FinMin says Pakistan has sufficient oil, energy supplies until Nov

Finance Minister Muhammad Aurangzeb said that Pakistan’s crude oil and other energy supplies are satisfactory. He said the government has made sufficient provisions to cover the country’s energy needs till November and further efforts are being taken to secure supply during winter.

Aurangzeb remarked while addressing a ceremony at a private university in Lahore that Pakistan has not had an energy shortage and there were no queues at gas stations or law and order issues due to an energy crisis.

He did acknowledge, however, that more had to be done to satisfy the country’s gas and liquefied natural gas (LNG) needs.

Talking about the economic performance of the country, the finance minister said that the information technology (IT) export services of Pakistan increased from one billion dollars to 4.6 billion dollars. “We expect IT exports to reach $5.5 billion in the current fiscal year,” he continued.

Aurangzeb said foreign exchange reserves were sufficient to cover more than three months of imports and had reached a record high. He recalled that at one time the reserves had dropped to the equivalent of only two weeks’ imports.

Pakistan’s credit rating has improved three times since April last year and the administration had taken major steps to recover access to international financial markets, he said.

Pakistan carried out a private placement in April this year, tapped the international markets by the issuing of Panda bonds and issued bonds worth three billion euros in the first week of September, the minister said.

Investors from Asia, the Middle East, Europe and the United States showed interest, he said, adding that orders received from investors for Pakistan’s euro bonds were twice the amount offered.

Aurangzeb also said that international investors were reviewing Pakistan’s economic outlook after its interaction with the International Monetary Fund (IMF). The current IMF program is due to expire in October next year, he noted.

On energy supplies, the minister said Pakistan had taken adequate measures for energy procurement and supplies in spite of regional crises. Arrangements were made to meet requirements until November and preparations were in hand for the winter season.

The finance minister said the administration has opted for targeted subsidies instead of blanket subsidies so that the assistance reaches the deserving part of the community.

He said that motorbikes, three wheelers and automobiles with engines below 800cc were given targeted incentives. So far, the relief had reached around 12 million distinct beneficiaries, while an estimated 40 to 50 million people across the country had benefited altogether.

“Pakistan is continuing structural reforms along with efforts to maintain economic stability, and reforms have moved beyond the planning stage and are now being implemented,” Aurangzeb added.