ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail said on Sunday the government would appoint a new governor of the country’s central bank in the coming week.

The deputy governor of the State Bank of Pakistan, Dr. Murtaza Sayed, was asked to take over as the acting governor of the bank after Dr. Reza Baqir’s three-year term expired in May.

Prime Minister Shehbaz Sharif’s administration has been negotiating with the International Monetary Fund (IMF) to revive a $6 billion loan program to shore up its dwindling foreign currency reserves.

However, it has been criticized for not appointing an SBP governor amid Pakistan’s ongoing financial challenges.

“I am hoping, rather I would say I am certain, that this week, an [central bank] governor will be appointed,” Ismail said while addressing a news conference in the federal capital. “And let me tell you that my advice regarding this [appointment] will be taken into consideration.”

The finance minister lashed out at the previous administration of former prime minister Imran Khan, saying the incumbent government had inherited a country “on the brink of default.”

He said that Pakistan’s reserves decreased in February or March by about $5 billion due to the repayment of $2.3 billion to China and the current account deficit.

“When I took over as finance minister, Pakistan had $10.3 billion in foreign reserves,” he said. “Now, if you don’t have an IMF program and your reserves are this low, neither the World Bank nor the Asian Development Bank provides you funds.”

Ismail said even the Asian Infrastructure Bank was not willing to give Pakistan a loan until it received IMF funds.

“The truth is we were about to default,” he continued. “However, now that we are out of that situation, I can say that we saved Pakistan from default.”

Discussing the rapid depreciation of the Pakistani rupee, he said the government had cut down imports to $5 billion while adding the increasing dollar supply would gradually decrease pressure on the rupee next month.

“I believe we will witness an improvement in the situation in the next two weeks,” the finance minister said. “However, truth being told, no one can predict markets. I may think fundamentals are in my favor, but sentiments and speculations also play a huge part in these affairs.”