: if you are a company or person who needs financial support to get through, it is the first step to have a constructive relationship with whatever financial institution will give you that support,” Dr Baqir told a packed hall.
“I am concerned because our relationship with the international financial community has not improved over the last few months. The deterioration comes in terms of substance and communication. If we want to avoid default, we have to have a constructive relationship with those who are there. We cannot antagonise the people whose generosity we need. But it looks like that is not where it is headed.”
He said if there is a default, Pakistan will go through a “painful, protracted process”.
