We can extend time frame for returning loan to Saudi Arabia can be extended if need be: Shaukat Tarin tells Senate


Finance Minister (FM) Shaukat Tarin has said in Senate the time frame for returning Saudi loan is one year and we will extend the date in this regard if need be.
JI Senator Mushtaq Ahmad asked from FM if any clause for extending date in returning Saudi loan is included in the agreement. Earlier the loan was obtained at the interest of 2.3 percent and now why it has been acquired at the rate of 4 percent.
FM while giving reply said time frame for returning Saudi loan is one year. We will extend the date for returning the loan if need be. Interest rate is increasing in the world. The interest rate of 4 percent in respect of Saudi loan is not big thing. We had sought loan from Saudi Arabia for one year. The conditions for loan are laid. It is not necessary that they should be implemented.

He pointed out that Saudi government has said if we go bankrupt then they can take back this loan. We will not become bankrupt.

According to FM reply, our export has gone up from 25 to 28 percent. There was pressure on rupee. Now rupee has come to the level of Rs 174 per dollar. Now rupee is not undervalue. Only there is difference of Rs 1 or 2. We requested Saudi government to provide us oil on deferred payment. At present we are using our own oil reservoirs.

We lowered sales tax on petrol and PDL. The oil prices have gone up over 100 percent in international market. We have increased the petroleum products prices by 40 percent. We are endeavoring that least financial burden is shifted to the people. The coal will have to be imported to run coal based plants. The coal is being extracted from Thar to run certain power plants. If you say that we should stop importing petrol but it can not be done so.

He told the house that corona vaccine valuing 2 billion dollars has been purchased. We imported sugar and wheat due to which import rose. We enhanced duty on CBUs which led to increase in the prices of vehicles.