Dar condemns IMF approach, reiterates no compromise on nuclear, missile program

Finance Minister Ishaq Dar rejected the demand that Pakistan relinquish its long-range nuclear missiles and argued that no one could dictate the range of missiles Pakistan may possess.

Ishaq Dar also criticized the International Monetary Fund (IMF) for its “unusual” stance.

Pakistan’s renewed efforts to improve relations with China, which recently prevented Islamabad’s default by refinancing two commercial loans, coincided with the minister’s highly unusual statement. However, a Chinese deposit of $2 billion matures on March 23 (Pakistan Day) has not yet been rolled over, and Islamabad is still waiting.

“No one has the authority to limit Pakistan’s access to nuclear weapons or its ability to possess a wide array of missiles. During a special Senate session attended by ambassadors from various nations, Dar stated, “We must have our own deterrence.

The finance minister has brought up the subject of nuclear missile range for the first time in public. However, in private conversations, some Pakistani officials claimed that a Western nation had long demanded that their long-range nuclear missile program be terminated.

The Shaheen-III is Pakistan’s long-range nuclear missile, able to deliver nuclear warheads 2,750 kilometers away, encompassing all of India and portions of the Middle East.

Dar stated, “No one is going to compromise anything regarding Pakistan’s nuclear or missile program – ever.” He may have ended the debate regarding whether Pakistan will eventually relinquish its nuclear arsenals in exchange for the IMF program.

Response to a query raised by an honourable Senator as to the causes of delay in signing off the Staff Level Agreement with IMF during Golden Jubilee Celebrations of the Senate of Pakistan👇 pic.twitter.com/BMECbZNXUs

— Ishaq Dar (@MIshaqDar50) March 16, 2023

The Prime Minister’s Office clarified the nuclear program and its safety hours after Ishaq Dar’s statement.

The Prime Minister’s Office stated that Pakistan’s nuclear and missile program is a national asset the government jealously protects. It was added that the program is completely secure, impenetrable, and not under any stress or pressure.

According to the Prime Minister’s Office, the nuclear and missile programs continue to serve the purpose they were designed for.

In light of recent statements, press releases, and inquiries, the Prime Minister’s Office asserted that various claims about Pakistan’s nuclear and missile program were being disseminated via social media and print media. Even the routine visit of Rafael Mariano Grossi, director general of the International Atomic Energy Agency, for the peaceful nuclear program was portrayed negatively.

Dar also addressed the delay in the IMF staff-level deal, claiming that the government was not to blame.

Dar stated, “Every review appears to involve a new program, which is highly unusual for the IMF.

The ongoing discussions for the ninth review, which were supposed to conclude by February 9 but have not yet, have been ongoing since January 31.

“It has been a lengthy, unusual, excessively lengthy, time-consuming, and demanding endeavor, but we have completed everything,” said Dar, expressing his frustration with the IMF.

The SBP law had previously been amended by “this very parliament,” after which the monetary policy, in his opinion, had become too independent. However, the 2019 agreement signed by the PTI government was distinct.

During the previous review, Dar noted that several friendly nations had agreed to provide Pakistan with bilateral assistance. “The IMF is now requesting that these commitments be carried out and fulfilled. But, according to the minister of finance, this is the only holdup.

Pakistan requires $6 billion in new loans to close the funding gap, but Saudi Arabia, the United Arab Emirates, and Qatar have not provided these funds despite repeated requests.

Chinese generosity.

According to sources from The Express Tribune, Pakistan is intensifying its efforts to normalize its relations with China. In addition, they mentioned that the Chief of Army Staff is scheduled to visit China the week after the Foreign Secretary, who has already been there.

Before departing for Beijing, the foreign secretary met with Finance Minister Ishaq Dar in the Q-block.

China has recently agreed to refinance the $2 billion in foreign commercial loans and has already transferred $1.2 billion into the central bank accounts.

Ishaq Dar, the finance minister, tweeted on Thursday that the paperwork for a second Chinese financing of $500 million as part of the $2 billion financing had been finalized, and the funds would be transferred shortly. The Chinese injection has assisted in maintaining the official foreign exchange reserves at $4.3 billion, which is still alarmingly low but insufficient to prevent default.

According to sources, China has not yet renewed the $2 billion SAFE deposit due on March 23. SAFE, the State Administration of Foreign Exchange, has been renewing the $2 billion loan annually due to China’s inability to repay it.

Premier Shehbaz Sharif has formally requested that the Chinese government renew Pakistan’s maturing loans. These loans are acquired for project financing, foreign exchange reserve building, and budget support.

Beijing promised the IMF in 2019 to roll over its debt until the Fund’s program expires.

According to diplomatic sources, administrative hiccups have occurred, and China will soon refinance its $2 billion debt.

Unlike the IMF and the United States, China is proud to provide Pakistan with financial assistance without imposing conditions.

Pakistan has not been able to fulfill its obligations to Beijing, particularly regarding the $1.15 billion in unpaid debts owed to Chinese Independent Power Producers (IPPs). Monday, the special assistant to the prime minister, Syed Tariq Fatmi, wrote to Ahsan Iqbal to express his concern over the non-payment of $1.15 billion in Chinese debt, which he said was causing “huge concerns” that Pakistan must address immediately.

He added that there were still discrepancies between the Funds raised by the Pakistani side and the revolving account agreement signed by the two countries and that currency exchange restrictions applied to Chinese power plants at Hubco, Sahiwal, and Port Qasim.

During the visit of former Prime Minister Imran Khan and incumbent Prime Minister Shehbaz Sharif, Pakistan requested a rollover of the SAFE deposits. In February of last year, Pakistan requested a $21 billion lifeline, including a $10.7 billion rollover of commercial and SAFE deposits.

Pakistan had also requested that the currency swap facility be increased from $4.15 billion to $10 billion, which would have necessitated additional borrowing of $5.15 billion, which the Chinese government refused to authorize.

Since 2011, Pakistan has utilized the Currency Swap Agreement, a Chinese trade finance facility, to pay off foreign debt and maintain adequate gross foreign currency reserves for trade-related purposes.

The benefit of this arrangement is that the additional Chinese loan will not be included in Pakistan’s external public debt or appear on the federal government’s books.