Dar surprised by State Bank’s bonds trading before rate cut

Senior PML-N leader Ishaq Dar on Saturday described the latest increase in POL prices as another inflation bomb and said the PTI government was supplying petroleum products at a much higher rate despite the lower price in the international market.

Dar, who is a close aide of PML-N supremo Nawaz Sharif, also noted in an earlier tweet that the State Bank of Pakistan (SBP) sold bonds worth Rs186 billion at higher interest rates but reduced the interest rate by 1 percent on the very next day.

The former finance minister recalled that the PML-N government provided petrol and diesel at the rate of Rs88 and Rs99 when the crude oil price in the international market in April 2018 was $72 per barrel. However, he added, the PTI setup was selling petrol and diesel for Rs100 and Rs101 respectively in June 2020 with the crude oil price available at $41.

عمران نیازی کا عوام پر ایک اور مہنگائی بم! جب عالمی تیل کی قیمت اپریل 2018 میں 72$ فی بیرل تھی تو #PMLN نے پٹرول 88 روپے اور ڈیزل 99 روپے پر عوام تک پہنچایا۔جون 2020 میں عالمی تیل کی قیمت 41$ ہے،PMLN دور سے %43 کم، لیکن #PTI عوام کو پٹرول 100 روپے اور ڈیزل 101 روپے میں دے رہی ہے۔

— Ishaq Dar (@MIshaqDar50) June 27, 2020

Separately, Dar said the State Bank on June 24 sold five-year and 10-year bonds at the rate of 8.44 percent and 8.95 percent. But the interest rate was reduced by on by percent to 7 percent on June 25, which meant that an amount of Rs1.86 billion could have been saved annually if the bonds were sold on June 25 or 26, he added.

24 جون کو اسٹیٹ بینک نے کُل 186 ارب روپے کی مالیت کے پانچ سالہ بانڈ 8.44 % پر اور دس سالہ بانڈ 8.95 % پر فروخت کئیے۔ 25 جون کو شرح سود 1 % کم کر کے 7 % کر دی۔ اگر بانڈ 25/26 جون کو بیچے جاتے تو سالانہ 1 ارب 86 کروڑ بچایا جا سکتا تھا۔ #عمرونا_وباء_کی_تباہیاں

— Ishaq Dar (@MIshaqDar50) June 26, 2020

He listed the government working as “Imrana pandemic’s destruction” while blasting the State Bank move.