PPP accuses SBP governor of causing Rs700 bn loss to exchequer

ISLAMABAD: The Pakistan People’s Party (PPP) Wednesday accused Governor State Bank of Pakistan Dr Reza Baqir for Rs700 billion loss to national exchequer with upward revision in fixed Pakistan Investment Bonds rate and re-profiling of government loans by over Rs300 billion, and announced to make him accountable.

“The IMF did not press for an increase in interest rate but the SBP governor increased it as the central bank made policy rate hike to 13.25 percent P.A in 2020 in violation of IMF policy rate cap of 12 percent and medium-term and short-term re-profiling of government loans which increased the interest payments by the federal government by over Rs300 billion instead of reducing Government of Pakistan loans,” said the PPP Secretary Finance Senator Salim Mandviwala while addressing a press conference here with Shazia Atta Marri, Faisal Karim Kundi and Haider Zaman Qureshi while releasing the PPP paper on “State of Economy of Pakistan—Myth and Reality”.

Senator Salim Mandviwalla said the Senate Finance Committee will investigate this scam. He hinted that the PPP will also become the party in the petition of Dr Muhammad Zubair, who has filed a petition under Article 184(3) before the Supreme Court of Pakistan on governor SBP.

Salim Mandviwalla said that hot money was around $2 billion and this was converted into Rupees and interest rate of 13percent plus was applied to it. “This added to the overall interest costs of the government and subsequently all the hot money left Pakistan including the high interest that was paid on it,” he said.

He said this is exactly what happened in Egypt during his term there which totally shattered their economy and to date this is widely criticised. Salim Mandviwalla said during this period, any interest cost on Tbills paid by government of Pakistan above the 7.30 percent threshold has been factored in as “additional” cost.

Mandviwalla said the PTI's leader Imran Khan has spoken nothing but corruption over the last 1,000 days in power but his own government is engulfed in corruption scandals.