MOHAMMAD ARSHAD Islamabad
The government is likely to take some hard and bitter decisions on economic front to meet requirements and demands of the international financial institutions.
Since the outbreak of Coronavirus pandemic the global economy has been witnessing a downward trend and same happened with our national economy.
Therefore, the government had to engage the friendly countries and international monetary institutions to boost the sliding economy.
The International Monetary Fund will release another tranche of $ 500 million loan program to Pakistan after the approval of Executive Board.
According to well placed sources, now the government has almost decided to take some hard legal and administrative decisions which will ensure implementation of the demands and requirements of international financial institutions.
Moreover, these decisions will also ensure saving of non development expenditures to a large extent.
In this regard, over 50 clauses related to the State Bank of Pakistan Act will be amended to ensure smooth functioning and strict vigilance over the suspicious financial transactions to place a check on money laundering; a key demand of the Financial Action Task Force.
Moreover, tax subsidy over Rs 100 billion being enjoyed by different sectors will also be withdrawn to meet the revenue collection target as well as to enhance the tax base.
In a bid to ensure right person at right job, no serving or retired bureaucrat will be appointed as deputy governor SBP.
Similarly, no person having political affiliation with any political party will be appointed as deputy governor SBP.
IMF had demanded that SBP should not provide sovereign guarantee for rural or industrial credit, therefore, SBP would not provide guarantee to provincial or federal governments on investment or loans.
These proposals will be presented before the federal cabinet and after the approval the SBP amendment bill or other proposals will be presented before the parliament for further discussion and approval.
It is worth mentioning that Pakistan agreed to conduct audit into the Coronavirus related expenditures as well as reduce subsidy on power under the reforms programme in the last parleys with IMF.
