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.