Minister assures no breach in IMF deal after petrol price drop

• "We are still committed to the IMF programme and nothing has happened," Aisha Ghaus Pasha says.
• She reveals officials are scheduled to meet Fund representatives in October.
• Pasha assures SBP is investigating issue regarding banks involved in currency manipulation.

ISLAMABAD: Minister of State for Finance and Revenue Aisha Ghaus Pasha Tuesday assured that Pakistan has not breached any of the conditions laid forth by the International Monetary Fund (IMF) after the government reduced the price of petroleum products.

Ever since Finance Minister Ishaq Dar slashed the price of petrol last week, speculations regarding the future of the IMF deal have run rife.

Since he was sworn in Dar and his predecessor Miftah Ismail could not go along as both had a difference of opinion on the IMF deal and the phasing out of fuel subsidies.

Addressing the concerns, Pasha clarified that Pakistan had some space, which the government used to provide relief to the masses by slashing the petrol price by Rs12.63 per litre.

“We are still committed to the IMF programme,” she said, adding that the authorities wanted to provide the flood-weary masses with some relief without tampering with the IMF conditions.

She further added that government officials are scheduled to meet the Fund representatives in October where both sides will discuss things in detail.

Rupee-dollar fiasco

Shedding light on the rupee-dollar fiasco, the state minister said that the State Bank of Pakistan (SBP) is investigating the issue regarding the banks involved in currency manipulation.

“If any bank is found guilty, action will be taken according to the rules,” she added.

Earlier today, during the meeting of the National Assembly Standing Committee on Finance, member Barjees Tahir questioned the authorities concerned about why the dollar was not being controlled.

He urged the representatives of eight commercial banks, which were issued show-caused notices for quoting higher dollar rates against the rupee, to share details.

Committee Chairman Qaiser Ahmed Sheikh said that rates in these eight banks were different therefore they would have earned four times more profit.

“What is the mechanism which is now being practised after the return of [Finance Minister] Ishaq Dar which wasn’t being practised before,” he questioned.

Replying to the questions, SBP’s deputy governor said that all other banks, excluding those eight, will be interrogated. “We plan to take action against these banks; however, we are waiting for the investigation to conclude,” the official said.

Earlier, the Senate Standing Committee on Finance had summoned the representatives of eight commercial banks that were issued show-cause notices by the central bank on suspicion of currency manipulation.