China stood with Pakistan in time of financial need: Finance Minister Ishaq Dar

Islamabad: Finance Minister Muhammed Ishaq Dar has said China had stood with Pakistan in the time of financial need.

Addressing a news conference here, he maintained that all the arrangements for due payment during the months of May and June were in place, which would also have no impact on foreign exchange reserves held with local commercial banks and State Bank of Pakistan (SBP).

The minister mentioned that by the end of the current month (June), payments of two Chinese banks including US $1 billion of China Development Bank and US $300 million of Bank of China were due.

He elaborated that the adoption of formal payment process usually takes time and sometimes. “It takes months but to simplify the formal procedures, the Ministry of Finance initiated negotiations with both the Chinese banks and requested them to allow payments before last week (of June),” he added.

Ishaq Dar informed that the government had paid US $ 1 billion to China Development Bank and US $ 300 million to Bank of China without any extra charges.

“The payment to China Development Bank was made on June 12, 2023 and under the understanding between both countries, the Chinese banks paid back this amount to Pakistan (roll over),” he mentioned.

The minister highlighted that the other payment amounting to US $ 300 million was also made on Friday, adding that this payment would also be returned to Pakistan within next three to four days. As a roll over

The finance minister said that all the arrangements for the payment of US $ 1 billion, which was state-to-state payments between Pakistan and China were mutually agreed.

He reaffirmed the firm resolve of the government to ensure international payments on time in order to fulfill all the commitments.

About the rumors regarding winding-up of business by Shell Company, Dar said that the Company was not closing its business from Pakistan.

He said the Company was intended to divert its share to another foreign direct investor, which would have no impact on its business operations and not it was shifting its capital abroad.

He contended that Shell was not only operating in Pakistan but it was also running its business in many other countries of the world and intended for revising its business plan.

He underlined that the government was also aware about all the programs of the company and the company was legally bound to take the government into confidence.

“Shell is selling its shares to another international investor and its business will continue and no one will be deprived from livelihood,” he stated.