Pakistan’s finance minister says additional deposit from Saudi Arabia expected soon

Pakistan finance minister Ishaq Dar (center) gestures during a press briefing on the country's economic conditions in Islamabad on January 4, 2023. (Photo courtesy: Associated Press of Pakistan)
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Updated 04 January 2023
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Pakistan’s finance minister says additional deposit from Saudi Arabia expected soon

  • Ishaq Dar promises improved foreign exchange reserves by the end of this fiscal year
  • The finance minister informs China is in the process of rolling over $1.2 billion deposit

ISLAMABAD: Pakistan’s finance minister Ishaq Dar said on Wednesday the government was hoping to receive an additional financial deposit from Saudi Arabia in the coming days which would strengthen the position of its foreign currency reserves.

According to official figures, the forex reserves with Pakistan’s central bank plummeted to $5.8 billion in December which only provided an import cover of about a month to the country.

The dip in the foreign reserves arrived amid a major balance of payment crisis and currency depreciation, raising suspicion the that country could default on its international financial obligations.

Dar acknowledged in a news conference in Islamabad that Pakistan was facing a tough economic challenge, though he maintained the government was working on multiple fronts to deal with the situation and rescue to the country.

“We will deliver to you, until 30th of June, a much better forex position than you can think,” he promised the media. “We are working on that. There will be a combination of things, and we will be working on it day and night.”

Asked if he had received “concrete” financial commitments from China and Saudi Arabia, he said: “I am hopeful that Saudi Arabia will beef up its deposits in a matter of days, not weeks.”

The finance minister informed that China was also in the process of rolling over its deposit, though its system required Pakistan to return the money before it could be handed back to Islamabad.

He said the rollover amount, in case of China, was $1.2 billion.

“Once the facility is renewed and it is paid back, it will go straight into our reserves,” he continued. “What we get from Saudi Arabia will also beef up our reserves. Apart from all this, we are working on several other transactions.”

Dar said the government was focusing on privatization, working to improve the investment environment and prevent further economic bleeding.

He maintained the country’s prevailing political situation was making it difficult for the government to fix the financial situation.

“But these are things that you cannot do overnight,” he added. “The negative environment is weighing down the economy.”

The finance minister criticized the Pakistan Tehreek-e-Insaf (PTI) administration for ruining the national economy, saying the country’s present financial situation was not the result of what the new government had done in the last eight months.

He noted that former prime minister Imran Khan’s PTI government had even reneged on sovereign commitments given to international financial institutions before it was brought down in a no-trust vote last April, making the job of the new administration even more difficult.


Multi-party summit pushes for talks between Pakistan government, opposition to ease tensions

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Multi-party summit pushes for talks between Pakistan government, opposition to ease tensions

  • National Dialogue Committee group organizes summit attended by prominent lawyers, politicians and journalists in Islamabad
  • Participants urge government to lift alleged ban on political activities, end politically motivated cases and release women prisoners

ISLAMABAD: Participants of a meeting featuring prominent politicians, lawyers and civil society members on Wednesday urged the government to initiate talks with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, lift alleged bans on political activities and release jailed leaders of the PTI to foster reconciliation and pave the way for economic prosperity.

The summit was organized by the National Dialogue Committee (NDC), a political group formed last month by former PTI members Chaudhry Fawad Husain, ex-Sindh governor Imran Ismail and Mehmood Moulvi. The NDC has called for efforts to ease political tensions in the country and facilitate dialogue between the government and Khan’s party. 

The development takes place amid rising tensions between the PTI and Pakistan’s military and government. Khan, who remains in jail on a slew of charges he says are politically motivated, blames the military and the government for colluding to keep him away from power by rigging the 2024 general election and implicating him in false cases. Both deny his allegations. 

Since Khan was ousted in a parliamentary vote in April 2022, the PTI has complained of a widespread state crackdown, while Khan and his senior party colleagues have been embroiled in dozens of legal cases. Prime Minister Shehbaz Sharif last month reiterated his openness to talks with the PTI.

“The prime objective of the dialogue is that we want to bring the political temperatures down,” Ismail told Arab News after the conference concluded. 

“At the moment, the heat is so much that people— especially in politics— they do not want to sit across the table and discuss the pertaining issues of Pakistan which is blocking the way for investment.”

Former prime minister Shahid Khaqan Abbasi, who heads the Awaam Pakistan political party, attended the summit along with Jamaat-e-Islami senior leader Liaquat Baloch, Muttahida Quami Movement-Pakistan’s Waseem Akhtar and Haroon

Rasheed, president of the Supreme Court Bar Association. Journalists Asma Shirazi and Fahd Husain also attended the meeting. 

Members of the Pakistan Peoples Party, the ruling Pakistan Muslim League-Nawaz (PML-N) and the PTI did not attend the gathering. 

Muhammad Ali Saif, a former adviser to the Khyber Pakhtunkhwa chief minister, told participants of the meeting that Pakistan was currently in a “dysfunctional state” due to extreme political polarization.

“The tension between the PTI and the institutions, particularly the army, at the moment is the most fundamental, the most prominent and the most crucial issue,” Saif noted. 

‘CHANGED FACES’

The summit issued a joint communiqué after the meeting, proposing six specific confidence-building measures. These included lifting an alleged ban on political activities and the appointment of the leaders of opposition in Pakistan’s Senate and National Assembly. 

It also called for the immediate release of women political prisoners, such as Khan’s wife Bushra Bibi and PTI leader Yasmin Rashid, and the withdrawal of cases against supporters of political parties.

The communiqué also called for an end to media censorship and proposed that the government and opposition should “neither use the Pakistan Armed Forces for their politics nor engage in negative propaganda against them.”

Amir Khan, an overseas Pakistani businessperson, complained that frequent political changes in the country had undermined investors’ confidence.

“I came here with investment ideas, I came to know that faces have changed after a year,” Amir Khan said, referring to the frequent change in government personnel. 

The NDC plans to consult senior opposition leaders currently in prison to finalize a representative committee for talks once the government announces its own team.

“Let us create some environment. Let us bring some temperatures down and then we will do it,” Ismail said regarding a potential meeting with the jailed Khan. 

Khan’s party, on the other hand, has been calling for a “meaningful” political dialogue with the government. 

However, it has accused the government of denying PTI members meetings with Khan in the Rawalpindi prison where he remains incarcerated. 

“For dialogue to be meaningful, it is essential that these authorized representatives are allowed regular and unhindered access to Imran Khan so that any engagement accurately reflects his views and PTI’s collective position,” PTI leader Azhar Leghari told Arab News last week.