Saturday, March 2, 2024

PM Imran Khan drops plan to seek IMF chief’s help on $6 Billion deal.

Prime Minister Imran Khan has cancelled a plan to call the managing director of the International Monetary Fund (IMF), which the government had agreed to make last week in order to get the official’s help in removing roadblocks to the $6 billion deal’s revival.

The ratification of the SBP modification Bill 2021 and the introduction of a finance bill in the National Assembly to create a mini-budget remain the two major roadblocks to the $6 billion rescue package being resurrected.

According to sources, Prime Minister Khan and Finance Adviser Shaukat Tarin discussed the possibility of calling IMF Managing Director Kristalina Georgieva on the phone.

According to the sources, the goal of the phone call was to enlist Kristalina’s help in softening the conditions on the SBP bill’s approval.

According to reports, the idea was floated in response to the government’s decision to reintroduce some significant modifications to the already approved draught of the State Bank of Pakistan Amendment Bill 2021.

When asked if a call to the IMF managing director had been made last week, the finance adviser said on Monday, “There is no need for a telephone contact to the managing director of the IMF.”

Last week, the law minister informed the IMF about phrases passed by the federal cabinet as part of an attempt to grant unlimited autonomy without responsibility, but which were unlawful elements.

These are connected to a method for removing the SBP governor, allowing him to appear before parliament without going through Finance Division, granting the governor and others ultimate immunity from any probe, and restricting parliament’s ability to change the SBP statute.

According to sources, the government asked the IMF to allow it to make a few further amendments to the bill, including leaving the option of borrowing from the central bank open and maintaining the finance secretary on the SBP board.

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