ISLAMABAD: Pakistan’s former finance minister Ishaq Dar said on Saturday the government should renegotiate a $6 billion bailout package provided by the International Monetary Fund (IMF) to the country, saying it was putting extreme financial burden on the people of Pakistan.
Dar is a close aide of former prime minister Nawaz Sharif who is in self-exile in London. Sharif is the founding leader of the Pakistan Muslim League-Nawaz (PML-N) party which is currently leading the coalition government in the country.
The former finance minister told a local news channel that rising inflation and depreciation of Pakistan’s national currency were at the heart of the country’s prevailing economic problems since they were making it difficult for the government to address the financial problems of people.
Pakistan’s new finance minister Miftah Ismail recently met IMF officials in Washington and requested them to increase the size and duration of the $6 billion loan program. He also agreed to reverse oil and gas subsidies for the resumption of the IMF program which was stalled after the country’s previous administration announced a relief package of about $1.7 billion in February.
Dar, however, said the IMF loan in its current form had become detrimental to the country’s economic interests.
“We should have the spine to talk to them [the IMF] in national spirit,” he told Geo News, adding: “This program was onerous. It was very badly negotiated. Who are they [the IMF] to tell us where our currency should be? Who are they to tell us where our interest rate should be?”
Pakistan is currently facing significant economic challenges, as its fiscal deficit is expected to rise and its foreign currency reserves are running low.
The country’s former finance minister said the opposition had decided to bring a no-confidence motion against Imran Khan to fix the economic situation, though he warned it would not happen overnight.
“There is very limited time since [the parties in the new government] are committed to moving toward fresh elections after taking necessary steps,” he maintained. “I don’t think that any party – whether it’s the PML-N or its allies – has come to complete one and a half years in power. They are just there to do essential things such as electoral reforms etc. in national interest before moving toward elections.”
Asked why federal ministers from his own political party were saying the government would finish its tenure, he said the election commission had already said it could not hold the polls before October.
However, he emphasized it was everyone’s preference to hold new elections since all the political parties in the new administrative setup had been saying themselves that the last general elections were “stolen.”
Dar maintained the federal ministers who said the government was going to finish its tenure were presenting their own opinion, not the party policy.
In response to a question of what Nawaz Sharif wanted under the present circumstances, he said the founding leader of PML-N also hoped to move toward fresh elections as soon as possible.
Pakistan should renegotiate IMF bailout package, says influential leader of ruling PML-N party
https://arab.news/2a7hh
Pakistan should renegotiate IMF bailout package, says influential leader of ruling PML-N party
- Ishaq Dar, a close aide of ex-PM Nawaz Sharif, says everyone wants fresh elections in country
- Government recently urged the IMF to increase the size and duration of its $6 billion loan program
Pakistan raises fuel prices by Rs55 per liter as Middle East conflict drives oil surge
- Government says adequate fuel stocks in place despite global energy shock
- Oil prices jump from about $78 to over $106 per barrel amid regional conflict
ISLAMABAD: Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Global oil markets have been rattled since coordinated strikes by the United States and Israel against Iran began last week, triggering retaliatory attacks across the region, raising fears of disruption to key energy shipping routes and pushing petroleum prices sharply upward.
The price adjustment in Pakistan was announced after a joint press conference by Finance Minister Muhammad Aurangzeb, Deputy Prime Minister and Foreign Minister Ishaq Dar and Petroleum Minister Ali Pervaiz Malik, who said the government was monitoring international energy markets and domestic supply conditions amid the crisis.
“So, the decision we have made by changing the levy a little bit is that we are going ahead with increasing the price of both fuels, petrol and diesel, by Rs55 ($0.20),” Malik told reporters.
“And as soon as this matter settles, we will revise the prices downward with the same speed and take steps on how to increase people’s income and purchasing power.”
He said Pakistan entered the crisis with “comfortable energy reserves” due to earlier planning but rising global prices had forced the government to adjust domestic fuel rates to maintain supply continuity.
He said international petrol prices had climbed from roughly $78 per barrel on March 1 to around $106.8 per barrel, while diesel prices had risen to about $150 per barrel.
Malik added that the government had taken steps to minimize the burden on consumers, noting diesel plays a critical role in agriculture, transportation and public mobility.
Malik also warned that authorities would take strict action against anyone attempting to hoard fuel or manipulate supply for profiteering.
The minister said Pakistan was working with international partners to secure additional energy supplies, including arrangements with Saudi Aramco and the use of Pakistan National Shipping Corporation vessels to transport crude oil imports.
Finance Minister Aurangzeb said a high-level government committee formed by Prime Minister Shehbaz Sharif had been meeting daily to review developments in global petroleum markets and their potential impact on Pakistan’s economy.
“Pakistan currently maintains adequate energy stocks and macroeconomic stability,” Aurangzeb said, adding that the government’s response was based on preparedness rather than panic.
He said the committee, which includes senior ministers, the governor of the State Bank of Pakistan and other officials, was assessing short-, medium- and long-term implications of the crisis for inflation, foreign exchange reserves and broader economic indicators.
Deputy PM Dar said the regional conflict had significantly disrupted global energy markets, with international petroleum prices rising by as much as 50–70 percent in recent days.
The deputy prime minister added that Pakistan was also engaged in diplomatic efforts aimed at de-escalating tensions and restoring stability in the region.
Petroleum prices will now be reviewed more frequently, potentially on a weekly basis, and any reduction in global oil prices would be passed on to consumers.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
