Dar reaffirms to honor all commitments, rejects speculation to approach Paris Club

ISLAMABAD (APP): Minister for Finance and Revenue Senator Muhammad Ishaq Dar here on Sunday reaffirmed the government’s resolve to fully honor all the commitments made with International Monetary Funds (IMF) and other creditors, besides addressing the issues faced by the local business community.

Addressing a press conference, the minister also categorically dismissed the speculation with respect to approach Paris Club for the rescheduling of loans of the multi-lateral lenders and donor agencies, besides extending the date of maturity of Pakistani bound in international market.

The bond would be matured by December this year and all the payments would be endured with in time to maintain and protect national sovereignty, he added.

He said that Pakistan is an independent and sovereign state and current government was fully determined to protect and maintain its national sovereignty and integrity, adding that all the commitments made with creditors would be fulfilled in letter and spirit.

The minister said that prior to current program with the International Monetary Fund (IMF), the government of Pakistan Muslim league-N had completed a program with the fund in 2016, adding that this time too, the government protected all the agreements done with the monetary fund.

The 9th review with IMF is scheduled on October 25, he said adding that all the previous commitments would be completed to successfully complete the program second time, besides maintaining the reputation of the country in international market.

The minister said that Prime Minister had received complaints from the business community in which they said that their shipments were stopped arriving, LCs opened and there was not any mechanism for the payment due to unavailability of credit.

He said that this situation emerged due to bad governance and poor management of last regime, adding that foreign exchange reserves were reached to the lowest level leaving very narrow space for opening the LCs, adding that steps are being taken to address the grievances of local business community.

He said that he had held series of meeting and discussion with Governor State Bank of Pakistan (SBP) and asked him to compile a comprehensive value wise data in this regard before leaving for US to attend annual general meeting to facilitate the local business community.

The minister said that the SBP had compiled the data and as a first step it was decided that all the pending payments worth upto $50,000 would be cleared, adding that about 7,952 payments would be made, which would help to clear about about 52 percent pending LCs.

On the Special directives of Prime Minister, longstanding issue of export-oriented industry of the country was also addressed and now 05 export oriented industries would be provided Rs19.99 per unit, adding that it would help to flourish the exports from the country and attract foreign exchange for the country.

Regarding the recent Moody’s Credit rating, the minister said that they had complied report in haste, adding that the ministry had submitted its response on its press release.

Senator Ishaq Dar said that Pakistan had faced even the worse economic challenges during the time of nuclear test in 1998 and it came out from the crisis, adding that all the challenges faced now would also be over come.