Pakistan has informed the US about its decision to buy oil from Russia but only at terms that are more favorable than those offered to its arch-rival India, said Finance Minister Ishaq Dar on Wednesday.
In his first press conference after his visit to Washington, Dar also disclaimed any intention of turning to the International Monetary Fund for assistance or “pleading” with other nations to send aid to flood victims. But he gave the markets his word that they shouldn’t panic and that the foreign exchange reserves will shortly increase.
“The government has been actively pursuing the policy of purchasing cheaper oil from Russia and I have sounded the Americans about our decision during a meeting with the US officials,” sad Dar while speaking to media after the All Pakistan Chartered Accountants Conference 2022. The conference was arranged by the Institute of Chartered Accounts of Pakistan.
Although the 2% decrease in crude oil output could bring up oil prices, damaging Pakistan’s fragile external sector situation, the announcement is in keeping with Pakistan’s outspoken support for Saudi Arabia’s plan to reduce oil production.
The finance minister said that if India could benefit from buying Russian oil, Pakistan might as well. “We will not ink a deal on terms that are worse than India’s,” said Dar.
India has overtaken China as Moscow’s top oil consumer, and China is now buying Russian oil at a considerable discount.
Dar also said that Pakistan did not ask for any relief from the IMF during his last week’s visit to Washington, nor it has a plan to do so.
“The sovereign commitments must be honored and there should not be a change of plan with the change of guard,” he added while referring to the ouster of Miftah Ismail. He said that Pakistan would complete the IMF program by June of next year.
“The sovereign commitments must be honored and there should not be a change of plan with the change of guard,” he added while referring to the ouster of Miftah Ismail. He said that Pakistan would complete the IMF program by June of next year.
Dar’s statement came amid international lenders’ push to Pakistan to implement the reform agenda agreed upon with the IMF and the World Bank, in addition, to letting the rupee regime stay flexible.
