IMF increases tension with Pakistan, remove Finance Secretary soon, otherwise…
IMF’s ultimatum to Pakistan, which passed the loan, said- ‘Remove the Finance Secretary immediately, or else…’
IMF orders Pakistan government
Pakistan’s economic situation has deteriorated severely after the recent Indian Army’s Operation Sindoor, due to which it has once again had to approach the International Monetary Fund (IMF) for financial assistance.
Pakistan has had to accept some strict conditions to get a loan from the IMF, due to which major challenges have arisen for the Shahbaz Sharif government.
According to a report in the Express Tribune newspaper, the IMF has ordered some immediate steps to be taken to maintain the autonomy of the State Bank of Pakistan (SBP). The most important condition in this is that the IMF has given an ultimatum to the Pakistan government to immediately remove the Finance Secretary from the Board of Directors of the SBP.
IMF orders removal of Finance Secretary
For the second time, the IMF has given an ultimatum to the Pakistan government to remove the finance secretary from the board of the SBP. The Finance Secretary’s voting rights were terminated in 2022 due to pressure from the IMF, but he is still a member of the board.
The IMF believes that the presence of the Finance Secretary creates obstacles in the independent functioning of the Central Bank. The move aims to strengthen the independence of the central bank.
Fill the posts of Deputy Governor immediately.
The IMF has asked the Punjab government to promote all the two deputy governor posts in the SBP. The IMF has said that such important posts should not be vacant for long as it creates policy constraints.
The IMF has also said that the Pak. government should update the Banking Companies Ordinance-1962 and deprive the federal government of the right to respond to commercial banks.
If Pakistan does not comply with IMF conditions
Pakistan is implementing the IMF’s $7 billion Extended Loan Program. If Pakistan wants a loan, it has to comply with the IMF’s conditions.
IMF to give loan to Pakistan in one installment after another. It will get an installment of one billion dollars only if it complies with the conditions, so it is difficult for the Shahbaz government to ignore the strict orders of the IMF.
An IMF team is expected to visit Pakistan in the third week of September. Before this visit, the Shahbaz government will have to take decisive steps to meet the conditions of the IMF.
