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 urges concessional finance for developing nations to boost clean energy security
- Pakistan has emerged as one of world’s fastest growing solar markets, with 12GWs of off-grid and 6GWs of net-metered capacity in 2025
- PM’s aide says Islamabad remains committed to Paris Agreement, looks for continued support in building a resilient and low-carbon future
ISLAMABAD: Pakistan has urged international partners to scale up concessional financing for developing countries, the country’s Press Information Department (PID) said on Sunday, citing an aide to Prime Minister Shehbaz Sharif.
The call was made by Sharif’s coordinator on climate change, Romina Khurshid Alam, while delivering Pakistan’s national statement at the 16th International Renewable Energy Agency (IRENA) Assembly in Abu Dhabi.
Pakistan has emerged as one of the world’s fastest growing solar markets, with 12 gigawatts (GWs) of off-grid and over 6GWs of net-metered solar capacity by the end of 2025. Last fiscal year, renewables accounted for a historic 53 percent of total electricity generation, according to Alam.
The prime minister’s aide stressed that affordable funding for developing nations is critical to accelerating their transition to clean energy and strengthening energy security amid rising climate and economic challenges.
“Alam reaffirmed Pakistan’s target of achieving 60 percent renewables in the power mix by 2030,” the PID said in a statement.
“In her call to action, she urged IRENA and Member States to increase concessional finance for developing nations, treat technologies such as energy storage and green hydrogen as global public goods, and strengthen regional cooperation for shared energy security.”
IRENA is a global intergovernmental agency for energy transformation that serves as the principal platform for international cooperation, supports countries in their energy transition, and provides state of the art data and analyzes on technology, innovation, policy, finance and investment. Its membership comprises 170 countries and the European Union (EU).
The 16th session of the IRENA Assembly is taking place on Jan. 10-12 in Abu Dhabi and focuses on the theme of “Powering Humanity: Renewable Energy for Shared Prosperity.” The session has gathered global leaders and energy decision-makers to discuss strategies and underline necessary actions for the acceleration of renewable energy across countries, regions, and the world, driving economic inclusion, equity, and human well-being.
Alam shared that Pakistan is taking action against energy poverty through initiatives like the Punjab Solar Panel Scheme 2026, which provides free or subsidized systems to low-income households.
She highlighted how distributed solar kits have restored power and livelihoods in flood-affected communities and offer a replicable model for climate-resilient recovery.
“Pakistan remains fully committed to the Paris Agreement and looks to IRENA for continued technical and financial support in building a resilient, inclusive, and low-carbon future,” Alam said.
Adopted in 2015 to combat climate change, the Paris Agreement binds nations to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.”
