ISLAMABAD: A senior Pakistani minister on Tuesday criticized the opposition for making a legislation regarding the central bank’s autonomy controversial, saying the new law was not without checks and balances which were incorporated after “hard negotiations” with the International Monetary Fund.
The law was approved by the country’s national assembly last week and was enacted on the international financial institution’s insistence which had been demanding it to protect the State Bank of Pakistan (SBP) from any political interference.
The IMF executive board is scheduled to review Pakistan’s progress in terms of the implementation of structural reforms under a $6 billion loan program and may release another tranche of $1 billion later this month.
Pakistan’s energy minister Hammad Azhar told a news conference in Islamabad that central banks were always kept autonomous in the world since there was enough evidence that it allowed developed nations to bring down inflation and ensure economic growth.
“The federal government will appoint the central bank’s board of directors whose members can even remove the state bank governor,” he said, adding: “We managed to secure this concession of appointing the state bank board along with its governor and deputy governor from the IMF after hard negotiations.”
Azhar maintained previous administrations tried to influence central bank officials while dictating them how to manage the county’s monetary policy.
He added a similar bill was also suggested in 2015 by the opposition Pakistan Muslim League-Nawaz party wherein it was willing to surrender all its powers to the central bank board.
The minister noted the government had brought about a comprehensive reform in the area which was also “demanded by serious Pakistani economists for a substantially long period.”
Refuting the opposition’s criticism over the law, he said it was only going to strengthen the country’s economy and ensure sustained growth momentum.
Government says central bank autonomy not without checks and balances
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Government says central bank autonomy not without checks and balances
- The IMF wanted Pakistan to grant maximum independence to the central bank to end any possible political interference
- A senior Pakistani minister says the oversight mechanism was built into the law after ‘hard negotiations’ with the lending agency
Pakistan sends 7.5 tons of additional relief supplies to Sri Lanka after Cyclone Ditwah devastation
- Pakistan dispatches tents, tarpaulins, powdered milk aboard commercial flight from Lahore
- Pakistan Army, Navy and rescue teams are already operating in Sri Lankan disaster-hit zones
ISLAMABAD: Pakistan on Monday dispatched an additional 7.5 tons of humanitarian aid to Sri Lanka following widespread destruction caused by Cyclone Ditwah, the National Disaster Management Authority (NDMA) said in a statement.
More than two million people, nearly 10 percent of the population, have been affected by last week’s climate crisis-spurred floods and landslides triggered by Cyclone Ditwah, the worst on the island this century. Over 618 people have been killed.
Sri Lanka has issued a formal international appeal for emergency assistance, with Islamabad stepping up support on the direction of Prime Minister Shehbaz Sharif.
Monday’s relief consignment, including tents, tarpaulins and powdered milk, was flown to Colombo from Lahore on a commercial aircraft.
“NDMA has coordinated with airlines to ensure that all available cargo space on commercial flights is fully utilized for the rapid transport of relief items,” the disaster agency said. “This mechanism will continue in the coming days to dispatch further assistance as required.”
Pakistan has been supporting relief operations since the onset of the disaster. A Pakistan Army search-and-rescue team is currently operating in affected regions, backed by Pakistan Navy ships and helicopters assisting local authorities with evacuations and life-saving missions.
NDMA said Pakistan “stands firmly with the people of Sri Lanka in this difficult hour and will continue to extend all possible assistance to support ongoing rescue and relief efforts.”
The International Monetary Fund said on Friday Sri Lanka had requested financial assistance of about $200 million to address the destruction caused by the cyclone.
