Dar says going to Paris Club for funds 'last resort'

ISLAMABAD: Finance and Revenue Minister Ishaq Dar said Friday that seeking debt relief from the bilateral Paris Club creditors would be his last resort, underlining that agencies downgrade the rating of countries approaching the Paris Club.

Dar, while speaking on Geo News' programme "Aaj Shahzaib Khanzada Ke Saath", said: “We plan on doing business and investors hesitate when countries seek relief from bilateral Paris Club creditors.”

Earlier, Dar's predecessor Miftah Ismail said the country was neither seeking nor there is any need for any relief from commercial banks or Eurobond creditors.

“Given the climate-induced disaster in Pakistan, we are seeking debt relief from bilateral Paris Club creditors,” he had said.

Criticising Moody’s for their recent rating downgrading the Government of Pakistan's local and foreign currency issuer and senior unsecured debt ratings to Caa1 from B3, Dar said that he spoke with the rating agency yesterday.

He said that the rating agency adopted a professionally discriminatory stance towards Pakistan.

“I told them they could have waited for a few days,” he said, revealing that Moody’s informed him about their working in the background for the last four months.

“Moody’s ratings indicate as if Pakistan is going toward default,” Dar remarked.

If agencies see [countries] going toward the Paris Club, they decrease the ratings

Commenting on the deal with the International Monetary Fund and his scheduled meeting with the lender’s staff scheduled later this month, the finance minister said that the government will try its best to fulfil commitments agreed upon by his predecessors with the Washington-based lender.

“We have a response to satisfy IMF on petroleum levy,” he said, shedding light on the government’s decision to reduce petroleum prices in the country given the global lender’s reaction to the reduction in which they reminded Pakistan about the conditions in place.

Regarding his scheduled meeting with the IMF staff scheduled later this month, Dar said that efforts will be made to fulfil the conditions agreed upon by his predecessors.

Shedding light on the rupee-dollar parity, the finance minister stated that he is hopeful the rupee value will fall below the 200-mark against the US dollar within the next few days.