Govt negotiating with banks to raise Rs1.275tr, Senate panel told

ISLAMABAD: The State Bank deputy governor informed the Senate Committee on Wednesday that the government was currently negotiating with banks to raise around Rs1.275 trillion in financing. Senator Shibli Faraz expressed concern over the strategy, stating that securing new loans to service old ones merely shifts the burden onto the public.

Senator Saleem Mandviwalla chaired the committee meeting convened at the Parliament House to deliberate on key policy, legislative, and regulatory matters.

The committee adopted the report of the Sub-Committee on “Resolving the Issues Related to Solar Panels” and recommended that one month be given to the State Bank and the FBR to finalize the report for future course of action to minimize the issue of over-invoicing and under-invoicing.

The committee further deliberated on the federal government’s rightsizing policy, with the committee members voicing concerns over its clarity and implementation.

Senator Sherry Rehman emphasised the need for transparency, asking whether the abolition of posts targets only vacant positions or also affects the current staff, particularly long-serving contract employees. She further stressed the importance of a macro-level overview of the financial and human resource implications by early June.

Moreover, the committee was briefed by the deputy governor of the State Bank of Pakistan on the government’s efforts to restructure the power sector circular debt.