Pakistan can Buy Oil from Russia on As Lower Price As for India – Finance Minister Clears on the West & Washington

Islamabad: 19 Oct 2022 – Finance Minister Ishaq Dar on Wednesday said that Pakistan can buy oil from Russia at a lower price like India. He expressed hope that the West will not have any problem with Pakistan buying discounted oil from Russia at a time the country is fighting the challenges of the devastating flood. He said, ” I have cleared this on the officials in Washington.”

Talking to the media, Ishaq Dar said If India buys oil from Russia, ‘we also have a right’, the minister says as Pakistan aims to preserve its shrinking forex.

Economists have said Pakistan will have to explore all options to raise and save on its foreign reserves, which have fallen to around one month of imports that consist largely of oil and gas purchases.

Asked if Pakistan might turn to cheap Russian oil, Finance Minister Ishaq Dar told reporters: “We’re definitely considering it. If India is buying oil from Russia, we also have a right [to do so].”

The Group of Seven richest economies has been trying to enforce a price-capping mechanism on Russian oil exports by December 5, when European Union sanctions banning seaborne imports of Russian crude come into force.

Prime Minister Shehbaz Sharif has appealed for debt relief from the Paris Club, but Dar said on Wednesday that Pakistan would not seek a restructuring from that group of creditor nations, and neither would it default.

that the country’s foreign exchange reserves will improve in the coming days. The finance minister added that the news of Pakistan’s removal from FATF grey list will come in two days.

Earlier, while addressing the All Pakistan Chartered Accountant Conference, the minister said, “I want to convey a message to the markets. No need to panic, we are back in business and will sort everything out. There is nothing to worry about.”

He said that Pakistan will be fine and no one should have any problem because “Pakistan will not default”. The country was facing serious challenges but the current government saved it from default even though it had to pay a heavy political price, added the finance minister.

Ishaq Dar said that Pakistan would need about $32 to $34 billion to meet its obligations and financial needs for the fiscal year 2022-23. “These include about $22 billion in multilateral debt and a current account deficit of about $12 billion,” he added.

Dar, however, vowed that the government would work hard to fulfill the sovereign guarantees to protect the country’s dignity.

The minister once again clarified the government’s stand on rescheduling Paris Club loans. He said that soon after taking charge of the Finance Ministry, he had announced that the government would not approach the Paris Club for debt rescheduling.

Similarly, he also dismissed speculations about extending bond maturity dates beyond December 2022. He said that Pakistan is a sovereign country so it should fulfill its responsibilities on time for its reputation and honor.