Tag: Finance Minister

  • Dar stresses on providing maximum relief to the underprivileged sector of society

    Dar stresses on providing maximum relief to the underprivileged sector of society

    Minister for Finance and Revenue Ishaq Dar urged the Ministry of Industries and Production on Saturday to develop a comprehensive strategy that would prioritise providing maximum relief to the least endowed sector.

    Dar, who was chairing a meeting to examine the prime minister’s relief package through Utility Stores Corporation (USC), said the current government was aware of the difficulties confronting the underprivileged section of society, which required maximal relief support.

    He went on to say that the government’s primary goal was to help the poor and that it was doing everything it could to help them.

    The meeting was attended by Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, SAPM for Finance Tariq Bajwa, SAPM for Revenue Tariq Pasha, Secretary Finance, Secretary Industries and Production, MD USC, and senior authorities.

    The chair was informed about the PM’s relief package and subsidy on five vital products (pulses, wheat, sugar, rice, and ghee) granted by the USC to help the public.

    It was revealed that subsidised flour, sugar, rice, ghee, and pulses were being distributed to the populace across the country. The meeting also considered the financial ramifications of the subsidies.

    The finance minister also met with Federal Communications Minister Asad Mehmood here at the Finance Division.

    Financial SAPM The meeting was attended by Tariq Bajwa, SAPM on Revenue Tariq Pasha, Secretary Finance, Secretary Communications, Chairman NHA, IG Motorway, and top officers.

    Asad Mehmood informed the finance minister of the financial status of various Communication Ministry agencies, including Motorway Police, Pakistan Post, and NHA.

    He also emphasised the organisations’ contributions to the country’s success and development.

    While acknowledging the contribution of the Ministry of Communication and its affiliated organisations to the country’s economic stability and progress, the finance minister stated that the current government was aware that a well-integrated communication network was critical for the country’s socioeconomic development and financial stability.

    According to APP, Dar also informed the communications minister that he would handle and resolve the concerns of the Communication Ministry’s organisations in order for them to perform better and contribute to Pakistan’s prosperity and development.

  • Pakistani rupee drops by 0.35% to close at Rs221.43 versus dollar

    Pakistani rupee drops by 0.35% to close at Rs221.43 versus dollar

    As investors await the US Federal Reserve’s decision on the policy rate, the Pakistani rupee (PKR) depreciated by 0.35 per cent against the greenback on Wednesday.

    According to the State Bank of Pakistan (SBP), the local unit appreciated by Rs0.78 and ended the day at Rs221.43.

    The Pakistani rupee enjoyed gains against the US dollar on Tuesday, and it ended the day at Rs220.65 after rising by Rs0.24 (or 0.11 per cent) in the interbank market.

    Gains were recorded when market confidence improved as a result of discussions held by Finance Minister Ishaq Dar with senior bank and exchange company executives.

    However, in a significant development, according to the most recent data released by the Pakistan Bureau of Statistics (PBS) on Tuesday, consumer price index (CPI)-based inflation increased to 26.6 per cent on an annual basis in October 2022 as opposed to an increase of 23.2 per cent in the previous month and 9.2 per cent in October 2021.

    Globally, the US dollar slipped on Wednesday as investors awaited the US Federal Reserve’s policy decision amid speculation it might indicate a slowdown in future rate hikes. The central bank will soon release its policy statement with investors widely expecting a 75 basis points (bps) rate hike, the fourth such increase in a row.

    The dollar index – which gauges the greenback against a basket of six counterparts that includes the yen, euro and sterling – eased 0.2 per cent to 111.28, but was not far below Tuesday’s high of 111.78, the strongest level since October 25. The index has fluctuated widely around the 112 level since its retreat from a two-decade high of 114.78 at the end of September.

    Oil prices, a crucial gauge of currency parity, increased on Wednesday after data from the sector revealed a surprising decline in US oil supplies, indicating that demand is still strong despite sharp interest rate increases that are slowing down global development.

  • Petroleum prices to remain unchanged for next fortnight

    Petroleum prices to remain unchanged for next fortnight

    For the upcoming two weeks, the government has decided to keep petroleum product prices unchanged.

    Ishaq Dar, the finance minister, made the announcement during a press conference.

    This means that the price of petrol will remain unchanged at Rs224.80 per liter, high-speed diesel (HSD) at Rs235.30, light diesel oil (LDO) Rs186.50, while kerosene will be sold at Rs191.83.

    It is important to note that the administration did not change the prices during the most recent fortnightly review. The government refused to lower the price of gasoline for the general population by raising the petroleum development levy (PDL) by Rs14.84.

    Dar also stated that the government will clear the outstanding letters of credit (LCs) after speaking with the State Bank of Pakistan (SBP), with the cap increasing to $100,000 from the existing $50,000 as of November 1.

    Despite the relief, locals are forced to buy petrol for their daily commute at outrageously high costs. Contrarily, it is anticipated that CNG stations in Punjab and Sindh may be closed for longer than four months, which has made the issues of the populace much worse.

