Federal Minister for Finance and Revenue Ishaq Dar on Wednesday “categorically denied” rumors that the government was considering accessing foreign exchange held by commercial banks, clarifying that no such move was under consideration.
“National foreign exchange reserves always include foreign currency held by the [State Bank of Pakistan] SBP and commercial banks,” he wrote, referring to foreign exchange reserves based on this principle.
National foreign exchange reserves always include forex held with SBP and Commercial Banks. Recently I quoted the forex reserves figure based on this principle. Some vested elements who ruined this country’s economy in the past, gave it a deliberate twist and started a campaign
— Ishaq Dar (@MIshaqDar50) January 11, 2023
This statement came when the finance minister said that Pakistan’s foreign exchange reserves are not 4 billion but 10 billion dollars, as commercial banks also have 6 billion dollars of the country.
The comment sparked mass hysteria among collectors who felt there might be a repeat of 1999 when the government seized dollars from private banks.
The finance minister, without naming the Pakistan Tehreek-e-Insaf (PTI), accused the party of destroying the country’s economy in the past, adding that some “meaningful elements” deliberately twisted his comments and a The campaign began as if the government was considering foreign exchange access with commercial banks.
Dar said that foreign exchange held by commercial banks is “actually owned by the citizens”.
“Therefore, misunderstanding, misinterpretation and misrepresentation, propaganda should be ignored,” he said, reiterating that Pakistan is on track to improve its foreign exchange reserve position in the near future.
malafide, propaganda should be ignored. Pakistan is moving towards improvement in its forex reserves position in the near future, InnshaAllah!
— Ishaq Dar (@MIshaqDar50) January 11, 2023
Foreign exchange reserves held by the central bank fell to their lowest level since April 2014, at $5.577 billion as on December 30, 2022, from $5.822 billion as on December 23, 2022.
Pakistan will have to pay around $8.3 billion in external debt repayments during the next three months (January to March) of the current fiscal year.
The government is trying to pass the International Monetary Fund’s (IMF) ninth review to secure a $1.7 billion bailout package, but the two sides have not made substantial progress in recent days.
Dar recalls the situation in 1999.
Dar also addressed the issue in a press conference along with Prime Minister Shehbaz Sharif and other federal cabinet members. It was not allowed to keep. Dollar
In February 1999, when I was finance minister, we put in place a system whereby a significant amount of [dollars] were left with [private] banks. It was on June 30, 1999 that the reserves were divided into three columns – those held by the State Bank, commercial banks and total.
“Whenever Pakistan’s reserves are referenced anywhere in the world – survey or document – [aggregate data] is referenced and then a breakdown is given. I also gave the breakdown,” he said. added.
The minister said: “Some people had worsened the country’s situation to such an extent that it fell from the 24th largest economy to the 47th in 2016.”
“Even now, they cannot tolerate any good development. They gave such a twist [to my remarks],” he said, adding that when the federal cabinet was busy working for Pakistan under the guidance of Prime Minister Shehbaz, such People were spreading rumors that the government would borrow dollars from commercial banks.
“Nothing like this will happen. Everything is fine […] There is nothing to worry about,” he assured, urging the “rumormongers” to play a positive national role.
