Pak rupee will further strengthen in coming days: Ishaq Dar
ISLAMABAD, Oct 11 (SABAH): Senior leader of Pakistan Muslim League-Nawaz (PML-N) and Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar has said that Pakistani rupee was gaining grounds in comparison with dollar and it will further strengthen in the days to come.
Mohammad Ishaq Dar said this during in an interview with a private TV channel. He said that a game was played with rupee which now has become story of past and added if someone visits market for selling out dollars, the money changers will give him Rs 10 less than its price at Inter Bank, whereas as compared to rupee price, dollar’s real price was less than Rs 200.
He said that banks earned Rs 50 billion while increasing spurious price of dollar and added action will be taken in connection with this though declined to comment nature of action to be taken against banks saying he cannot make it public. “We will not fail in executing our responsibility in this regard; however, action against banks will come to fore in the next two to three weeks,” he said.
Decision of cut in petrol price was a deliberate action and was done with the consultation of the Prime Minister, he said, and added they will not face any difficulty in dealing with International Monetary Fund (IMF) on this matter.
The minister said the government collected surplus revenue in first quarter of the continuing financial year and added: “I have been dealing with IMF since last 25 years. IMF knows if I took some measure, I will have some solid grounds. We will meet all commitments made to the IMF. Miftah Ismail is like my younger brother. He worked with me for four years. I haven’t any complaint against him.”
During the interview, Ishaq Dar said that Prime Minister Mian Muhammad Shehbaz Sharif talked to the IMF managing director on the matter of freezing agreed petrol levy like things in the IMF programme in view of recent floods and people plight, for three months, on the sidelines of United Nations General Assembly meeting.
He further said that MD IMF had said that she will talk to IMF Board on this matter; however, she has not officially informed Pakistan in this regard either the country is allowed to do so or not. In view of masses miseries, the government provided them relief of Rs 12 in oil prices whereas petroleum levy was not imposed, he said, and added they have collected more tax than it had to be collected under this head. He said if IMF talks to me on this matter I will clear them though it did not inquire about it as yet.
Ishaq Dar said that Pakistan has completed IMF programme for first time which belonged to the period of 2013 to 2016 and continued they will try to complete IMF programme for second time. “It seems people were not willing to be given relief in oil prices and if this is true then it is just a routine matter. Is there no betterment in markets? Is Pakistani rupee not gaining grounds? Is people’s confidence not restoring. Everything is going smooth. If all this is to be deteriorated it would be too easy. People will be ill at ease. In that case, I need not to remain in the ministry anymore,” he deplored.
“I have been working for the economic affairs of next 12 months and they are not facing any issue regarding payments of Rs 35 dollars of the country whereas media needs to portray positive image of the country,” he said. He added, “We fulfilled all agreements made with the IMF with no plan of revisiting IMF programme. We will complete IMF programme while remaining within agreed terms and conditions with it.” To a question on hike in gas prices, Dar said no decision has been done in connection with this.
Meanwhile, the Finance Ministry said that Dar has left for a visit to the United States. During his visit, the minister will attend the annual meetings of the International Monetary Fund (IMF) and the World Bank. He is also expected to hold direct talks with their officials.
Dar reaffirmed Pakistan’s commitment to complete the IMF programme, a day earlier, with all its conditions in an honourable manner and meet all repayment obligations to multilaterals, bond holders and Paris Club creditors. He said the ninth review with the IMF was scheduled for October 25 and ruled out any consideration for renegotiating the IMF agreement when it was in the last leg of its completion.
He also shared that Pakistan was seeking a rescheduling of bilateral debt, which now stands at around $27 billion. However, he ruled out rescheduling of international debt from wealthy western nations under Paris Club, multilaterals and international sovereign bonds.
The minister said there was no point in Paris Club rescheduling debt because the overall debt to these creditors was no more than 11 per cent of total foreign debt and debt relief over the year would be less than $1.2bn. Pakistan owes Paris Club countries a combined sum of around $10.7bn.
“When we are going to arrange $32-34bn for external payments, another $1.2bn is no big issue,” Dar said. The finance minister’s visit comes as Pakistan deals with the aftermath of the devastating floods which have affected nearly 33 million people and displaced 7.9m.
The World Bank has forecast Pakistan’s economic growth rate at 2pc this year and warned that 2.5 to 4pc of the population or about 10m people could fall below the poverty line owing to the combined impact of devastating floods and historic inflation.