Crisis averted after two back-to-back increases in petrol prices
Finance Minister Miftah Ismail said on Monday that there was no financial emergency in Pakistan, especially after the two back-to-back increase in the price of petroleum.
The federal minister said the prime minister at “some point” will announce austerity measures, as he ruled out any kind of financial emergency in light of the poor economic situation.
“But there is not going to be any declaration of financial emergency. Nor is there any financial emergency. After two increases in petrol prices, we are out of the financial crisis,” the minister said while referring to the potential austerity measures.Miftah also rubbished rumours regarding the closure of Roshan Digital Accounts, saying the government has no plans to “freeze foreign currency accounts or Roshan Digital Accounts or take over people’s private lockers”.
“We have never even contemplated these steps. Nor will we ever do it. Speculation on social media about this is wrong and coming from biased quarters,” the finance minister tweeted.
Pakistan is seeking financial assistance from Saudi Arabia, Qatar, and the United Arab Emirates to stabilise the economy and is hopeful for a positive result, revealed Finance Minister Miftah Ismail.
Speaking to a news channel, the minister announced that Pakistan had reached out to Saudi Arabia, Qatar and UAE to help the cash-strapped country.
“Saudi Arabia, hopefully, will reload [deposit money in Pakistan’s central bank] before December,” the minister said. “Also, the Kingdom may extend Pakistan’s limit to buy oil on credit.”
The government has also sought support from Qatar, the minister said. “We are talking to Qatar to let us buy Liquefied Natural Gas on loan. We are also talking to the UAE [for financial assistance],” he added.
Separately, Ismail said that $2.4 billion loan will be received from China in two or three days, as all the formalities related to the loan have been completed after a recent visit by Foreign Minister Bilawal Bhutto Zardari.
Pakistan is also finalising a bailout package with the International Monetary Fund, prior to which the government hiked up the price of petrol and removed subsidies put in place by the previous government, as demanded by the international lending body.
