Finance Minister Dismisses Closure Speculations
Pakistan’s Finance Minister, Ishaq Dar, addressed the ongoing speculations surrounding Shell Pakistan Limited’s decision to sell its shares in the country, emphasizing that the global energy giant was not closing its business operations. Speaking during a press conference, Minister Dar affirmed that any decisions made by Shell would be in compliance with the government’s regulations and commitments.
Job Security and Business Continuity
Contrary to rumors suggesting job losses and capital outflows, Minister Dar clarified that Shell intended to sell its shares to a global investor while assuring the continuation of the company’s operations and the job security of its employees. He firmly stated that the sale of shares did not involve the transfer of funds abroad and dismissed the baseless speculations regarding its impact on the country’s economy.
Government Awareness and Transfers
Minister Dar disclosed that the Government of Pakistan had been aware of Shell’s decision to sell its shares several months ago. He further revealed that the shares would remain within Pakistan and be transferred to a new owner. Additionally, he highlighted that Shell was selling shares to various countries, including Germany and England, emphasizing that this business maneuver did not indicate the closure of operations or any employment terminations.
Chinese Banks’ Financing Arrangements
Addressing concerns regarding financing arrangements with Chinese banks, Minister Dar assured the public that Pakistan had a well-established process of repaying its loans. While acknowledging previous delays in payments, he revealed that the government had initiated proactive measures to complete payments before the fiscal year-end on June 30. By coordinating with the Chinese banks and offering early repayment, Pakistan aimed to adhere to standard practices and avoid additional charges.
Stability in External Payments
Minister Dar emphasized the government’s commitment to ensuring external payments, noting that Pakistan had already made a payment of $300 billion to China. He anticipated that this amount would be rolled over within the next three to four days, contributing to the stability and transparency of financial transactions between the two nations.
Published in PakWeb, June 18th, 2023.
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