Business

‘Hard to imagine buying Russian oil’: Miftah Ismail says in CNN interview

Published

3 years ago

Farwa

Miftah says Russia neither offered oil nor responded to former govt’s requests.
Says incumbent govt asked Russia and Ukraine, whoever can, to sell wheat to Pakistan.
Says impossible for Pakistani banks to open LCs or arrange to buy Russian oil at this point.

KARACHI: Finance Minister Miftah Ismail on Tuesday said that Western sanctions have made importing oil from Moscow impossible despite the Pakistani government’s request to buy wheat from Russia and Ukraine.

“Russia has not offered us any oil either. It is difficult for me to imagine buying Russian oil,” Miftah said in a conversation with CNN.

The minister said that as Russia is facing sanctions, it hasn’t responded to the previous government’s letter seeking imports. Regardless of this, the incumbent government has again asked both Moscow and Ukraine, whoever can, to export wheat to Pakistan.

“We would be happy to buy wheat from them,” he added.

Miftah further stated that Pakistan would surely consider if Russia offers oil trade at cheaper rates as there are no restrictions on buying the supply.

He said, however, it would be not possible for Pakistani banks to open LCs or arrange to buy Russian oil at this point.

Refuting former prime minister Imran Khan’s claims, Ismail said that Russia has not offered a 30% discount on oil or wheat.

“Let’s be clear. I don’t know where Khan gets these numbers from.

“Khan just makes it up as he goes along. He is the guy who was saying we (PDM) were brought in through an American conspiracy. And now he has come up with this new thing. If Russia was selling him cheap wheat and oil then why didn’t he buy it. He did not.”

He pointed out that the incumbent government is “at least” trying to initiate talks for wheat import because food is not under sanctions, unlike oil.

To a query regarding Pakistan’s negotiations with IMF, Ismail said, the government just finished a round of talks with the IMF in Doha.

“In particular, the IMF is looking to the budget I am going to present before the parliament in the early part of June. After that I am hoping we will reach a staff-level agreement,” he added

“What the IMF is looking for us to do is reverse the subsidies on oil, petrol and diesel in particular, that the previous government had given. It’s also looking for me to reverse some power sector or electricity tariff subsidies. These subsidies were introduced by the previous government in contravention with its own agreement with the IMF. I am pretty confident we should be able to sign an agreement with the fund, but there would be some austerity measures and some increase in taxation.”

He said the previous government in its waning days did a few things to violate agreements with the IMF, including giving unsustainably high subsidies on petrol and diesel and also on power.

“Khan knew it could not be sustained. And when we came to power he started going from city to city trying to rally the people and coming up with these theories, conspiracies and all the stuff and building a political pressure on us. That’s why it was difficult, but we finally took the plunge,” Ismail said.

In response to what Miftah said, former Human Rights minister and PTI leader Shireen Mazari said that its only the “fear of US” that is stopping the finance minister from buying Russian oil as there are “no sanctions” on Russian oil import.

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

2 days ago

Farwa

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

Business

In January 2025, RDA inflows reach 9.564 billion USD.

Published

2 weeks ago

Farwa

Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

Business

FBR lowers Karachi’s built-up structure property valuation rates

Published

2 weeks ago

Farwa

A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.