Dollar value: Will Ishaq Dar take action against PML-N public office holders?

Finance Minister Ishaq Dar has unveiled his strategy to bring down the US dollar value below Rs200 and hinted at action against the responsible ones who had artificially brought up the value of the USD versus PKR.

“The actual value of the Pakistani rupee is less than 200 against the greenback and it will be brought down, as it is currently undervalued,” he said while talking to Hamid Mir in Capital Talk on Geo News.

Dar said the dollar was strong internationally, but “we will bring it below 200 against our currency soon.” Dar faces the daunting task of stabilizing an economy that has for months been in a tailspin, facing multiple threats of high inflation, a widening current account deficit and falling reserves.

He has strongly favoured intervention in the currency markets in three previous stints in the job and is also expected to strengthen the currency which closed at Rs227.29 against the US dollar on Monday.

“Imran and his entire team are obsessed with me because they fear that we [PMLN] will stabilise the economy once again as we did back in 2013,” he said, reiterating his suggestion that the country needs a charter of the economy.

“The Pakistan Bureau of Statistics (PBS) is an independent institution and it does not involve in manipulative activities,” he said while replying to a question about the PTI leader Hammad Azhar accusing Dar of manipulating the economic data.

Speaking about former finance minister Miftah Ismail, Dar said: “I have to handle the International Monetary Fund (IMF) matters, so from now on, neither Miftah nor anybody else has to worry about anything.”

A day earlier, Miftah termed the government’s decision to not increase the petroleum development levy (PDL) this month without IMF’s approval, “reckless”. “Miftah is my colleague but he has his own point of view and I have mine,” he said, advising him not to worry about the IMF as it is now his responsibility to deal with the body.

“I know how to do it as I have solutions and have been dealing with them for the last 25 years.” The finance minister said: “Prime Minister Shehbaz Sharif himself told me that during the United National General Assembly (UNGA) session, where Miftah was also present, he proposed the IMF officials freeze taxes to which they did not refuse.”

“I believe that the flood-and-inflation-weary people shouldn’t be burdened further,” he said while taking a jibe at his fellow PML-N member for “burdening the masses” with his policies. Dar said rupee’s depreciation caused a surge in inflation adding that the suffering the people were currently passing through could not be forgotten.

He said the speculators cashed in on the rising value of dollar against rupee and made a fortune. The finance minister said the credit for the IMF deal went to the PMLN-led government.

Dar advised Imran to keep his mouth shut, as he knew how to deal with him. He said Imran was made for dealing and wheeling and he did not want to wash the PTI chief’s dirty linen in the public.

Analysts reminded that the value of the US dollar was Rs182 during the Imran Khan-led PTI government which was jacked up from Rs182 to Rs250 within just five months after PML-N came into power and Miftah Ismail was appointed finance minister.

They also reminded that the incumbent government found eight banks involved in creating an artificial shortage of the USD which increased its price against PKR.

Analysts also questioned Dar whether he is going to take action against his own government and public office holders including Prime Minister Shehbaz Sharif and former finance minister Miftah Ismail whose policies devalued PKR against USD.