Ishaq Dar, Pakistan’s new finance minister, stated that he will attempt to control inflation while lowering interest rates on Wednesday. He also claimed that the currency was overvalued and promised a robust reaction to the country’s greatest economic crisis.
The chartered accountant is in his fourth year of employment and is dealing with a balance of payments crisis, foreign reserves that are barely enough to cover one month’s worth of imports, historic lows in the rupee, inflation that is over 27%, and the fallout from severe floods.
After being sworn in, Dar informed reporters in televised remarks, “We will manage inflation.”
He declared, “We will lower interest rates.” He made no mention of how he would lower rates while also calming price pressures.
The Pakistani rupee was undervalued, according to Dar, who also issued a caution to currency market speculators. Compared to the US dollar so far this year, it has lost more than 30% of its value.
