ISLAMABAD – Federal Minister for Finance Shaukat Tarin Monday clarified that approval of the State Bank of Pakistan (SBP) Amendment Bill 2021 will not end the government’s control on the central bank.
Tarin stated this during a meeting of the Senate Standing Committee on Finance Revenue and Economic Affairs chaired by Senator Talha Mehmood.
He highlighted that the members of the SBP’s board of directors will be nominated by the government, which will also have the authority to appoint members of the board.
The SBP Act will not make the central bank independent.
The meeting was held as the National Assembly session is underway but the SBP bill is not under consideration as per the 48-point agenda issued by the National Assembly Secretariat. However, Tarin will seek approval for the Finance (Supplementary) Bill.
The SBP Amendment Act 2021 is one of the main prior conditions imposed by the International Monetary Fund (IMF) for the revival of its $6 billion loan programme.
The government is making efforts to get the Finance (Supplementary) Bill and the SBP Amendment Act approved from the parliament to resume the IMF loan programme.
During the meeting, the finance minister warned of a slight surge in inflation after the passage of the supplementary finance bill, which is being dubbed as mini-budget by the Opposition.
The finance minister said that taxes should be imposed on cosmetics, drinks, agriculture products.
Meanwhile, IMF has rescheduled the meeting for the sixth review of the Pakistan’s loan programme.
‘Perception of govt selling SBP wrong’For his part,
Governor SBP Reza Baqir rejected impression that government is going to sell the central bank to IMF. “Now the document is available to everyone, the government’s powers have not been curtailed,” he said.
