KARACHI: Federal Minister for Information Fawad Chaudhry said on Sunday that the State Bank of Pakistan’s (SBP) independence was in the country’s interest, adding that the Pakistan Tehreek-e-Insaf (PTI)’s government believes in the principle of institutional autonomy.
Addressing a press conference in Karachi, Fawad said that the government will appoint the State Bank’s board of governors after the passage of the SBP autonomy bill.
He hoped that with the resumption of the International Monetary Fund (IMF)’s programme, Pakistan’s financial difficulties will ease.
The minister said that the government’s allies are supporting the mini-budget, which he said will be passed in the coming days.
“2022 will be a year of stability for Pakistan,” he said, adding that “inflation in the country will ease in the coming months.”
Earlier this week, the government introduced the amended Finance, and State Bank of Pakistan (SBP) autonomy bills in Parliament for approval despite resistance by the opposition.
The sources privy to the development told that both the bills are being introduced in parliament for approval before the sixth review of the $6 billion Extended Fund Facility (EFF) by the International Monetary Fund (IMF) executive board on January 12.
The opposition parties have vowed to resist the government move to grant autonomy to the SBP aimed at targeting inflation rather than economic growth, calling it an agenda of the IMF.
The IMF has demanded Pakistani authorities seek parliamentary approval for the passage of the Tax Laws (Fourth) Amendment Bill and SBP’s Autonomy Bill. Prime Minister’s Adviser on Finance Shaukat Tarin has reiterated Pakistan’s plan to fulfill the conditions imposed by IMF as prior action before the sixth review on January 12. He said a tax exemption of Rs350 billion will be withdrawn through the mini-budget.
