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
Pakistani, Libyan commanders discuss regional security, military cooperation
- The meeting follows reports that Pakistan struck a $4 billion defense deal to sell military equipment to Libyan National Army
- Both sides exchanged views on matters of mutual interest, with particular focus on security dynamics in respective regions
ISLAMABAD: Libyan National Army Commander Field Marshal Khalifa Haftar met with Pakistan’s Chief of Defense Forces Field Marshal Asim Munir in Rawalpindi and discussed with him military cooperation and regional security, the Pakistani military said on Monday.
The meeting takes place after Munir’s visit to Libya in December that was followed by reports suggesting Pakistan had struck a $4 billion defense deal to sell military equipment, including JF-17 fighter jets and Super Mushak trainer aircraft, to the Libyan National Army that controls eastern Libya. There has been no official confirmation of the deal so far.
Haftar and Prime Minister Dr. Osama Saad Hammad, who governs eastern Libya, called on Field Marshal Munir at Pakistan Army’s General Headquarters in Rawalpindi, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“During the meeting, both sides exchanged views on matters of mutual interest, with particular focus on security dynamics in respective regions and professional cooperation,” the ISPR said in a statement.
“The discussion underscored the importance of continued engagement and collaboration between the Armed Forces of Pakistan and Libya.”
Libya has been subject to a UN arms embargo since 2011, requiring approval from the UN for transfers of weapons and related material. It was not clear whether Pakistan or Libya had applied for any exemptions to the UN embargo.
During Monday’s meeting, Munir reaffirmed Pakistan’s commitment to strengthening bilateral relations with Libya, reiterating his country’s support for peace, stability and institutional development in Libya, according to the ISPR.
“The meeting was held in a cordial and constructive atmosphere, reflecting the longstanding friendly relations between Pakistan and Libya,” the Pakistani military said.
