ISLAMABAD: Advisor to Prime Minister on Finance Shaukat Tarin Monday said that one outstanding issue for striking an agreement with the IMF was the SBP’s amendment bill.
He said all issues including fiscal and others were settled with the IMF except for one related to SBP’s amendment bill, as under the agreement, for getting an additional $500 million tranche last time, certain changes were agreed upon with the Fund in the SBP bill that have forced him to bear the burnt. However, he expressed his optimism that the deal with the IMF would be done in one or two days now.
“For bringing changes in certain clauses of the State Bank of Pakistan bill, it will require constitutional amendments. That cannot be done because we do not have a two-thirds majority in the parliament to pass the amendments. “We are making efforts to bring changes in such clauses of SBP bill,” the advisor on finance said after inaugurating Pakistan Single Window (PSW), organised jointly by the FBR Customs and USAID, here on Monday.
When asked about finalisation of the IMF deal in this week or the next week, Tarin said he was hoping for it in next one or two days. He said all issues were settled and there was one outstanding point with the IMF for striking an agreement on which Pakistan had sought legal opinion for moving ahead.
When this scribe asked whether the SBP bill proposed abolishing Monetary and Fiscal Coordination Board, the advisor said he was talking about the same things with the IMF. He did not explain which clauses proposed in the SBP amend bill required constitutional amendments.
One top official pointed out that the SBP amendment bill proposed indemnity for the governor and other high-ups of the central bank as well as for the members of the Monetary Policy Committee. The proposed SBP bill sought protection for the governor, deputy governors, and members of MPC from NAB and other law enforcing agencies on account of any actions taken during their tenures. The indemnity cannot be provided without constitutional cover. During the tenure of former advisor to PM on finance Dr Abdul Hafeez Shaikh, the federal cabinet had passed SBP amendment bill 2021 within 10 to 15 minutes and then the Ministry of Finance had laid down the bill before the parliament. However, there was severe criticism within the PTI and outside including from opposition parties after which the government did not pursue its approval from the Parliament. It was generally believed that the Parliament would not approve the SBP amendment bill in its existing shape. So changes would be incorporated to end clauses related to indemnity and proposal for doing away with the Monetary and Fiscal Coordination Board.
To another query regarding the cyber-attack on the National Bank of Pakistan (NBP), Shaukat Tarin said Pakistan’s enemies were standing around us and they had launched certain attacks, but it remained safe. Now the salaries and pension of public sector employees would not be delayed.
When asked about the price hike, he said it was an international phenomenon and they did not have solutions, however, he added that the government would soon launch a targeted subsidy programme to protect the poor segments of society.
To another query about financing of the deficit through Roshan Digital Accounts, he said that it would be below the line financing for the budget deficit, but only invested in government securities would be made part of the financing of the deficit.