Tarin unveils govt approach to $3bn Saudi lending

ISLAMABAD: Saudi Arabia has conveyed to Pakistan that it ‘can’ take back its loan of $ 3 billion given to Pakistan if the latter defaults — and four percent interest on this loan is a ‘no big deal’ keeping in view the fact that interest rates are higher worldwide, Finance Minister Shaukat Tarin disclosed in the Senate on Friday.

“We will not default — but if we default — then we have to return this loan to Saudi Arabia—we will ask Saudi Arabia, if needed, to extend the time period for the return of the loan,” he said on the floor of the house.

“Conditions are set on the provision of loans—but it’s not necessary that these conditions have to be implemented—Saudi Arabia conveyed to us that it can get its loan back if we defaulted,” he told the house.

He said Pakistan has requested Saudi Arabia to provide oil on deferred payment.

Petroleum development levy (PDL) and sales tax have been reduced on fuel, and government is trying its best to reduce burden on the common man as much as possible, Tarin said.

“Petroleum prices increased to 100 per cent in the international market whereas we increased them by only 40 per cent. But if you say that import of oil should be stopped, this is just not possible,” the minister said, adding that coal needs to be imported to keep those power plants running that operate on imported coal. Coal is also being extracted from Thar to run some power plants, he added.

SBP has received $3-billion deposit from Saudi Arabia, says Shaukat Tarin

The finance minister minced no words to allege that Pakistan was being ‘victimised’ on the forum of Financial Action Task Force (FATF).

He, however, did not name any state in this context.

“We were given 28 conditions to be out of the FATF grey list. Of these conditions, we fulfilled 27 and also partially fulfilled the last one. There’s just a transactional issue related to this last condition that would also be addressed. But—despite doing all that—we are still in the grey list—had any other country met 27 of the 28 conditions, it would have long been removed from the FATF grey list. But we are being pressurized and victimised deliberately,” he said.

Taking a jibe at some of the ‘friendly countries,’ again, without naming anyone, Tarin said, “The countries that have taken a stand against us at FATF are the ones that happen to be our friends — our opponents are opposing us out of political agenda —— we were in the white list during the term of previous government but landed in the grey list due to the actions of the former government — when caretaker government was at the helm,” Tarin said.

The minister reiterated that Pakistan would be out of the grey list in the upcoming FATF session.

The minister admitted that the import bill increased due to import of the sugar and wheat by federal government, but, he said, the import bill was reduced by $ 1.5 billion in January alone.

Tarin claimed Pakistan’s exports have increased by 25 to 28 per cent and rupee in not undervalued currently. “It’s on 174 (per dollar). There’s a minor difference of a rupee or two—but that’s not an issue,” he said.

The minister also admitted that the government’s step to increase duty of completely built units (CBUs) resulted in the rise in automobiles prices.

The government procured Covid vaccine worth $ 2 billion, he added.

Meanwhile, in an embarrassing scenario for Chairman Senate Sadiq Sanjrani and federal government, treasury senators from Balochistan Awami Party (BAP) staged a walkout from the house for not being given ‘sufficient’ representation in the federal cabinet. “You are talking about all that (FATF and grey list)—it’s the federal government that has put BAP on the grey list. We will not attend Senate sessions anymore if not given representation in the federal cabinet,” said BAP’s Prince Ahmed Umer Ahmedzai.

It merits a mention here that Sanjrani, the Senate chief, also belongs to BAP and is regarded as one of its central figures even though he was elected to Senate as an independent candidate in March 2018. Federal Defence Production Minister and Member National Assembly (MNA) Zubaida Jalal also belongs to BAP.

After BAP members walked out of Senate, a visibly embarrassed chairman Senate directed Railways Minister Azam Swati and Science and Technology Minister Shibli Faraz to bring the BAP senators back in the house, which they did.

“We walked out not for the ministry but for the rights of Balochistan—if the government officials don’t change their attitude—they will get an answer soon,” warned another BAP Senator Manzoor Kakar after returning to the house.

Sherry Rehman from Pakistan People’s Party (PPP) invited BAP to join opposition benches. “We will address your concerns,” she said.

Shibli Faraz said BAP is an ally of the treasury benches and it will remain so. “Their demands are valid and we will try to address them. Prime Minister Imran Khan will listen to them and decide on merit,” he said.

BAP has 12 seats in Senate and five seats in National Assembly.

The house was adjourned till Monday.

Copyright Business Recorder, 2022