ISLAMABAD: Ex-Governor governor of the State Bank of Pakistan (SBP), Dr. Ishrat Hussain has expressed serious reservations over the bill which will grant autonomy to the SBP.
Dr. Ishrat said that the monetary and fiscal boards must not be dissolved under the new law. He said, “There is a dire need that both of the country’s policies are kept in the same direction.” Former SBP Governor Dr Ishrat was speaking at Geo TV’s current affairs programme. Dr Ishrat remained Governor of State Bank of Pakistan for two consecutive terms when Pervez Musharraf for ruling the country after dismissing Nawaz Sharif’s government.
Worth to note is that Dr Ishrat was among 18-member economic advisory council of the PTI government which gave a go-ahead signal to the government to beg for new loans from the IMF soon after the PTI came to power in August 2018. Out of 18 members of the council, only Dr Ashfaque H. Khan rejected the idea of borrowings money from IMF saying it would ruin the economy of the country and make miserable life of millions of common people.
However, Dr Ishrat Hussain said that the PTI government should not rely on constant and huge borrowings from the commercial banks and instead generate revenues through increase economic activities and investments in the country.
Federal Minister for Finance Shaukat Tarin has presented the SBP Amendment Bill with the supplementary finance bill in the National Assembly on Thursday to meet a condition of the IMF for the resumption of $6 billion External Fund Facility (EFF) of the International Monetary Fund (IMF).
Dr Ishrat said that the IMF should also have counseled the government that prioritising price stability over economic growth to this extent, would not be a healthy option.
