• Rupee stable after government’s decision to complete tenure: Miftah
• Claims to appoint SBP governor by next week
• Khwaja Asif calls for complete abolition of ‘Executive Allowance’
• Dastagir stresses on keeping petroleum products reserves at ‘record level’
• Musadiq says that imports of petroleum products decreased by 9 percent
• $5bn to trade with Turkey. expected to be promoted
ISLAMABAD: The country’s economic managers continued to assure on Thursday that Pakistan is not headed for default, the rupee has stabilized – even though it has fallen 0.83 per cent – and the country has had enough petrol for more than a month. .
Defense Minister Khawaja Asif in his press conference with Finance Minister Miftah Ismail called for a complete end to ‘Executive Allowance’ Recently top government employees and other similarly lavish lifestyles were given away at public expense, while the prime minister, in a cabinet meeting, expressed concern over the local currency’s record depreciation against the dollar.
Separately, Energy Minister Khurram Dastagir stressed that the country’s petroleum product reserves were at “record levels”.
Acknowledging that the policy measures issued by the government along with external factors will bring many of the middle class below the poverty line, Defense Minister Khawaja Asif on Thursday praised the recent ‘executive allowances’ given to top government employees and others. called for its complete elimination. Same lavish lifestyle at public expense.
Asif told reporters, “A permanent government, I mean the bureaucracy and others will have to jointly share the burden to ensure that the common man realizes that they are not paying the price alone but shared by the entire country.” have been done.”
He attributed the depreciation of the rupee – which fell to $227 from 204.85 on June 30 – mainly to an appreciation of the US currency against other currencies, adding that the dollar had touched a 20-year high.
He said that the size of the government of Pakistan should be reduced as much as possible in the given circumstances, but noted that it was too large because the private sector should do much that was still in government hands. He also stressed on the need for change in habit pattern and said that trading should be restricted to the time of day only.
The defense minister, who is part of a cabinet committee on importing coal from Afghanistan and engagement with friendly countries for financial assistance, said the government has already approved amendments to laws to facilitate government-to-government transactions. And the law will be fulfilled in a few. Day.
He said friends from the Middle East have shown interest in investing in listed companies, while their investment companies and sovereign funds are keen on many other companies that have been on the privatization list for decades.
Responding to a question, Mr. Asif said that a delegation has returned from Kabul and now arrangements will be made to increase import of coal for power plants.
Speaking on the occasion, Finance Minister Miftah Ismail said that inflows from friendly countries cannot happen so quickly and it takes time to materialize such transactions.
However, he claimed that the money market was now under control after the coalition partners announced the completion of the remaining constitutional term by June next year. He said that if there is any foreign transaction, he will announce it immediately.
He said the imports were brought under control due to hoarding of petroleum products, when the government was providing huge subsidies and as a result Pakistan had more than 30 days of petrol, almost two months for diesel and furnace oil.
On the other hand, consumption also declined due to higher prices. “We will spend our political capital to defend the country and have taken tough decisions and there is no regret in that. If we have to do it again, we will do it,” he said.
Mr Ismail said the economy is on the right track and all indicators were positive except for the exchange rate. He said that SBP has also taken steps to discourage imports. Responding to a question, he said the SBP governor would be appointed next week and its board of directors would be notified anytime.
‘Fuel stock at record level’
Meanwhile, Energy Minister Khurram Dastagir stressed on Thursday that the PML-N-led coalition government’s commitment to stabilizing the economy and preventing the effects of the “international energy crisis” from manifesting here was clear as petroleum product reserves” record level”. ,
Addressing a press conference in Islamabad with Minister of State for Petroleum Musadiq Malik, Dastagir drew comparisons between Pakistan and “another country in the region facing economic difficulties”, apparently referring to Sri Lanka, which has been in the business for months. is facing financial crisis. And the president had to step down amid widespread protests.
Reading: Lessons from Lanka’s recession
He said that the biggest sign of the economic turmoil in the country is that there has been a shortage of petroleum products in the country. “People had to stand in queues for four days to get petrol. But here we have diesel stock which will last for two months and petrol stock for 34 days.
‘Significant reduction in import bill’
Musadiq Malik told reporters that imports of petroleum products are witnessing a gradual decline as the consumption of petrol in the country declined by 9 per cent to 704,000 tonnes in June from around 778,000 tonnes in the same month a year ago. Similarly, sales of diesel oil used in heavy vehicles and agricultural machinery declined by 8 per cent to 9 per cent.
He said his ministry was managing the cases on a daily basis and was not allowing any unnecessary imports. He also emphasized that there was no risk of shortage of petroleum products amid “record-high” petrol and diesel reserves.
cabinet meeting
The cabinet meeting chaired by the Prime Minister on Thursday claimed that it would bring down the unbridled prices of petroleum products in the country by next month.
Giving details of the meeting, Finance Minister Mifta Ismail said, “All necessary steps are being taken to reduce the dollar rate and by next month the rupee will stabilize against the dollar.”
Prime Minister – who has been living in Lahore for a few days, apparently to closely monitor Punjab chief minister election Scheduled to be held today (Friday) – chaired the meeting via a video link.
According to the Prime Minister’s Office, Mr Sharif expressed concern over the record depreciation of the local currency against the dollar.
The cabinet also took some other important decisions, including approval of a multi-modal air-road corridor policy for trade with neighboring Afghanistan.
It also approved a “trade in goods” agreement with Turkey, which would ease 261 tariff lines for Pakistan, apart from giving zero rating on 123 items. Reciprocally Pakistan will grant exemptions to Turkey on 130 tariff lines and sectors such as agriculture, chemical, leather, plastic, rubber, engineering and steel industries. The agreement is expected to increase bilateral trade to $5 billion.
Published in Dawn, July 22, 2022