  • Total volume of debt on Pakistan has risen to Rs49.2 trillion

    Total volume of debt on Pakistan has risen to Rs49.2 trillion

    The National Assembly was informed on Monday that Pakistan now owes a total of Rs49,200 billion.

    According to Finance Minister Ishaq Dar, as of June 30, 2022, the country had a domestic debt of Rs31,000 billion and an external debt of Rs18,160 billion.

    Indicators for the sustainability of the nation’s external debt further declined in the previous fiscal year, according to a report from the finance ministry, as a result of the government’s increased reliance on short-term loans from abroad and the risks associated with refinancing and rupee depreciation.

    For the fiscal year 2021–2022, the public debt indicators linked to debt maturity, currency risks, refinancing risks, and interest rate risks had gotten worse, according to the Annual Debt Review and Public Debt Bulletin.

    The Public Debt Management Office and the federal government did a dismal job, within a year, the overall public debt increased by Rs9.3 trillion, from Rs39.9 trillion to Rs49.2 trillion. according to Express Tribune.

    According to the finance ministry, currency depreciation caused an increase of Rs3.8 trillion as the exchange rate dropped from Rs157.3 to a dollar in June 2021 to Rs204.4 in June 2022. Budget finance requirements were the cause of the remaining increase.

    The proportion of external debt in the total public debt climbed from 34 per cent in 2020–21 to 37 per cent in the most recent fiscal year. It was approaching the 40 per cent upper limit.

  • Pakistan intends to reschedule its $27 billion bilateral debt: Finance Minister

    Pakistan intends to reschedule its $27 billion bilateral debt: Finance Minister

    Finance Minister Ishaq Dar said in a statement to Reuters that he would attempt to reschedule around $27 billion in non-Paris Club debt, most of which is owing to China, but he would not seek haircuts as part of any restructuring.

    Dar ruled out the likelihood of Pakistan’s debt default, an extension of the maturity date for bonds that are due in December, and a revision of the existing International Monetary Fund (IMF) programme in an interview.

    The seasoned finance minister claimed that multilateral development banks and foreign donors have been “very flexible” in finding ways to meet Pakistan’s anticipated $32 billion in external financing demands following disastrous floods.

    He said that some of this might come from repurposing money from development loans that had already been granted but were paying out more slowly.

    Just over two weeks after entering office, Dar, who is attending the IMF and World Bank annual meetings, stated that Pakistan would seek restructuring on similar terms for all bilateral creditors.

    When asked if he felt it would be difficult to convince China, the creditor of nearly $23 billion of the debt, to participate, he declined to respond.

    He responded when asked if Pakistan would try to lower the debt’s principal “rescheduling is fine, but we are not seeking a haircut … That’s not fair”.

  • Ishaq Dar leaves for US to attend annual IMF, World Bank meetings

    Ishaq Dar leaves for US to attend annual IMF, World Bank meetings

    The Federal Minister of Finance and Revenue Ishaq Dar would ask the World Bank (WB) for an early release of cash and the International Monetary Fund (IMF) to relax the program’s rules.

    Alongside the annual meeting, Ishaq Dar will meet representatives from the IMF and WB. He will also meet representatives of the global rating agency Moody’s and the IMF to examine the state of the economy and the loan programme.

    According to Dawn, the discussions will also include participation from the Finance Secretary and the Governor of the State Bank of Pakistan (SBP).

    At a press conference on Saturday, the minister firmly denied rumours that he will visit the Paris Club to reschedule loans from multilateral lenders and donor organisations.

    The minister added that they had complied with the report of the most recent Moody’s credit rating in a hurry and that the ministry had provided its response in a press release.

    The Prime Minister met with representatives from the World Bank and the International Monetary Fund last month on the UN sidelines to review the current flood situation and request relief in the programme terms, which they pledged to take favourably.

  • ‘Nothing to worry about’: Dar dismisses concerns raised by Moody’s downgrading Pakistan

    ‘Nothing to worry about’: Dar dismisses concerns raised by Moody’s downgrading Pakistan

    After Moody’s Investors Service downgraded Pakistan’s sovereign credit rating on Friday, Finance Minister Ishaq Dar dismissed worries, stating there is ‘nothing to worry about’.

    “There is nothing to be worried about, I spoke with Moody’s yesterday and told them that they shouldn’t have done this. They should have consulted with us,” said Dar while talking to the media.

    The announcement follows Moody’s Investors Service’s (Moody’s) Thursday night downgrading the government of Pakistan’s senior unsecured debt rating from B3 to Caa1 for both local and foreign currency issuers.

    According to Express Tribune, the senior unsecured MTN program’s rating was similarly reduced by Moody’s, moving from (P) B3 to (P) Caa1. The future remains bleak.

