Pakistan Finance Minister Ishaq Dar Archives - Lokmarg

Pakistan: Increase In Petrol And Diesel Price

By LokMarg 29th January 2023

Pakistan government has announced an increase in petrol and diesel prices by Pakistan rupees (PKR) 35 per litre. Pakistan Finance Minister Ishaq Dar made the announcement regarding the increase in fuel prices and it has come into effect from 11 am on January 29, Dawn reported.

Ishaq Dar made the announcement in a televised address on Sunday. He said that the price of kerosene oil and light diesel oil were increased by PKR 18 per litre. Pakistan Finance Ministry in a tweet said that the new price of petrol is PKR 249.80 per litre and diesel is PKR 262.80 per litre.
“We have decided to increase the price of petrol and diesel by Rs 35. The price of kerosene oil and light diesel oil has been increased by Rs18,” Dar said, adding that the new prices would come into effect at 11 am today.

Pakistan Finance Ministry tweeted, “Govt announced new prices of Petroleum Products with effect from 11.00 hrs, 29 Jan, 2023. High Speed Diesel-Rs 262.80 per litre MS Petrol –Rs 249.80 per litre Kerosene Oil -Rs 189.83 per litre Light Diesel Oil – Rs 187 per litre.”

Pakistan Finance Minister Ishaq Dar stressed that the government has decided to increase the minimum price of these four products according to the instruction given by Pakistan Prime Minister Shehbaz Sharif, according to Dawn.

Ishaq Dar said that the Pakistani rupee witnessed devaluation last week and they are witnessing an 11 per cent rise in the price of petroleum products in the international market. He said that the price of petrol was not increased since October.

“The Pakistani rupee saw devaluation last week […] and now we are seeing an 11 per cent increase in the prices of petroleum products in the international market,” Dawn quoted Ishaq Dar as saying.

“Despite international prices and rupee devaluation, on directions of Prime Minister Shehbaz Sharif, we have decided to increase the minimum price of these four products,” he added.

Ishaq Dar expressed hope that the announcement of new prices will dispel rumours about the shortage of petrol supplies, as per the news report. He said that there were speculations on social media that the price of petrol and diesel will be increased by Rs 50. According to Dawn, Ishaq Dar said, “Because of this, we have received reports of artificial shortages in the market.”

Ahead of Dar’s announcement, rumours of a massive increase in petrol prices led to long queues at petrol pumps in many parts of Pakistan. Reports posted on social media had said that the price of petrol and diesel were expected to increase between Rs 45 to Rs 80 on February 1.

“We saw a report on social media that oil prices will go up due to the surge in the dollar’s value and international petroleum rates,” Dawn quoted Hassan, who queued at a petrol pump.

Petrol was available at only 20 per cent of the petrol pumps in Gujranwala. The shortages of fuel were reported in Rahim Yar Khan, Bahawalpur, Sialkot and Faisalabad regions of Pakistan, Dawn cited Geo News report. (ANI)

Pakistan Govt, Oppn Try To Reach Consensus On New Army Chief

By LokMarg 20th November 2022

The coalition government in Pakistan has initiated dialogue with Imran Khan’s Pakistan Tehreek-e-Insaf (PTI), The Express Tribune newspaper reported citing sources.

The report said that this move follows the meeting between Pakistan Finance Minister Ishaq Dar and President Arif Alvi on Friday. Dar offered dialogue to resolve political issues, the sources said. Meanwhile, the Pakistan President, a member of PTI, told him his message would be conveyed to the party leadership which has shown a willingness to hold talks.

Dar held two meetings with the president in the last three days.

“The PTI wants the announcement of a date for the early general elections. If the government agrees, then the PTI is willing to rejoin parliament for a dialogue on the electoral framework,” the Tribune newspaper quoted the sources as saying.

According to the report, the purpose of the meeting between the finance minister and the president was to ensure that the process regarding the appointment of a new army chief would culminate smoothly.

Ahead of the deadline for installing a new army chief, the political standoff between the government of Prime Minister Shehbaz Sharif and Imran Khan has polarized the country and threatened to erupt in violence.

“The battlelines are sharply drawn now, making the situation untenable,” Maleeha Lodhi, a former Pakistani ambassador to the United States, wrote in an op-ed this week, as quoted by The Washington Post.

According to Lodhi, the former Pakistan Prime Minster is making matters worse by “hurling allegations” at the army but also privately seeking its support.

The looming fear is that the situation will “snowball into civil strife,” Lodhi was quoted as saying by The Washington Post. (ANI)

Pakistan A Sinking Ship, On Brink Of Default: Economist Steve Hanke

By LokMarg 16th October 2022

Warning that Pakistan is on the brink of a “debt default”, renowned economist Steve Hanke said that Pakistan Prime Minister Shehbaz Sharif is failing to save the “sinking ship.”

“Its sovereign bonds have lost more than 60 pc of their value this year. I’m not surprised. PM Sharif’s government is failing to save the sinking ship,” he wrote on his official Twitter handle on Friday.

Moody’s Investors Service has downgraded the long-term deposit ratings to Caa1 from B3 of five Pakistani banks. The rating agency has also downgraded the five banks’ long-term foreign currency Counterparty Risk Ratings (CRRs) to Caa1 from B3.

The banks, which have been downgraded include Allied Bank Limited (ABL), Habib Bank Ltd. (HBL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP), and United Bank Ltd. (UBL).

“As part of the same rating action, Moody’s lowered the Baseline Credit Assessments (BCAs) of ABL, MCB, and UBL to caa1 from b3, and as a result also downgraded their local-currency long-term CRRs to B3 from B2 and their long-term Counterparty Risk Assessments to B3(cr) from B2(cr). The BCAs of NBP and HBL were affirmed at caa1,” Moody’s said in a statement.

“The outlook on all banks’ deposit ratings remains negative,” it added. The downgrading of Pakistan banks reflects the government’s reduced capacity to support the banks, which has affected the banks whose ratings benefit from government support.

The reduced ratings also show the high credit linkages between the banks’ balance sheets and sovereign credit risk, which constrains the banks’ Baseline Credit Assessments at the level of the Caa1-rated government; and the lowering of Pakistan’s foreign currency ceiling to Caa1, which has affected the foreign currency CRRs of all rated banks.

Pakistan rejected Moody’s decision to downgrade its banks. The Shehbaz Sharif government said it was taken unilaterally and did not depict the true picture due to information gaps and contradictions.

Pakistan Finance Minister Ishaq Dar said he would give a “befitting” reply in a meeting with its officials if the agency did not reverse the downgrade.

“They (Moody’s officials) have to meet me. I told them if you don’t [reverse] this, I will give you a befitting response in our meeting next week,” he was quoted as saying by Dawn. (ANI)