By Staff Reporter
ISLAMABAD: Finance minister Ishaq Dar said the country is ready to buy fuel from Russia if the same rate that India is paying is applicable to Pakistan as well.
“We’re definitely considering it. If India is buying oil from Russia, we also have a right [to do so],” minister Dar told reporters on the sidelines of the Chartered Accountants Conference held in Islamabad on Wednesday.
Dar said the West would have no problem with Pakistan importing discounted fuelas the country is reeling under the devastating impact of the floods.
“We will not ink a deal on terms that are worse than India’s…I have told this to relevant quarters in Washington and so far, there has been no resistance against it.”
India went on bargain hunting for Russian crude as the prompted Moscow’s traditional buyers to shun those barrels and traders, stuck with shipments, started offering big discounts following Russia’s late February invasion of Ukraine.
India has emerged as Russia’s second biggest oil client after China and Russian oil accounts for 12 percent of the country’s oil purchase against less than 1 percent before the war.
The Group of Seven richest economies has been trying to enforce a price-capping mechanism on Russian oil exports by December 5, when European Union sanctions banning seaborne imports of Russian crude come into force.
Debt
Dar said Pakistan has also planned to seek debt rescheduling from China during the Prime Minister Shehbaz Sharif’s upcoming visit to the country.
Pakistan needs about $32-34 billion to pay external liabilities in the fiscal 2022-23 which include about $22bn multilateral debt and liabilities of around $12bn. He, however, again reiterated that the government would not approach Paris Club for the rescheduling of the debt or extension in bond maturity due in December.
He said Pakistan had already averted a default that loomed a few months ago. “Through you, I want to give a message to markets. There is no reason to get nervous. We are back in business, and there should be no doubt that Pakistan will never default,” Dar said
“There is no need to worry. There is no point spreading panic. God willing we have our projections, we will arrange everything. I don’t see any difficulty; there is nothing to worry about”.
Rupee
The minister said the exchange rate should fall below Rs200 against the dollar in accordance with the real effective exchange rate (REER). “The exchange rate will be brought down to its real value and soon he will meet with bankers to convey that the speculators will not be allowed to play tricks on the currency,” he added.
Asked about the rupee’s depreciation against the dollar again over the last couple of days, Dar said markets were sensitive to the size of the foreign exchange reserves but they were nervous for no reason. “It is the responsibility of the State Bank of Pakistan to guard the exchange rate and they are fulfilling their duty.”
FATF
Minister Dar said Pakistan complied with all relevant standards of the action plan of Financial Action Task Force (FATF) and it was hoped that Islamabad would graduate from the grey list. “I did not want to pre-empt the announcement of FATF but hoped for a positive outcome later this week.”
Copyright © 2021 Independent Pakistan | All rights reserved
