Finance Minister Ishaq Dar, who has aimed at improving the currency exchange rate, has said that the dollar would go below Rs200 as the prevailing value of the greenback was not “real”.
“The real value of the dollar is less than Rs200. I won’t tell you the figure,” he said in an interview with journalist Hamid Mir aired on Geo News. “Hopefully, it will go below Rs200. The Pakistan Bureau of Statistics is independent and it does not manipulate.”
Dar, who became the finance czar on September 28, admitted that the US currency was strong in the international market and cited the example of the UK sterling which continued to fall in front of it.
However, he claimed that the government would bring it down below Rs200 with its policies. Dar added that he has done his homework.
The claim comes as the rupee continues to strengthen against the dollar in the inter-bank market. It appreciated by 0.51% on Monday. The local currency as of October 3 stands at Rs227.29, according to the State Bank of Pakistan.
Miftah’s announcement to step down and Dar’s return to Pakistan coupled with the decreasing oil prices have led to increasing in the rupee’s value. The finance minister appreciated that the moment he sat in the airplane to reach Pakistan the speculators changed their course and the dollar started to fall.
He stressed the need for removing the speculative angle, which shoots the dollar value.
“It was a man-made disaster,” Dar said while speaking about the state of the economy and currency. He expressed hope that the PTI’s planned long march in the third week of October would not impact the currency market.
Dar also spoke about his predecessor Miftah Ismail’s concerns over the recent decrease in petrol prices.
Replying to PTI leader Shaukat Tarin’s comment, Miftah in a series of tweets slammed the former government for breaking the International Monetary Fund deal. But, he also criticised his party for the fuel rate decrease.
“Not increasing PDL this month without IMF approval is reckless, but what PTI did with our economy was unforgivable,” he said.
Dar started his response by saying that everyone has their own view. “It’s my responsibility to handle the IMF. Mr Miftah has not to deal with the IMF or someone else.”
Pakistan has assured the IMF to increase the petroleum development levy by Rs50 till next year as per the details of the letter of intent. But, the floods triggered by heavy rains have pummelled Pakistan and the country has asked for relief from the world.
“Prime Minister [Shehbaz Sharif] told me that on the sidelines of UN General Assembly, Mr Miftah was also there, he proposed that freeze our taxes for three months. Firstly, they did not say no. Secondly, she said that she would talk to the board about the process,” Dar was apparently talking about Shehbaz’s meeting with IMF Managing Director Kristalina Georgieva.
He further said that the summary did not pertain to increasing but decreasing the prices. “I think it was not justified to impose Rs10 PDL on half of Pakistan which is under water and the burdened people. So I passed on the relief to people. Mr Miftah might have been comfortable with it. But, I have been dealing with the IMF.”
He advised Miftah and “everyone” to not worry as it was his responsibility. He claimed that he knew how to deal with the global lender.
Dar owned the decision and said he took the premier onboard before the decision. “The reason is I have other solutions and I deal with it,” he said and described Miftah’s tweet as a “bad thing”.
“It was better to call me than going into the public,” he said, “I can give a couple of solutions to the IMF.”
