By Staff Reporter
ISLAMABAD:
Minister for Finance and Revenue Miftah Ismail Friday said the International Monetary Fund (IMF) would release the tranche (worth US$1.17 bn) to Pakistan after its board meeting on Monday.
In a press conference here, the minister stated that Pakistan has already met all of the IMF’s standards and that the board will most likely approve the release of the tranche on Monday (August 29). He stated that the $4 billion gap has now been bridged because Qatar and Saudi Arabia have also pledged fresh investments and the ability for Pakistan to obtain oil on deferred payment.
The minister said the visit of PM to Qatar remained successful as Qatar had agreed to make $3 billion investment in Pakistan’s various sectors. Further he also made it clear that there was not discussion or agreement of selling Pakistan International Airlines (PIA) or Roosevelt Hotel to Qatar saying that Qatar was interested in getting only the management control of Pakistan’s big airports.
Qatar is also interested in investing in Pakistan’s seaports and LNG facilities, for which the Prime Minister has advised hiring an international advisor to get an accurate price estimate, he said, adding that Qatar is also interested in investing in large-scale solar enterprises.
“The government intends to build solar power plants with an installed capacity of 8000 MW, as solar energy would aid in the generation of cheaper electricity for consumers,” he added. “They (Qatar) have also expressed an interest in investing in Pakistan’s capital market.”
The minister was informed that Saudi Arabia had announced a $1 billion investment in Pakistan along with providing oil on deferred payment. Similarly, he said UAE had also announced to invest primarily in government shares worth $1 billion. With respect to the public concerns over extra electricity bills this month, the finance minister said the Prime Minister was very much worried over hike in the electricity bills.
IMF
We had to raise electricity prices for all types of consumers due to IMF pressure, he said, adding that in May, electricity demand was at an all-time high due to unprecedented hot weather conditions, and as a result, the government had to run even the most expensive power plants run by furnace oil, which costs around Rs 59 per unit.
He stated that the impact of the previous month’s gasoline price adjustment (FCA) was visible in the current month. On the instruction of the Prime Minister, he told the IMF that the Pakistan government would protect those who use up to 200 units of power every month. He stated that the IMF had granted Pakistan’s request in this regard.
Miftah Ismail added that 56% or 17.1 million out of around 30 million electricity consumers would be exempted from the fuel adjustment.
He said the government would have to bear Rs 20 billion cost in this regard. He asked the consumers not to pay the current bills as a new bill would be issued soon in which there would be no FCA. He informed that the PM had formed another committee which would deliberate upon giving FCA exemption to those consuming 200 to 300 units of electricity.
Regarding the recent flood in Pakistan, the minister also praised the World Bank for providing $370 million in financial aid to Pakistan, which would be received in a few days.
Similarly, he stated that the Asian Development Bank (ADB), the European Union (EU), the United States (US), China, and other development partners had pledged financial assistance to flood victims.
He also invited the general public to contribute to the PM’s special flood relief fund. Ismail stated that the finance division had already allocated Rs 28 billion to the Benazir Income Support Programme (BISP) for the payment of Rs 25000 to each flood-affected recipient. Similarly, Rs 5 billion has been allocated to the National Disaster Management Authority (NDMA), which will pay flood victims. IMF
