Dar reaffirms resolve to make International payments on time

ISLAMABAD (APP) - Minister for Finance Muhammad Ishaq Dar on Saturday reaffirmed the firm resolve of the government to ensure international payments on time in order to fulfill all the commitments.

Addressing a press conference, he said that all the arrangements for due payment during the months of May and June were in place, which would also have no impact on foreign exchange reserves held with local commercial banks and State Bank of Pakistan.

The minister said that by the end of the current month (June), payments of two Chinese banks, including $1 billion of China Development Bank and $300 million of Bank of China, were due.

He said the adoption of formal payment process usually takes time and sometimes, it takes months, adding that to simplify the formal procedures, the Ministry of Finance initiated negotiations with both the banks and ask them to make payments before last week.

Ishaq Dar further informed that the government has paid US$1 billion to China Development Bank and $300 million to Bank of China without any extra charges.

"The payment to China Development Bank was made on June 12, 2023 and under the understanding between both countries, the Chinese banks will payback this amount to Pakistan on Friday," he added.

The minister said that another payment amounting to US$300 million was also made on Friday, adding that this payment would also be received to Pakistan within next three to four days, he added.

The finance minister further said that all the arrangements for the payment of US$1 billion, which was state-to-state payments between both countries, were also finalized and matters were in order.

About the rumours regarding winding-up of business by Shell Company, the minister said that the company was not closing its business from Pakistan.

He said the company was intended to divert its share to another foreign direct investor, which would have no impact on its business operations and not it was shifting its capital abroad.

He informed that Shell was not only operating in Pakistan but it was also running its business in many other countries of the world and intended for revising its business plan.

He said that the government was also aware about all the programs of the company and it was legally bound to take the government into confidence. "Shell is selling its shares to another international investor and its business will continue and no one will be deprived from livelihood," he concluded.