Various options under study to mobilise foreign inflows: Waqar

Secretary Finance Dr Waqar Masood has said that the government is working on various options to mobilise foreign inflows to maintain foreign exchange reserves at desirable level. During the briefing to the Senate Standing Committee on Finance here Thursday, Waqar Masood said that tender to auction the 3-G licenses has been issued and the process would be completed by the end of March 2012 to mobilise $800 million.
He said that all the properties have been transferred to the Etislaat and other matter would be finalised soon to ensure release of stalled payment of $800 million on account of privatisation of Pakistan Telecommunication Company.
Responding to the questions of the Committee members, he said that the current account deficit has widened during the current fiscal year because the government had made US $1 billion deferred payment for oil import of last year. Waqar Masood said that government is also planning to float $500 million Sukuk bonds in the international market against the motorway. We have received some queries in this regard and are exploring all the options. Moreover, he said that $500 million Euro Bonds are ready to be offered in the international market and government is waiting for positive signals from the financial advisor. Secretary Finance was also optimistic that some inflows expected from the Asian Development Bank would also materialise in the current fiscal year. He said that the materialisation of these inflows would help reduce pressure on external account.
Waqar Masood said that increase in oil import was largely because the oil refineries were operating on 65% capacity owing to the problem of circular debt. He said that serious efforts have been made to address the problem of circular debt by improving governance of power distribution companies.
He said that new management was inducted in the distribution companies and tariff differential has been reduced to Rs 1.42 per unit. These measures, he said would reduce oil import and pressure on current account deficit. Moreover, he said that agreement signed for currency swap with Turkey and China would also contribute to this effect.