ISLAMABAD: A day after launching $2.5 billion international bond and receiving $500 million tranche from the International Monetary Fund, newly appointed Finance Minister Hammad Azhar on Wednesday hinted at reviewing the IMF programme and the controversial State Bank of Pakistan amendment bill 2021.

“We are taking the SBP law to parliament with an open mind and are ready to adopt recommendations for its improvement,” he said at his maiden news conference as finance minister.

The minister said the SBP amendment bill had been prepared in line with international best practices and introduced in parliament. He said the matter was sensationalised as if the country’s sovereignty had been breached, adding that the central bank was also given autonomy in the past that was being consolidated through the fresh bill. In the light of the debate in parliament, the bill would be reviewed in case recommendations for improvements emerged, he said.

The minister parried a question about whether the original SBP amendment bill agreed to by the IMF was set aside and a revised bill was suspiciously taken to the cabinet for approval without clearance from the cabinet committee on legislative business. He also did not commit if the draft bill and accompanying report of the IMF’s technical mission on the SBP law would be made public.

On the sidelines of the news conference, the minister said the government could also review the IMF programme. When asked if the design of the programme could also be changed given its harsh conditions, he said the government always had the powers to review the programme.

Mr Azhar said discussions with the IMF were continuing and he was in contact with the Fund. The $500m tranche from the IMF had already been received, which would be followed by another $2.5bn in a few days raised through international bonds.

The minister said inflation remained a major challenge as it was a global phenomenon in the wake of Covid-19 and that he would address those weaknesses that still remained instead of repeating shortcomings of the past.

Published in Dawn, April 1st, 2021