ISLAMABAD: Finance and Revene Minister Muhammad Ishaq Dar clarified that the government won t take over foreign exchange held by commercial banks, saying his previous statement regarding the country’s reserves had been twisted by certain sections.
“My comment was largely misunderstood as nothing such will happen,” he said while addressing a presser along with Prime Minister Shehbaz Sharif and other ministers.
The minister had to clarify a couple of days after he told an interviewer that Pakistan’s foreign exchange reserves clock at $10 billion — a much higher figure than the central bank’s $5.6bn reserves as of Dec 30, 2022, because dollars held by commercial banks also belonged to the country.
The finance minister s comment triggered fears that the government might confiscate dollars from private banks.
Dar elaborated that prior to 1999, every cent that came into the country was deposited with the State Bank of Pakistan (SBP) and private banks were not allowed to keep dollars.
Speaking on this occasion, Finance Minister Ishaq Dar said time frame of three years has been set for the reconstruction phase.
He said both the federal and provincial governments from their development budgets will also contribute funds for this purpose.
As regards economic situation of the country, Ishaq Dar said that a detailed meeting has been held with the IMF.
He said Pakistan faces no threat of default and there is nothing to worry. He said all the external debt liabilities will be made on time.