    In the wake of the terrible floods that have struck the nation since June 2022, the rating agency said that the decision to lower the ratings to Caa1 was motivated by greater government liquidity, external vulnerability risks, and higher debt sustainability risks.

    The floods have significantly increased the need for social spending, compounded Pakistan’s problems with liquidity and external credit, and negatively impacted government revenue.

    According to the rating agency, Pakistan’s long-standing credit weakness of extremely weak debt affordability would continue for the foreseeable future.

    However, the Ministry of Finance vehemently contested Moody’s rating decision in its reaction. “The rating action by Moody’s is strongly contested by the Ministry of Finance as the rating action by Moody’s was carried out unilaterally without prior consultations and meetings with our teams from the Ministry of Finance and State Bank of Pakistan,” a statement issued by the ministry said.

    “Following Moody’s intimation of the rating action, the ministry held two meetings with the agency’s team over the past 24 hours, sharing data and information which clearly show a picture contradicting Moody’s rating action.

    “After a regular stock take of the economic and fiscal conditions, the Ministry of Finance informed that government policies over the last few months have helped in fiscal consolidation,” the ministry added.

    “The government had adequate liquidity and financing arrangements to meet its external liabilities.”

    Dar said that Fitch Ratings recently downgraded the UK from stable to negative. “The ratings from these agencies is essential for issuing bonds and Sukuks in the international market,” he said. He claimed that he informed Moody’s that if the organisation did not change its mind, he would provide a “befitting” response at his meeting with its representatives set for next week.

    “They (Moody’s officials) have to meet me. I told them if you don’t [reverse] this, I will give you a befitting response in our meeting next week,” he said.

  • Pakistan seeks rollover of SAFE deposits worth $2 billion from China in March 2023

    Pakistan seeks rollover of SAFE deposits worth $2 billion from China in March 2023

    Pakistan seeks the rollover of $2 billion in State Administration of Foreign Exchange (SAFE) China deposits in March 2023. Federal Minister for Finance and Revenue Ishaq Dar, received a visit from Nong Rong, the People’s Republic of China’s ambassador, at the Finance Division.

    According to APP, Dar emphasised the long-standing friendship and kinship ties between Pakistan and China.

    The finance minister also thanked the Chinese leadership for their assistance in refinancing a syndicate facility worth RMB 15 billion ($2.24 billion) for Pakistan. He also asked the ambassador to help facilitate the rollover of $2 billion in SAFE China deposits in March 2023.

    Dar informed the ambassador of the costs to the overall economy as well as the harm done to Pakistan’s infrastructure, agriculture, lives, and property by the severe floods. He expressed gratitude to the Chinese government for providing the government and people of Pakistan with unwavering support during this difficult time.

    In reference to the CPEC, the finance minister stated that the economic corridor will be crucial in advancing Pakistan’s economy and fortifying bilateral ties between the two nations. He further pledged his unwavering support for the aid in realising the success of CPEC.

    The minister received Nong Rong’s congratulations on taking up his new duties. The envoy underlined China’s continuous support for Pakistan and emphasised how China is a rock for the Pakistani people in this time of need.

    “Since the devastating floods occurred in Pakistan, among all countries, China has announced over 644 million RMB (around 90 million dollars), the biggest amount of assistance to Pakistan,” said Nong Rong, in a tweet.

  • Petrol price reduced by Rs12.63 to Rs224.80 per litre

    Petrol price reduced by Rs12.63 to Rs224.80 per litre

    Finance Minister Ishaq Dar has announced a significant reduction in petrol prices on Friday, cutting the cost by Rs12.63 per litre to Rs224.80 per litre.

    A reduction of Rs12.13 has also been made to the cost of high-speed diesel, bringing the new price down to Rs235.30 per litre. After a reduction of Rs10.19 per litre, the cost of light diesel oil will be Rs191.83, according to Geo News.

    The new petrol price will go into effect after 12 AM.

    According to a statement from the Finance Division, the government decided to lower the price of petroleum goods in response to a drop in the price of these products on the global market and to help consumers who had been affected severely by inflation.

  • Court issues notice to NAB on Dar’s plea to cancel warrants

    Court issues notice to NAB on Dar’s plea to cancel warrants

    An accountability court has served a notice to National Accountability Bureau (NAB) today (Wednesday) after newly-appointed Finance Minister Ishaq Dar surrendered himself before the court and submitted a petition pleading for the cancellation of his arrest warrants.

    The court then issued a notice to the NAB and ordered Dar to appear before the court on October 7.

    “We will hear the application for cancellation of warrants along with assets’ reference,” the judge remarked.

    In 2017, Dar was a declared a proclaimed offender in a NAB reference due to his continued absence from the proceedings.

    NAB accused Dar of possessing assets disproportionate to his known sources of income.

    The case was filed by NAB in light of the Supreme Court’s July 28 verdict in the Panama Papers case.

    The same year, Dar flew to United Kingdom due to seek medical treatment. He stayed there for almost five years until his return to Pakistan on Monday.