-Ishaq Dar rules out need for specific steps to support Rupee
-Says increase in value of USD not a matter of grave concern
LONDON: Federal Minister of Finance Ishaq Dar said on Wednesday that talks with the International Monetary Fund (IMF) are progressing well and with ‘positive’ results are expected soon.
“During my visit, 58 meetings have been held with the IMF and the World Bank. In these meetings, a lively discussion was held with the top management,” said the Pakistan Muslim League-N (PML-N) leader while speaking to the media in London.
Referring to the recent increase in the value of the US dollar, the finance minister said it was not a matter of grave concern and that the real value of the dollar is much lower than the current rate. He also expressed hope that the greenback would fall to its real value.
“The rupee has been heavily undervalued,” Dar said, adding “It is due to speculation — and some players in the market have been responsible for that,” he said. “I thank those players in the market who have realised that that game at the cost of the national currency will not continue,” he asserted while highlighting that the exchange rate stabilised after traders learned he would take office.
Speaking about his meeting with PML-N supremo Nawaz Sharif, Dar said a number of issues were part of the discourse but refrained from giving away details, claiming it wasn’t necessary to inform the media about every matter.
On Sunday, during an interview, Dar said that he will seek rescheduling of some $27 billion worth of non-Paris Club debt, but will not pursue haircuts as part of any restructuring.
Dar ruled out the possibility of a default on the country’s debt, an extension of the maturity date on bonds due in December or a renegotiation of the current International Monetary Fund programme.
The minister said multilateral development banks and international donors have been “quite flexible” with ways to meet the country’s external financing needs estimated at about $32 billion after devastating floods. Some of this may come from reallocating funds from previously approved, slower-disbursing development loans, he added.
Dar, who is participating in the IMF and World Bank annual meetings just over two weeks after taking office, said that Pakistan will seek restructuring on equal terms for all bilateral creditors. – Agencies
