Finance Minister Miftah Ismail reiterated on Saturday that the dollar’s value was affected by market conditions, neither he nor the State Bank of Pakistan had “directly intervened” to lower it.
Speaking to the Karachi Chamber of Commerce and Industry, he expressed his disagreement with a member’s claim that he was somehow responsible for the dollar’s depreciation. “Neither the State Bank nor I have directly intervened (to bring the dollar down). It falls on supply-demand,†he stated.
Since July 29, the rupee has increased by Rs16.26 versus the dollar in the interbank market. Ismail reiterated the need for the government’s decision to limit imports for the following three months.
He further said “We have imposed a ban on CPU cars, mobile phones and home appliances which we will not remove till September. The restrictions on [import of items with H S Codes starting with] 84 and 85 are with reason.â€
The minister did add that imports would not be halted until officials identified the materials used by exporters to make goods. He provided assurance that the government had never ceased making payments on any opened letters of credit and would not do so in the future either.
The minister pointed out that the nation’s imports totalled $80 billion last year, while its exports came in at only $31 billion. According to him, the country’s current account deficit was $17.5 billion, while the trade imbalance after deducting remittances was $18 billion.
He said he felt ashamed when he had to meet the ministers of other countries and ask them for loans.
“We were giving subsidies worth $500bn on petrol and had imports worth $7.5bn and were not exporting at all. We have to go to Saudi Arabia and UAE and ask them to deal with the IMF (International Monetary Fund),” said Miftah.
He concluded, “Give me three months. We are all in this together. Let me save this country from problems. Pakistanis will start importing again.â€
