ISLAMABAD: The federal Cabinet has approved the State Bank of Pakistan (SBP) Amendment Bill, which will curtail the government’s borrowings from the SBP.
The approval of the SBP Amendment Bill is a part of upfront actions proposed by the International Monetary Fund (IMF) for the resumption of suspended bail out package before the upcoming sixth review of the Extended Fund Facility b the IMF executive board, scheduled for Jan 12, 2022.
The SBP Amendment Bill will extend tenure of the Governor of State Bank of Pakistan from three to five years. It is yet not clear whether it becomes applicable for the incumbent SBP governor or not.
Meanwhile, another bill, the Tax Laws (Fourth) Amendment Bill, which was to be presented before the Cabinet, was deferred for the time being. The main reason behind the deferral was the resistance from the PTI-led regime’s allies who wanted to go through details of the mini-budget.
PTI government is seeking resumption of IMF suspended bail out package with the view that it will support balance of payment position and encourage inflows of more foreign loans and investment.
