Ishaq Dar rebuffs ‘baseless rumours’ about default, fuel shortage

ISLAMABAD: Finance Minister Ishaq Dar has once again ruled out the possibility of default and shortage of fuel reserves, terming the speculations ‘baseless rumours being spread on political goals’, ARY News reported on Saturday.

Addressing a press conference via video link, the finance minister noted that he was aware of rumours that the country would be unable to pay $1 billion in December against the maturity of the five-year Sukuk, or Islamic bonds.

Ishaq Dar assured that Pakistan would not default and would be able to meet its upcoming $1 billion dollar bond payments in December. “We have never defaulted before. The bond will be paid and even arrangements have been made in principal for upcoming payments in the next year,” he added.

“Such baseless rumours for political gains are irresponsible,” the finance minister maintained, adding that such statements against Pakistan’s economy were against the country’s interest.

The minister further said that another rumour was spread about Pakistan’s Credit Default Swap and that the risk for repayment had increased to 75 percent. “Our international bonds have very small transactions and technically there should be no impact on them,” he added.

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“If it maintains this rate, the current account deficit stood at $5 billion to $6 billion, down from the projected level of $12 billion,” he said, adding that the current account was something they were keeping a very keen eye on and were managing various aspects of it.

Talking about the rumours regarding shortage of fuel reserves, Dar said Pakistan has enough reserves of petrol and diesel and such speculations are baseless.

Speaking about the current account deficit, Dar said it was under strict watch and being monitored and managed for the national interest. “For September, the current account deficit remained at around $316 million. For October, it was less than $400 million.”

“If this continues at the same pace then it will be around $5-6 billion for the year while the projected was $12 billion,” the finance minister said. He concluded by urging the people to think for Pakistan beyond their political affiliations and avoid speculations.

 

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