Tarin heralds Pakistan reaching IMF deal soon

Says just a bit left before the deal is agreed upon: Saudi oil facility to benefit Pakistan

By: News Desk      Published: 12:35 PM, 27 Oct, 2021
Tarin heralds Pakistan reaching IMF deal soon
TV grab.

PM Advisor on Finance and Revenue Shaukat Tarin has heralded the news of receiving a much-needed financial revival package amounting to $4.2 billion from Saudi Arabia, besides proclaiming to nearing a deal on the release of the stalled loan programme of the International Monetary Fund, reported 24NewsHD TV channel.

Enumerating the benefits of the Saudi deal which was announced yesterday at the conclusion of Prime Minister Imran Khan’s three-day visit to the kingdom, Mr Tarin touted that the KSA had provided a $4.2 billion economic package to Pakistan. 

According to the deal, Saudi Arabia would deposit $3 billion in the State Bank of Pakistan and would provide $1.2 billion oil deferred payments facility to Pakistan during the year, he added.

PM Advisor on Finance and Revenue Tarin was holding a presser along with Federal Energy Minister Hammad Azhar in Islamabad on Wednesday.

Mr Tarin maintained that that inflation was rising in the country and our rupee was under pressure. “If we get oil on deferred payment, then we will be benefitted from this facility,” he argued. 

On the IMF deal, the advisor divulged that the government had almost reached the agreement with the Fund. “Only one or two things are left, which will soon be agreed upon,” he assured.

Mr Tarin said that the uncertain situation regarding the deal with the Fund would vanish soon. He said he told the global lender about petroleum levy. He pronounced that non-tax revenue would be decreased and volume of tax revenue would be increased. He further informed that talks on primary balance were also be held. 

“I can only tell you this much about the IMF deal so far,” Tarin insisted.

Mr Azhar said that inflation was increasing across the world. He was of the view that gas and urea were still cheap in Pakistan as compared to other countries of the world. He stated the government had given Rs450 billion sales tax exemption on petroleum products in a year’s time. 

Mr Azhar said: “The pressure on our system is rising. We are under pressure that the government has already given too many tax exemptions.” 

The energy minister said that in the next six months, it was expected that inflation would decrease globally and he promised the trickle down effects in its wake.

Talking to the media, Mr Azhar said that Pakistan had a capacity to generate 64,000MW electricity from hydropower. So far, we are producing 29% of our total electricity from the hydro source, he added. He maintained that the previous governments had put their focus on the imported fuel projects. 

The energy minister showed the government’s resolve to increase the wind power generation share from 29% to 43%. He informed that for the first time in the country’s history, a wind power policy was being formulated in Gilgit-Baltistan.