Shell not closing operations in Pakistan, says Ishaq Dar

ISLAMABAD: Following Shell Petroleum’s decision to sell its share, Minister for Finance and Revenue Ishaq Dar on Saturday clarified that the country was not closing its operations in Pakistan, ARY News reported.

Addressing a press conference, the finance minister said that the global energy giant was intended to divert its share to another foreign direct investor, “which would have no impact on its business operations and not it was shifting its capital abroad”.

Ishaq Dar informed that Shell was not only operating in Pakistan but it was also running its business in many other countries of the world and intended for revising its business plan.

He said that the government was also aware about all the programs of the Company and it was legally bound to take the government into confidence.

“Shell is selling its shares to another international investor and its business will continue and no one will be deprived of livelihood’, he added.

It is pertinent to mention here that Shell Petroleum made the strategic decision to sell its shares and decided to exit the Pakistani market.

Board of Directors of Shell Pakistan Limited (SPL) held a meeting with its parent firm Shell Petroleum Company Limited (SPCo) where it was announced their intent to sell its shareholding in SPL.

“Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals. Shell is seeing strong interest from international buyers,” Shell Pakistan spokesperson said in a statement.

The spokesperson stated that the announcement of the sale of shares by the global petroleum giant company will not have any adverse effects on the business operations of the company.

‘International payments’

Speaking during the presser today, Ishaq Dar reaffirmed the firm resolve of the government to ensure international payments on time in order to fulfill all the commitments.

“All the arrangements for due payment during the months of May and June were in place, which would also have no impact on foreign exchange reserves held with local commercial banks and State Bank of Pakistan (SBP),” he noted.

The minister said that by the end of the current month (June), payments of two Chinese banks including $1 billion of China Development Bank and $300 million of Bank of China were due.

He said the adoption of formal payment process usually takes time and sometimes, it takes months, adding that to simplify the formal procedures, the Ministry of Finance initiated negotiations with both the banks and ask them to make payments before last week.

Ishaq Dar further informed that the government has paid $1 billion to China Development Bank and $300 million to Bank of China without any extra charges.

The payment to China Development Bank was made on June 12, 2023 and under the understanding between both countries, the Chinese banks will payback this amount to Pakistan on Friday, he added.

The minister said that another payment amounting to $300 million was also made on Friday, adding that this payment would also be received to Pakistan within next three to four days, he added.

The finance minister further said that all the arrangements for the payment of $1 billion, which was state-to-state payments between both countries, were also finalized and matters were in order.

A day earlier, the State Bank of Pakistan (SBP) said it has received $1 billion from China.

“This is to inform you that $1 billion has been received from China,” said the central bank in a brief message to journalists on Friday night.

The refinancing came after Finance Minister Ishaq Dar informed the National Assembly’s (NA) Standing Committee on Finance and Revenue that China would be refinancing the $1 billion loan it had given to Pakistan earlier.